The world's largest jewelry retailer states it wants to "break free from reliance on silver jewelry," and its stock price surged by 16%

Global sales leader in jewelry, Pandora, saw its stock price surge 16% on Thursday after the company announced it would reduce its reliance on silver and launch platinum-coated jewelry products. This strategic shift aims to address the impact of severe fluctuations in silver prices on the company's profitability.

CEO Berta de Pablos-Barbier, who has been in office for just a month, stated in an interview with CNBC that by introducing platinum-coated materials and expanding the product range, the company would be able to maintain profit margins above 20%. She emphasized that currently about 60% of the business relies on silver, saying, "We must decouple the company from silver trading prices."

Silver prices have soared over 150% in the past year, rising from around $30 per ounce to approximately $73 currently. Analysts had previously warned that the severe volatility in silver prices posed a "serious problem" for the Danish jeweler, with Pandora's stock price having fallen about 60% over the past 12 months.

The company also released its quarterly financial report, forecasting organic growth to be flat in 2026, ranging from -1% to +2%, with an expected EBITDA margin between 21% and 22%.

Impact of Silver Price Volatility on Profitability Visibility

Jefferies analysts noted on Tuesday that, given the recent trends in silver prices, investors are cautious about Pandora. "The challenges of the past few months mean that even in a more normalized silver price environment, the company's valuation will remain significantly below levels seen a year ago."

Pandora stated in its financial report that it would reduce its reliance on a single metal by diversifying its metal material mix. De Pablos-Barbier emphasized that expanding the variety of metals would help the company escape the troubles caused by silver price fluctuations.

Citigroup analysts pointed out, "The extreme inflation in precious metal prices has severely reduced profitability visibility. The volatile macro backdrop in the U.S. and European markets (which account for about 80% of sales), along with potential signs of brand fatigue and overall weakness in jewelry consumption, further undermined recent confidence."

Weak Demand in the U.S. Market Drags Performance

In the fourth quarter, Pandora's organic growth was 4%, but demand in the U.S. market, which accounts for about one-third of its business, continued to be weak. De Pablos-Barbier stated, "The reality is that we see consumer confidence in this market at its lowest level since the 1960s."

Same-store sales growth remained flat in both the fourth quarter and the first month of 2026. Citigroup analysts noted that this also marked the first instance of negative same-store sales growth for Pandora's strategic focus area "Fuel with More" since the end of 2022. This segment focuses on expanding from traditional charms to new categories such as rings, necklaces, and lab-grown diamonds.

The company forecasted a full-year organic growth of 6% for 2025, which it had previously announced in January, down from 13% the previous year and below its own growth guidance of 7% to 8%. De Pablos-Barbier stated that the company would attract U.S. consumers to maintain loyalty by revitalizing the brand and launching new products