economy
February 3, 2026
World’s largest jeweler falls after analysts warn it will be hit by volatile silver price
While rising costs are squeezing Pandora's margins from one side, a deteriorating macroeconomic backdrop is hitting it from the other.
TL;DR
- Pandora shares fell nearly 7% after analysts warned of pressures from surging silver costs and cautious consumers.
- Jefferies analysts downgraded Pandora's stock to Hold from Buy, citing a "more pressured consumer" and rising silver prices.
- The company faces a "between a rock and a hard place" situation due to volatile silver prices and hesitant consumer engagement.
- Pandora's stock has fallen 46% in 2025 and is down 26% year-to-date.
- In January, Pandora cut its earnings guidance and warned about weakening consumer sentiment in the U.S.
- Analysts estimate 60% lower profits in 2027 due to silver price increases.
- A switch to silver-plating or stainless steel is considered unlikely to solve the issues due to manufacturing complexity and potential customer offer deterioration.
- Rising input costs were partially addressed by a 14% price increase, which damaged consumer engagement.
- Citi analysts also downgraded Pandora shares to Neutral in January, citing slowing sales momentum and extreme silver inflation.
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