Pandora A/S, the world's largest jewelry retailer by sales volume, saw its shares jump 16% on Thursday after announcing plans to reduce its reliance on silver and introduce platinum-plated jewelry products. This strategic pivot aims to mitigate the impact of silver price volatility on the company's profitability.

Berta de Pablos-Barbier, who became CEO just one month ago, stated in an interview with CNBC that by introducing platinum-plated materials and expanding the product portfolio, the company will be able to maintain a profit margin above 20%. She emphasized that approximately 60% of current business relies on silver, adding, "We must decouple the company from the trading price of silver."

The price of silver has surged more than 150% over the past year, rising from around $30 per ounce to approximately $73 currently. Analysts had previously warned that extreme fluctuations in silver prices pose a "serious problem" for the Danish jeweler. Pandora's stock has fallen about 60% over the past 12 months.

The company also released quarterly results, forecasting organic growth to be largely flat in 2026, ranging between -1% and +2%, with an expected EBIT margin between 21% and 22%.

**Silver Price Volatility Hurts Earnings Visibility**

Jefferies analysts noted earlier this week that investors remain cautious toward Pandora given recent silver price movements. "Challenges over recent months mean that even in a more normalized silver price environment, the company's valuation will remain significantly below levels seen a year ago," they said.

In its earnings report, Pandora indicated it will reduce dependence on any single metal by diversifying its metal material portfolio. De Pablos-Barbier stressed that expanding the range of metals will help shield the company from silver price swings.

Citigroup analysts commented, "Extreme inflation in precious metal prices has severely reduced earnings visibility. A volatile macroeconomic backdrop in the U.S. and Europe—which account for about 80% of sales—along with potential signs of brand fatigue and overall softness in jewelry spending, further dampen near-term confidence."

**Weak U.S. Demand Weighs on Performance**

In the fourth quarter, Pandora reported organic growth of 4%, but demand in the United States—which represents about one-third of its business—remained persistently weak. De Pablos-Barbier noted, "The reality is, we are seeing consumer confidence in that market at its lowest level since the 1960s."

Same-store sales growth was flat in both the fourth quarter and the first month of 2026. Citigroup analysts observed that this also marked the first time since late 2022 that Pandora’s "Fuel with More" strategic segment—which focuses on expanding from traditional charms into new categories such as rings, necklaces, and lab-grown diamonds—recorded negative same-store sales growth.

Full-year organic growth for 2025 came in at 6%, as pre-announced in January, down from 13% the previous year and below the company's own guidance of 7% to 8%. De Pablos-Barbier said the company plans to reinvigorate the brand and launch new products to encourage loyalty among U.S. consumers.