Danish jewellery maker Pandora said on Wednesday that its growth and profit margin this year would be lower than last, as it expects sluggish demand in Europe and slowing growth in Germany after a strong run.

Pandora, known for its charm bracelets, reported operating profit in line with expectations for the key holiday shopping quarter, but said Black Friday discounts had driven a bigger share of sales, weighing slightly on profitability.

The world’s biggest jewellery company by volume said it sees 7-8% organic growth in 2025. Organic growth for 2024 was 13%, better than the company’s guidance of 11-12%.

Pandora reported fourth quarter comparable sales growth of 9% in the U.S., helping drive 6% growth overall. Germany’s comparable sales grew by 28%, slower than the 42% growth in the third quarter, while revenues in France and Italy both fell.

“We had a very strong fourth quarter in the U.S. and Canada,” Lacik said in an interview. “It’s a stronger consumer demand and sentiment in the U.S. than we see in Europe, and one would probably think that that’s going to continue into this year.”

Pandora said performance in Italy and France was impacted by economic challenges and an “intense promotional environment” – competitive pressure to lower prices and discount products.

Fourth-quarter operating profit rose to DKK4.15 billion from a year-earlier DKK 3.67 billion, against a mean forecast of DKK 4.10 billion in an analyst poll provided by Pandora. Pandora’s operating profit margin was 34.7%, slightly above analysts’ average forecast.

The company expects an operating profit margin of around 24.5% in 2025, down from 25.2% last year.

Pandora, whose shares recently hit a record high, also launched a new share buy-back programme for up to DKK4 billion.