Core Viewpoint - Pandora A/S is facing significant challenges in the Chinese market, leading to a decision to double the number of store closures from 50 to 100 and initiate large-scale layoffs [1][2] Group 1: Financial Performance - In Q1 2025, Pandora's sales in China were only 96 million Danish kroner, a decline of 11% compared to 2023 [1] - In Q2 2025, comparable sales in the Chinese market dropped by 15%, while the overall group saw a 3% increase in comparable sales during the same period [1] - From 2019 to 2025, Pandora's revenue share in China decreased from 9% to 1% [1] - For Q2 2025, Pandora reported total revenue of 7.075 billion Danish kroner, up from 6.771 billion Danish kroner in the same period last year [2] - The company's operating profit (EBIT) for Q2 was 1.287 billion Danish kroner, down from 1.338 billion Danish kroner year-on-year [2] - The net profit for Q2 was 803 million Danish kroner, slightly up from 799 million Danish kroner in the previous year [2] Group 2: Market Dynamics - The decline in Pandora's performance in China is attributed to changing consumer preferences, with a focus on value retention in purchases [2] - Younger consumers in China are increasingly favoring local brands like Lao Pu Gold, which offer both value retention and collectible attributes [2] - Pandora's product materials, such as 925 silver and 18k gold, require frequent repairs, making them less appealing to the majority of young Chinese consumers [2] - Despite challenges in China, Pandora's overall global revenue, particularly in the U.S. market, continues to grow, driven by strong demand [2]