Pandora A/S (PANDY) Q3 2026 Earnings Call Transcript

Bilal Aziz: Good morning, everyone, and welcome to the conference call for Pandora's Q3 2026 results. I'm Bilal Aziz from the Investor Relations team. I'm joined here by our CEO, Berta De Pablos-Barbier; CFO, Anders Boyer-Sogaard; and incoming CFO, Paulo Garcia; and of course, the rest of the IR team. As many of you probably know, we will be providing a strategic update on today's call. We'll, therefore, start with a quick download of the Q3 results and then move into the strategic update. With that, as usual, there will be a Q&A session at the end of the call. If you could kindly limit yourself to 2 questions at a time, that would be great. Please pay notice to the disclaimer on Slide 2 and turn to Slide 3, and I will now hand over to Berta.

Berta De Pablos-Barbier: Thank you, Bilal, and welcome, everyone. Let me start with our third quarter results. We delivered 6% organic growth. That includes a 4% like-for-like growth with all 4 regions contributing positively. This is, of course, an encouraging step forward against a challenging consumer backdrop. Of course, importantly, we continue to see the impact of the actions we have taken to strengthen demand. Profitability also remained strong. The gross margin reached just under 84% and EBIT margin close to 60% -- 16%. Both increased versus last year and benefit from the one-off income of previously paid U.S. tariffs. However, there is also an underlying strength in the business as excluding this refund, gross margin improved by 100 basis points, which was supported by healthy underlying drivers and a very good cost discipline. So overall, a solid performance despite many external headwinds. An encouraging quarter, there is, of course, more work ahead, but we are confident in our plans to turn this progress into consistent quality growth. We have spent this year deepening our understanding of consumers so that we can sharpen our choices and create consistent demand. And later, I will show you how this comes together in our new demand model. Let's now turn to guidance on the next slide, please. So based on our performance year-to-date and our outlook for the remainder of 2026, we are upgrading our full year guidance. We now expect organic growth of 2% to 3% compared with our 0% to 3% previously. We are also upgrading our EBIT margin guidance to 22.5% to 23%, and that comes from a 22% to 23% previously. This growth update reflects the higher like-for-like expectations now at 0% to 1% for the full year versus what we communicated previously, -2% to 1%. Okay. So now let me address what this implies for quarter 4. We are encouraged by the improvement in quarter 3, but we are not assuming that the recovery will follow in a straight line. The consumer environment remains uncertain. Geopolitical risks are high and some of our initiatives will take time to deliver their full potential across all markets. It's also important to note that in quarter 3, Japan accounted for nearly 2 percentage points of the entire like-for-like growth, and that is a market that we expect to moderate in due course. So balancing confidence in the action and realism about the environment in which we operate. Anders will take you through the guidance a little bit more detail later. And on current trading, by the way, October landed at +1%. Now let's -- let's now look a little bit more closely at our performance in the quarter. So let's go to the next slide, please. If we look at performance by segment, both parts of the portfolio delivered positive like-for-like growth in quarter 3. Core returned to growth at 1%, and this was supported by the second Talisman collection launch, the continued strength of our collaborations and also relevant newness introduction in our playful charms with the Blue Ocean collection. Fuel with More accelerated to 9% like-for-like growth with sustained momentum in Timeless and double-digit growth in Essence. Let's go to the next slide, please. You see in this slide, something that I'd like to spend a little bit of a moment, which is Talisman. We first introduced this collection last year in a distinctive new collection within the bold aesthetic. In Q3 this year, we expanded Talisman with zodiac-inspired design and extended its distinctive design language into new jewelry category: rings, earrings and new necklaces. So we also amplify the collection for our customers with events in different cities like London and Los Angeles. We brought together press and influencers, which generated a strong earned media coverage. So if I'm focusing on this, it's because Talisman is a good illustration, a good example about how can we build enduring design platforms that consumers recognize as Pandora while we renew with fresh creativity and amplify through cultural relevance. That combination generates excitement, earned media value and, of course, commercial returns. This is how we plan to build lasting desirability by evolving designs over time rather than relying on a succession of one-off launches. So let's move to the next slide, please. If we turn to our regional performance, all 4 regions delivered positive like-for-like growth in quarter 3. I would like to highlight that during the quarter, we deliberately reduced promotional activity since we want to build demand through the strength of our product brand and consumer experience rather than relying excessively on promotions. And in quarter 3, we were able to do that. In North America, like-for-like growth accelerated to 3%. That was supported by better in-store execution, product newness and targeted brand activation. Consumer sentiment and traffic, however, remain subdued. EMEA improved to 1%. Spain, Poland and Portugal continued to perform well, while U.K., Italy and Germany improved sequentially. Latin America delivered 6% like-for-like growth that was supported by the actions implemented earlier this year, which included, if you remember, our price repositioning model, partly offset by the planned promotional reduction in Mexico. Asia Pacific continued to deliver strong growth at 20%, led by Japan. As I mentioned earlier, the growth in Japan contributed to nearly 2 percentage points of the total group like-for-like in quarter 3. Now the success that we have in Japan demonstrates our demand model in new markets. So we still remain encouraged by the opportunity in the region, but of course, these growth levels will moderate as we move forward. And with that, I'm very happy to hand over to Anders to give you a run through the quarter 3 financials.

Anders Boyer-Søgaard: Thank you, Berta. And please turn to Slide 10. And let me start with some of the financial highlights for the quarter. Starting with the gross margin, you will see that it was just below 84%, so a very high level. And similar to the second quarter, this did benefit from a one-off gain of around 340 basis points coming from the refund of tariffs. But even excluding that, the gross margin was above 80% and thereby 100 basis points above the level last year. And that means that we more than offset all of the headwinds coming from commodities and the ongoing tariffs. The lower promotional activity in the third quarter comes through positively on the gross margin as well. And then at the same time, we saw favorable channel mix, operational efficiencies and also some other one-off income that all supports the gross margin. On working capital, net working capital, excluding the impact of commodity hedging was higher versus last year at 7.2% of revenue, as you can see in the table here. And as mentioned early on this year, this was expected and is driven by the inventory build relating to, first of all, higher commodity prices, but also our transition to platinum plating and our decision to improve stock availability at retail to drive revenue. So now let's look at revenue development in more detail at the next slide. The third quarter delivered 6% organic growth, supported by like-for-like of 4% and Berta has already covered the like-for-like drivers. So I'll just touch on 1 building block in the bridge here, and that's the -2% impact from sell-in and other. And that reflects a couple of different elements, including lower sell-in to some partners, but also some phasing into Q4. So we expect some of that to reverse next quarter or this quarter, Q4 and thereby remain at -1% for the full year as planned. And then let's turn to profitability on the next slide. EBIT margin, the performance was strong. The reported EBIT margin increased 190 basis points to 15.9%, as you can see in the bridge here. Similar to the second quarter, this was helped by a refund of our claim on U.S. tariffs, and that accounted for 370 basis points on EBIT margin level, as you can see here, with the largest building block in the bridge. You can also see a slight negative net operating leverage in the quarter despite like-for-like being at 4%. And that's simply mainly the reversal of the positive cost phasing, which helped operating leverage positively back in Q1 and Q2. And you will remember that we have called that out earlier, and we still expect this phasing to be neutral for the full year. Without the one-off effects facing external headwinds, you can also see from this bridge that the underlying margin is broadly flat versus last year. And then let's move to the guidance, please. We have upgraded both our revenue and EBIT margin guidance, and let me tackle revenue first. We've upgraded our organic growth guidance to 2% to 3%. The upgrade is driven by higher like-for-like expectations where we now see like-for-like growth of between 0% and 1%, while before it was between -2% and 1%. And I'm sure that most of you have figured out that for Q4, this implies like-for-like growth of between, let's say, around -3% and around flat. And that's despite an easier comp here in Q4. So that deserve a few more words. The low end of the guidance continues to factor in the fact that the consumer environment remains weak and that the geopolitical uncertainty remains very high. And even though we only have 8 weeks left of the year, we do see an elevated risk that geopolitics can impact consumer behavior with short notice. The high end calls for around flattish growth in Q4 and a few points around that. Roughly half of the growth in the third quarter was driven by Japan, and we do not expect that to continue. And on that note, Japan is comping more than 100% like-for-like growth last year here in Q4. And secondly, on the comp base, if you dig into the comp base, you will see that the comps do get a fair bit easier here in the Q4. And it's not least in the U.S. where the comp base gets easier, 4 percentage points, in fact, from Q3 to Q4. But the U.S., in a way, is just a hard environment to call these days. So let's see how the holiday season plays out during the next couple of months. And finally, as we have reported, our like-for-like growth so far here in Q4 was +1%. It was negatively impacted by lower promotional activity and the underlying trends remained healthy and closer to 3% like-for-like growth. So summing it up, we are very pleased with the progress that we have seen so far in 2026. We are pleased with what we have lined up for the peak season ahead of us, but we have to keep in mind that the consumer environment is not strong and the short term is subject to elevated uncertainty. So next slide, please. On the EBIT margin, we have upgraded our guidance slightly and now expect a margin between 22.5% and 23%. So basically, it's an upgrade towards the high end of our previous range. And you can see our updated and quite detailed bridge here. There's been a few small moving pieces between the building blocks since last quarter. But basically, the upgrade accounts for a slightly higher amount related to the refund of our tariff claim and slightly lower one-off costs related to the platinum transition. And on that note, I'll hand it over to Berta for the strategic update.

Berta De Pablos-Barbier: Thanks, Anders. So can we please turn to Slide 17. Over the past 11 months and particularly since February, I have been sharing with you my perspective on what we need to sharpen to reenergize Pandora's growth. You will recognize this slide, which I have shared with you before, and it outlines the strategic priorities we have been discussing and gradually have been implementing in this year. I have talked before about the importance of design, strengthening our brand relevance and taking a more differentiated approach to win market by market. But I have also been very clear about the strengths that we have and the strengths we are building from. Next slide, please. Our vision is very clear, is to become the world's most desirable accessible jewelry brand. I want to emphasize that accessible here isn't just a compromise. It's our foundation, and it will stay that way. There is no doubt about that. Pandora operates in a large, growing and still very fragmented market. We are bringing a globally recognized brand, resilient collections and world-class craftsmanship at scale. Our integrated value chain and store network give us direct access to millions of consumers worldwide. So together, those advantages cannot be taken for granted. They set Pandora apart, and they underpin our strong competitive position. But of course, great awareness, scale on its own will not deliver the consistency of growth we are aiming for. We have built a leadership in a relatively focused playing field. So the question is how we evolve that strong foundation for the next chapter of growth. Let's go to the next slide. We have a very simple goal. We want to build a bigger Pandora while remaining unmistakably Pandora. This means for us that we need to build the brand with discipline and consistency, but we need to broaden our relevance. We have built our leadership mainly on playful charms and charm bracelets. And that success has actually shaped a very narrow perception of the brand. Millions of people know Pandora, but many still associate us with that relative narrow part of the jewelry market. Our growth opportunity is to give more reasons to existing customers to keep coming back and more reasons for new customers to start choosing us. And this is why throughout this year, we have been conducting deep consumer work, and we have focused on 3 questions. Pandora, a strong brand, but what is the role that we play in people's jewelry life? What is really making Pandora distinctive? Design is important, but in which aesthetics can we credibly win with our collections. And last but not least, how consumers experience Pandora across every touch point, and we pay a very particular attention to our stores. So we have been doing all our homework. We have listened very carefully, and we have a clear and sharper understanding of where our growth opportunities lie. And I'm going to take you through all of this. So let's go to the next slide. What became very clear through our research is that jewelry is no longer just about adornment or a status. Our research revealed a strong appetite for jewelry that can be personalized, layered and added on over time. By the way, charms have never been so relevant as they are today. Customers, we learned, want to create their own style and looks, building collections that evolve with them over time. They choose pieces that become more meaningful as they add to them because they carry their story. And we see this in multiple aesthetics and categories from charms, but also in rings and necklaces. Also, it is important that this new attitude towards jewelry, it is shared across ages and geographies. It is sparked by Gen Z, which have a strong influence, but it is spread broadly and is not limited by age. So what is encouraging about all this information is that the behaviors that are shaping the future of jewelry are already part of Pandora's DNA. It is where we dominate today. So our opportunity is how we use that strength to attract more customers in different ways. So let's go to the next slide. So what is it that makes Pandora distinctive in people's jewelry lives? Well, it first start with a role that resonates with all customers, the ones that purchased Pandora, but also and very importantly, those that do not buy us today. Pandora give millions of people more ways to express who they are and what matters to them through jewelry. We are building on that heritage to unlock something bigger, which we refer as unlocking the joy of expressing who you are. Now rather than me continue to explain these good words, we thought that it would be a good idea to put together a short film that it captured this ambition, the ambition we have this direction. Important, this is not an advertising campaign. It's just a mood film to illustrate everything that I've been saying before, but of course, it will inspire our campaigns. So let's just watch it. [Presentation]

Berta De Pablos-Barbier: So yes, you have seen it unlocking the joy of expressing yourself, unlocking the joy of being who you are. This is more than just brand ambition. This is about self-expression, and this is the role that Pandora plays in people's life. And the jewelry, our Pandora jewelry is bringing it to life through a very simple truth. So let's go to the next slide. We craft symbols created in culture worn as identity. This is what makes Pandora distinctive. This is what makes it unmistakably Pandora from hearts and bows to stars, amulets and protective Talisman, from mythology and spirituality to animals and the people and places we love. These are all creative opportunities we can scale. Historically, we have been delivering this with charms and bracelets only in 1 aesthetic, the Playful aesthetic. Now we can bring these symbols to life in different aesthetics, in different categories, and this unlocks new opportunities to grow. Also, our charms can evolve across different symbols, across different aesthetics. Symbols don't always have to take the form of charms. So what am I saying is that this insight can inspire new jewelry design across different categories. And that's why our demand creation model starts with design as the first engine to drive growth. Let's look at it going to the next slide. Our model brings together 3 engines to generate demand. Design creates desire and give customers more reasons to choose Pandora. Brand is building relevance, so more people see Pandora as a brand for them and experience turns both into growth. They reinforce each other. And together, they drive demand, more consumers, higher conversion, which combined with our scale and operating discipline is turning that demand into growth. You have seen that this year, we already have started implementing this new model, and we are seeing encouraging signs. So let me just take you through each of this engine. And of course, we start with design. So let's go to the next slide. Now with designs, which aesthetic platforms, how have we defined where to play. We did a very in-depth research, and we identified 4 sizable aesthetic platforms that have the greatest growth potential for Pandora. You can see them on the screen, they have -- they are playful, sparkling, bold and delicate. We are already leading in playful, but we believe we have only scratched the surface of its potential. By bringing fresh creativity, we can still unlock significant opportunity with refreshed designs. In sparkling, we have already established a strong position. We have there our Timeless collection, but really, we have barely begun to explore the breadth of creative themes it can offer. In bold, where we have Talisman and delicate, we are just getting started. Our early successes have confirmed that we can win in these aesthetics and that we have credibility to win and, of course, significant room to grow. You have seen what we've been doing on Talisman in the bold aesthetic and delicate will be a priority for 2027 with the new collection introduction. Now today, with playful and sparkling, we've been concentrating in around 25% of the market. By expanding to these new 2 aesthetics, we are expanding our play field to around 65%. So we have room to grow where we already lead and even more when we are getting starting. So at the end, it's about refreshing our designs and it's about giving more customers more reasons to choose Pandora. Because, of course, we do that through different designs in enduring platforms. The designs evolve and customers keep finding something to love, but design doesn't need to start from 0 every single season. It's building desire over time across platform. Let's see what we mean by going to the next slide. I'll bring it here to life with 3 collections, Blue Ocean in playful, Garden of Dreams in sparkling and Talisman in bold. Each of them give a different way to express consumers who they are, and we do that with Pandora jewelry. These 3 collections, and you can just read there the like-for-like have been our strongest performance this year, which gives confidence in the growth potential when we expand to new aesthetics. It's not only introducing the products, it's also the way we launch these collections, the way we brought our model of life where we combine distinctive design with cultural relevancy to drive success. So yes, if design creates desire, we need the brand activations to turn that desire into demand and that take us into our second engine brand. So let's go to the next slide. I think I have been sharing this in previous quarters, so I'm not going to extend here. We are evolving our marketing in 3 ways. First, we are shifting from broad brand communication that was mainly on linear TV to bring our collections to life through curated storytelling, and this is simply making easier for our customers to discover our new jewelry and to choose it. The second, we've been very focused on reach, and now we are establishing also reach and cultural relevance. This is about creating excitement and generating earned media. You see there a picture about the launch in quarter 3 of Pandora Wonders, which generated record earned media. And of course, from 1 global expression and 1 global brand that we keep, but we have to be a stronger local. So it's a global expression with local relevance so that we keep a global identity, but we have local impact. So once we have the brand, how we turn that desire and relevance into every interaction that customers have with Pandora. Let's go to the next slide. We need to elevate our customer experience, which is our third growth engine. And of course, experience spans across every interaction that our customers have with us from the digital channels to our packaging, but to our stores. And every one of them is an opportunity to inspire purchase, and that's why we have to treat them with a lot of care. But I want to focus today on our stores. Why? Because it's our real strength. We have a network that connect us with consumers -- with customers every single day. And we create meaningful connections with our sales associates, and that is a real strength. But all our studies and research told us that we can create a warmer, more engaging and a more immersive experience in our store with a clear zoning, richer storytelling, making discovery of our collection easier, making it more inspiring so that consumers can explore more of Pandora and turn that inspiration into purchase. We have also been rolling this year our digital displays across more stores so that we can showcase those collections on the front of store. And another thing that is important is that we are providing more styling ideas. And I want to spend a little time on style because style is now very central about how Pandora shows up. We do create jewelry that customers can wear in many ways, and we are making that versatility visible and desirable. We are not only training our sales team on style, but we are also displaying inspiring looks into the store and using these new digital screens to show how the piece can come together in a different way. At Pandora, we are not dictating how you wear jewelry, but we do need to help our customers choose how to wear it in their own way, in their own style. Now this is not just words. We've been testing this approach in stores in Italy and in the U.S. The results are encouraging in the commercial metrics, including conversion, but also in feedback from consumer surveys about the discovery of our jewelry. We are making discovery easier, and we are inspiring consumers to explore more of Pandora. So with that, let's turn to Slide 29 in the deck. Now let me pause here a little bit a moment because I have been sharing quite a lot of things with you. I've taken you through the 3 reinforcing engines behind our first priority, and this is about reenergizing growth through design, brand and experience. But of course, we have a second priority and it's ensuring that we are diversifying our metal mix to protect our long-term profitability with platinum plating as a key response to the rising silver prices. So let's spend some time on that. And please, let's go to the next slide. In February, we introduced you to platinum plated jewelry on our signature metal alloy, which, over time, will replace part of our existing white metal portfolio. This supports profitability, but it is also a very compelling proposition for customers. Why? It brings platinum, a precious metal into a more accessible format with durability for everyday wear. You may remember that we started with a pilot in the Netherlands in July this year, and the results are giving us confidence in the consumer acceptance of platinum plated jewelry and is reinforcing our view that consumers don't come to Pandora to buy grams of metals, but they really come for the design and the brand. So based on that, we have now expanded both the range of products, but also the availability of our platinum plated jewelry assortment, and we are reaching most of our largest markets. Again, the early customer response is very consistent with what we saw in the Netherlands pilot. The customers are valuing the lasting shine and also the affordability of precious metal jewelry. So this is giving us now confidence to move forward with an innovation that consumers value, but has also a strong economics for Pandora. So let's move into the next slide, please. Now -- of course, we have been working with platinum plating for more than a year. Now what is new today, and you can see a little bit of animation on the slide, is that although our work with this material has been focusing on transitioning some of our portfolio, we are opening now new design possibilities for Pandora with this new material. The material properties are allowing us to do more delicate constructions that would be difficult, even impossible with the product that you see on the screen to achieve in sterling silver. So this is also giving us greater creative freedom and again, customers more choices. What you see here is our new celestial chain and it's a good example. The silver, sterling silver softer properties would not have allowed us to create this bracelet. So platinum plate is valued by consumer, opens up new design possibility and it protects profitability. So on that, it's a good time to hand over to Anders, who will talk you through the transition plan and the EBIT margin framing for not only 2027, but beyond that.

Anders Boyer-Søgaard: Thank you, Berta. And then let's go to Slide 32. On the slide here, you can see a high-level overview of how the transition is progressing over the next few years. We have been working with and preparing for this transition now for more than a year. And as you can see on the slide, we have recently expanded our pilot testing from the Netherlands to a broader geographical coverage to finalize our go-to-market model before starting the transition in '27. Some of you may have noticed that the size of the silver assortment that switched over to platinum already in '27 is a bit lower than what we previously indicated, and that's a good reason for that. The initial plans were based on a silver price of $82. And at that price, it made sense, so to speak, to force through the transition with all levers of our supply network, both internally and externally, even though the costs are higher externally. With the price of silver declining and with Pandora now being 90% to 100% hedged in 2027 at a much lower price, it makes more financial sense to optimize the transition pace and thereby cost by rebalancing how we use our external supply network capacity and capability. And therefore, we can take a more measured approach to the transition without a negative financial impact and to a larger extent, drive the transition in line with how we ramp up our own internal platinum plating capacity. The transition of the relevant silver assortment to platinum plating is then expected to accelerate in 2028 and be completed by 2029. Then finally, as we have communicated before, the journey won't be done by then. We need to continue to optimize and innovate our offering after the initial transition on the existing special metal alloy platform by continuing to drive efficiencies and reduce our exposure to silver. As we said back in February and in May for that matter as well, this part of the optimization will take place afterwards, and I'll speak a bit more about that on the following slide. So overall, from today, you should see it as a, let's call it, 2.5-year journey to complete the transition of the relevant silver assortment to platinum on the existing metal alloy platform. And then after that follows a period of optimization and further innovation to support the margins. So now let's have an update on the margins on the next slide, please. On this slide, you can see an updated version of the margin bridge we initially presented back in February, and it builds from '26 to the left, then to initially '27 and then from '27 and into the midterm. And let me start with the key conclusion that you should take away. What you see here means that after the transition, Pandora will remain a structural high-margin company. And you can see that on the slide to the far right here, where we show that we expect to deliver more than 23% EBIT margin in the midterm. And tied to that, our free cash flow generation will also remain unchanged. So this means in essence that there will be no fundamental changes to our business model and that our strong financial algorithm is intact. The other conclusion you can take away from the slide is that the top-down plans that we presented to you back in February has now been confirmed and validated through extensive work during the last 9 months. This doesn't mean that all is signed and sealed, of course, but we know enough to confirm today that there will be no fundamental changes to our business model. So you will probably ask us on the when, what is the midterm exactly. So there's a couple of things to understand here. As I just said, the transition to platinum plated jewelry initially takes place on the existing signature metal alloy platform. And we make the majority of the margin rebuild back towards above 23% based on that. Part of the final margin ramp-up after that is linked to further innovation on this signature metal alloy platform. And this is part of what's set in the bucket that we call crafting optimization and material innovation from the margin bridge back in February. And this last piece can only be implemented after the transition to platinum on the existing platform. But we know what to do, but the implementation has to be sequential. And for commercial reasons, we don't want to go into detail with what we exactly have in mind. So long story short, think of midterm as 4 years, maybe even 5 years from now. And we will, of course, talk more about that at the CMD next year in '27. You can see in the bridge here that we have updated the endpoint, as I just said, to more than 23% margin compared to more than 21% previously. And that extra 200 basis points comes mainly from tailwind from lower commodities compared to when we set the target back in February. There's a few other moving pieces, but that's essentially the story. So you can also see on the slide here that the margin target is based on silver price of $50, gold at $4,000 and platinum at $1,500. Now if we turn to '27 specifically, the starting point for the '27 thinking is starting -- is the 2026 EBIT margin guidance of 22.5% to 23%, as you can see all the way to the left in the bridge. And then if you follow me through the bridge, then first, we adjust for the 100 basis point net one-offs this year in '26, which is mainly the benefit from tariff refunds that we have this year. And then based on the hedged prices of our commodities, we will see around a 600 basis point headwind next year. And then based on the platinum transition, we will see around 100 basis points of margin uplift next year. During the last 9 months, we've also spent extensive time discussing strategy. And as you can see what we just presented, we do see a clear need to step up the consumer experience in our stores, and we will invest behind that in 2027. That will, of course, support growth over time. And that's 1 of the reasons that you can see an offsetting operating leverage bucket to the far right in the bridge as well. And these investments include the flagship fleet, continued rollout of digital windows, visual merchandise and displays, trays, et cetera. This takes us to an underlying EBIT margin of 15.5% to 16.5% for next year. Then there will be certain one-offs associated with the transition next year. And then on a reported basis, that takes an EBIT margin to 14% -- between 14% and 15% next year. A lot of numbers, I know, but I hope that it makes sense. I also know that some of you will ask about cash returns anyway. So let's talk about that upfront here now. As you know, our capital structure policy is a leverage in the range of between 0.5 turn and 1.5 turns of EBITDA. And with EBIT margin guidance in '27, we are likely to be a bit above that leverage range, assuming that we continue paying a dividend in 2027 also. However, beyond '27, as leverage will come down in line with the transition, you can be assured that there will be no change in our policy to return all excess cash back to shareholders and a large part of that through share buybacks. Exact timing of when we reinitiate the share buyback is still too early to communicate. But you can probably do a bit of back of the envelope math and see that potentially it could be during 2028, although still at a relatively lower scale. And on that note, I'll hand it back to Berta.

Berta De Pablos-Barbier: Thank you, Anders. Very good explanation. As you have probably already read, and let's go into the next slide, please. You probably know that we opened a new crafting facility in Vietnam, and that happened on the 1st of October. And when we are actually combining our current facilities that we have in Thailand, we now have total manufacturing capacity of 170 million pieces of jewelry per year. This is second to no one globally. And importantly, with the further investments that we have made this year, we also have a very flexible supply chain. And what I mean is that we are now -- are able to produce interchangeably between platinum plating, gold plating, but also solid silver and solid gold. So that really leads me to the closing remarks. So let's go please to the next slide. So I would just like to wrap up before we open to Q&A. We are very pleased with our quarter 3 performance. We have delivered our growth in a tough environment. We know that we are not yet where we need to be. Pleased with the results. We are making progress, but we still have work to do. We have sharpened our choices. We have defined how we will continue to create great demand through design, brand and experience. The goal is very simple. We need to attract new customers by giving them more reasons to choose Pandora, and we need to keep our existing customers coming back again. Execution is underway. We have more to come in 2027 and beyond, and we will be sharing more in person next year in our CMD. We have successful testing this year on platinum plated, and this is giving us confidence to roll it out at a scale in 2027, which is really taking Pandora to a truly multi-material offer. This is bringing new design possibilities, a compelling consumer proposition and as Anders took you through, a stronger economics. And as Anders also said, we expect these plans to return Pandora to a strong financial algorithm, which consistent high-quality growth, high EBIT margins and a very strong free cash flow generation. Our direction is clear, and now we are really focusing on very disciplined execution. Now of course, you want me to open to Q&A now, and we are going to do that in a second, so bear with me. First, I would like to welcome Paulo Garcia to Pandora. And Paulo has been with us since the 1st of October. Actually, you were with -- started in Thailand, getting understanding our crafting there, and you will officially assume the role of the CFO from the 1st of December. So I'm very excited, of course, to have Paulo on board. He's bringing experience from some of the world's large consumer goods companies and I am sure he will get a chance to meet all of you in person in due course. But of course, I also have to sadly say goodbye to Anders Boyer. Anders, you've been with Pandora since 2012. You've been a CFO since 2018. And I think there is no doubt about the legacy that you're leaving behind. Pandora, it is a very different company when you first joined. I've been very lucky, very lucky, lucky enough to work with you for the past 2 years. Different words to define you, so always difficult to choose some. But of course, your integrity, your work ethic, the results orientation, attention to detail, they are a really great credit to you and Pandora. And yes, every decimal counts, as you always remind us. So on behalf of the entire organization, I really would like to congratulate you on your retirement, say a huge heartfelt thank you and no doubt you will be missed.

Anders Boyer-Søgaard: Thank you so much, Berta, for those kind words. And there are many things that I have enjoyed about being a CFO over the past 20 years. But 1 of them has no doubt been the interaction with all of you on the call here and in the room, of course, but on the call with investors and analysts. I've always enjoyed these calls and the many meetings and conversations that we've had over the years. I know they have sometimes been challenging, often thought provoking and quite frequently quite good fun as well. And what I have particularly valued is actually the quality of the dialogue that we've all had because all of you on the call here, you see many companies, you bring different perspectives and experiences and you've never been shy about asking difficult questions, and maybe we'll get to that in a second as well. But that has challenged me. It's challenged us as a team. And I genuinely believe it's actually helped make Pandora a better company. So in a few weeks, I will step away from executive life and begin the next chapter in a nonexecutive capacity. And I'm really looking forward to that. But I know that I will miss the interaction with this community on the call here. So I simply want to say thank you. Thank you for the dialogue, the challenge and also the many enjoyable conversations over the past 8 years. It has been a real pleasure, but it's not fully done yet because now we can go into the Q&A.

Operator: [Operator Instructions] The first question is from the line of Thomas Chauvet from Citi.

Thomas Chauvet: Can you hear me?

Bilal Aziz: Thomas, we can hear you.

Thomas Chauvet: Congratulations, Anders, for leaving on a high note. Thank you very much for all your help. We'll miss your great professionalism and all the best for your next projects and nonexec roles. My 2 questions are as follows. The first one on the outlook perhaps for the jewelry industry. I mean, thanks for a very comprehensive update, but I hope you managed to accelerate that growth in the medium term. But nearer term, could you perhaps share with us your outlook for global jewelry demand in the next 12, 18 months? We've seen several of your peers slowing down significantly in both the affordable and the fine jewelry segment, particularly in the U.S. as opposed to Pandora, which has been quite resilient in Q3. So that's my first question. The second one on consumer adoption of platinum plated. You've indicated encouraging feedback from the pilot in the Netherlands. What can you share in terms of KPIs that have been maybe more positive than your expectations? Have you tracked, I don't know, conversion, UPT, average basket, returns, et cetera? And curious to know how your sales associates are handling situations where consumers may still be asking for the legacy silver product, if I can say.

Berta De Pablos-Barbier: Yes. Thanks, Thomas, for the questions. I think I'll take both. Listen, on the U.S., specifically on jewelry, I think you mentioned, we did see in quarter 3 that it was a moderate growth. Actually, it was a growth of about +5% against some tough comparison the year before. What we see is actually is mainly growth driven by value. We see similar things in some of the other regions as well. For example, in the U.K., it grew about 10%. And again, still mainly on value. So that's something that we are seeing and driven still by the high-income consumers. The outlook on the jewelry category is positive. Jewelry is a resilient category. So we are cautiously optimistic about the years to come for the category. On platinum plated, everything that we have learned for the last 18 months that we've been talking to our consumers about platinum plated is being confirmed. And what is becoming very clear is that when they can compare the same product of silver and platinum plated, the benefit about the lasting shine, the fact that it's a product that is going to be -- have more durability is a clear benefit for them, and that is coming as a clear benefit. The second is affordability, and that's when they can compare 1 versus the other. But what we are seeing as well with the new introduction of charms that are starting from October, and again, early days is that the consumers are not making any difference. And they are basically choosing us because they like the design, they like the meaning, they like the symbol and they are getting platinum plated. So only 1 month of sales, but those platinum plated charms are actually between the top sellers so far on the new holiday collection. And then last but not least, I think you've seen this bracelet that I just showed you is actually an intriguing design and a good innovation. So that is, of course, attracting consumers into the purchase. I only showed the white metal one, but we also have it in gold plated. So it's a good example about doing plating in white and in gold, and they are both having so far very good results. So encouraging signs.

Operator: The next question is from the line of Zuzanna Pusz from UBS.

Zuzanna Pusz: So I'll stick to 2 as well. Maybe -- well, mine will be a little bit more general because I'm kind of having a look at Pandora, I mean I had previously covered it, and there's definitely a very big difference in your product offering, which is quite impressive. So I was just wondering, it does seem like you're trying to target a much broader range of consumers. So would you be able to maybe give us any color on -- of course, I know it's early days, but in terms of who is maybe the new consumer you're attracting with the new designs and sort of new aesthetic of the product. I don't know maybe if there's any comment you can make on income, on age or anything like that, just because it does feel like certainly, you must be trying to capture a wider range of consumers. So that's my first question. And then secondly, also related to that, I mean, the new demand model, is there any change in the number of SKUs you're targeting within collections? What could be the implications on gross margin or your production, anything like that?

Berta De Pablos-Barbier: Yes. Thank you. So very good questions. So on the first question, what we are seeing is that, first, we are actually getting a lot of returning customers. And by that, I mean that customers that used to purchase Pandora 3 years ago, they stopped coming to Pandora because we were not offering more choices to them and then they are coming back. And that is actually very, very important, and that is our big -- is slightly bigger than our new customers. But second, and very close, by the way, in percentages, we have the new customers. So what we see is that on the new designs, we are getting a higher percentage of the new customers than on the more traditional one. In terms of income, there is no difference. What we are seeing a difference is mainly in terms of age. So we are attracting higher Gen Z. And then the second group that we are attracting is millennials. So those are the ones that we see over-index when we are actually getting all these new refreshed designs and new collections out there. That was the first question. And the second question was.

Bilal Aziz: SKUs.

Berta De Pablos-Barbier: Yes, sorry, about SKUs. Yes. So the objective is that we do not increase the number of SKUs, but it's more that we get a more productive assortment. So we believe that we have opportunities to rationalize some of our assortment today to focus on the best sellers and the high productive, and that is actually giving space for the new collections to come. So no increase in assortment.

Operator: The next question is from the line of Lars Topholm from DNB.

Lars Topholm: Anders, good luck going forward and Paulo, a warm welcome. A couple of questions from me. So the first one is in your 2027 EBIT margin bridge, I don't see any effect from efficiency gains. I don't see any effect from FX tailwinds and also don't see any effects from channel mix changes. So I wonder if you can comment on those 3 specific factors.

Anders Boyer-Søgaard: All right. Thank you for that question, Lars, but it's a super fair question. The same goes from '26 -- and the same goes in the bridge from '27 to 2030 because, of course, underneath the bridge here all the way from this year on to 2030, there's all the business as usual movements, if you like, from pricing, channel mix.

Lars Topholm: And sorry to interrupt, but you faded in the beginning, so I didn't hear the first part of your answer.

Anders Boyer-Søgaard: No problem. But thanks for the question, Lars. And you're right, in the bridge here on Slide 33 in the deck, there's obviously a lot of sort of business as usual building blocks, if I can call it that, pricing, leverage, investments in the business, salary increases and all of that. And the way to think about that beyond what we have called out here specifically in the bridge, think of that as net zero, both between '26 and '27 and '27 in the midterm. We do have a draft plan for '27 and in the midterm as well, sitting with us here at Havneholmen, but we will only go into more details on that in the February announcement next year.

Lars Topholm: That's fair enough. And then, Anders, you talked about the tricky questions you get and how much you enjoy them. So I would like to ask what was the greenhouse gas emissions from gypsum in Q3? No, I'm kidding, I'm kidding. That's not my question. My question is, you mentioned that due to the law of large numbers, Japan will, of course, not continue to grow 100% forever after. And I think you used it as an argument for Japan contributing less to the absolute group growth in Q4. But isn't it fair to say that while growth might slow down, Japan's weight on the group numbers equally increases. So why should we think any different from the contribution -- of the contribution from Japan?

Anders Boyer-Søgaard: Yes. You're absolutely right that the absolute revenue goes up. So in -- if you compare to our '23 as an example, revenue in Japan is up 5x sort of around that from '23 to '26, that's including the network expansion, not just like-for-like. But we think that the like-for-like that we saw in Q3, we think it is just too much to bank into a plan that is going to be delivered in Q4 as well. So sequentially, we do think that we have to be a bit more cautious, even though the absolute revenue is still up year-over-year, but the more than 100% growth that we delivered in Q3, we don't want to bank that into a Q4 plan. That would just be too much to hope for.

Lars Topholm: Okay. And then just jumping back to my first question, Anders, if I may. So you said that I should consider everything else net zero, but even where FX is today, could you single out what impact you see from that next year? And maybe if now I mentioned some of the positives such as network change and efficiency gains. Can you single out some of the factors that are not in your bridge, which makes all this net neutral?

Anders Boyer-Søgaard: Yes. I'm just looking into the FX piece. And I think that's based on the spot rate, it was Thursday, Friday last week, I'm looking at Bilal here. The net impact next year would be at 10 basis points drag on the EBIT margin in '27 from FX. So give and take a 0, specifically on that one. And without going into too much detail, I think it's a bit too early on '27 yet, but we will continue opening up new stores next year. So there will probably be a tiny bit of margin support from that one. But net-net, in the big scheme of things, the business as usual, if I can call it that building blocks apart from the more mechanical that we have in the bridge that we showed here today, think about that as plus/minus 0.

Lars Topholm: And I'll let you escape the gypsum question.

Operator: The next question is from the line of Daria Nasledysheva from Bank of America.

Daria Nasledysheva: This is Daria from Bank of America. Just following up on the question on 2027 guidance just now. Can I double check if there are already assumptions on leverage, deleverage or any extra investments? And what like-for-like is baked into the guidance? So this is just like purely mark-to-market that exists right now? And my second question is, when talking about your European performance, you mentioned you saw sequential improvements in the U.K., Italy, Germany, which have been quite weak for a while. How sustainable is that? And how much of this is comp driven versus fundamentally you're actually seeing the strategy working in more mature markets as well?

Anders Boyer-Søgaard: It's Anders. I can take the first question. It is 14% to 15% EBIT margin on a reported basis next year is a real target. It's not just a mechanical update. So even though you can't see that in the bridge, then behind that is assumptions on all the other levers that obviously impacts margins up and down next year, including our internal thinking about growth, inflation, cost efficiencies, channel mix and FX and all of that. But we will only go into the details on all of those assumptions in February when we give a more formal guidance for 2027. But it is -- the 14%, 15% is kind of a real best guess on what the number will look like next year.

Berta De Pablos-Barbier: Daria, I'll take the second one. When we look at Europe, we are seeing different things. So if I think about our more mature markets, so the U.K. and Italy, we are seeing a sequential acceleration. So directionally, it's becoming better. And when we look at the drivers of that performance, we are seeing that is some of the things that I've been sharing in the call. So it's the new demand model coming to life. So all indicates that this is going to be a sustainable and sequential growth over time. And we have achieved these results while we were discounting less and reducing the days of our promotion. So I think that is encouraging. In France, the situation is still concerning for us. So we still need to look at that. And Germany is going on the right direction as well.

Operator: The next question is from the line of Kristian Godiksen from SEB.

Kristian Godiksen: Also I limit myself to 2 questions to start with. So again, congratulations, Anders. It's been a pleasure interacting with you and look forward to see you again on the road show. So the 2 questions will come here. So first of all, if you could put some more flavor on the consumer reception on the platinum plated products. So both in terms of what have been the dialogue with consumers in relation to the certificates that you've been waiting for and between preferences -- between the metals and then also whether you've decided on whether to do higher prices for the silver products. And then as you mentioned, that the platinum plated product has been among the top sellers in Q3, whether you expect there could be any potential positive impact on the like-for-like? That would be the first question in terms of the platinum plating. And then secondly, just on the margin in terms of the step-up in like-for-like in terms of the investment in the stores, what could we expect going into '28 as well on the impact on that as well?

Berta De Pablos-Barbier: I'll take the first question. So on the platinum plated, in addition to everything that I have just said on what the consumer are valuing about the platinum plated product. I think on the question about whether on the best sellers, will it have any impact on quarter 4, the answer is no. What we are saying is that we are talking about 2 or 3 [ SKUs ] that are in platinum plated, but the impact on the total sales are not going to be important for the quarter 4 sales. Regarding the pricing, what we learned from the test in Holland, if you remember, we did an in-store test and then we did an online test. And then we actually tried different pricing of what will be the price of silver and the gap that will be a good place for the customer to continue to buy both silver and platinum plated. We have established on our bracelets, and I'm only talking about the majority of our bracelets here that EUR 10 is actually something that the customer was willing to pay. That is the pricing strategy that we have implemented on the rollout in quarter 4. And again, very early signs. Let's see, we have to go through our biggest season, but the results so far are positive, encouraging signs there from the results, but also from the feedback that we are getting straight from our stores.

Anders Boyer-Søgaard: And on the investments in consumer experience, Kristian, it's too early to be super specific, but high level, think about it like this, that the step-up where it impacts the margin, that's a 2027 thing, and that's why we called it out. And then in broad terms, it's going to sort of fund itself after that, given -- based on a like-for-like pickup. But -- so we called out specifically in '27 because we see that, that will be a topic anyways when we announced the guidance in February. And then between '27 and '30, as you can see in the bridge as well, it's going to pay back itself, so to speak, through leverage. But it's mainly a '27 story is the way to think about it.

Kristian Godiksen: Yes. Okay. And then maybe just a follow-up on the silver prices, or sorry, on the silver products compared to the platinum plated products. So if there is a preference between the 2 metals for some consumers, is it still a consideration that you want to keep the silver products as well for the same design variations? And then just maybe a household question on the price premium. Is that included in the guidance that you want to keep silver products at a premium price to platinum?

Berta De Pablos-Barbier: Yes, absolutely. It is all included in the guidance. And just a clarification, this doesn't impact all our silver products. We are only keeping those on the ones where we learned the consumer wanted the choice. And basically, very simplistically, what the consumer told us is that on the bracelets, I still want to be able to choose whether I want to pay more for silver or less for platinum plate that I have the shine, durability, longer shine. On the charms, the consumers basically told us it doesn't matter. So I just buying this symbol with this design I like, and that's why we are not seeing any difference. So the doubling is only happening on the bracelets.

Operator: The next question is from the line of Anthony Charchafji from BNP Paribas.

Anthony Charchafji: It's Anthony Charchafji at BNP Paribas. My first question would be on regional expansion. In your strategic update, you didn't mention much potential opportunity in APAC to expand. I was just curious if it's something that might be coming or addressed rather in the Capital Market Day early next year or if it's something that is not a priority in the coming quarters? My second question is really just a clarification on the platinum plated price. I didn't understood if the delta versus silver would come with platinum plated being introduced at the same price of silver and then silver product being increased or if platinum plate is being introduced just in Europe below the current price, just to think about the price mix into the rollout.

Bilal Aziz: Thanks for the questions, Anthony. Asia, definitely a big and important strategic topic for us. To your point, we'll get back to you next year on that at the CMD and talk you through our thought process there.

Anders Boyer-Søgaard: And on the other question, Anthony, the way it works is that the platinum plated jewelry will be introduced at the existing silver price. And then if there's a duplicate on bracelets, as Berta just explained, that would then be at a higher price.

Operator: The next question is from the line of Jon Cox from Kepler Cheuvreux.

Jon Cox: Jon Cox with Kepler Cheuvreux. A couple of questions for you. You mentioned that pricing was a driver for the improvement or value was the driver for the improvement in the U.K. and the U.S. Just wondering, looking ahead in the next couple of quarters, I guess your pricing will fade to a certain extent and you have to start relying more on volume mix. Is that a correct assessment? Second question, just on the platinum and there's a bit of a delay in doing it, and I understand what you're saying, and I think it makes total sense. Just when you're done, let's say, 2028, what the split would be with the overall collection. I think originally, you said 50% would be platinum. And then if you can just give us the split. And then maybe just a question on -- originally, you have a goal for organic sales growth sort of high single digit. Part of that building block was the 4% like-for-like, which we've obviously hit today. Just wondering, you've been so kind to give us sort of an outlook for maybe free cash flow and margin down the road, and that's 4 or 5 years down the road. Just wondering when will all these new initiatives hit sort of critical mass and we have some of the examples of the strong growth of some of the new ranges to actually ensure that you are at that 4% like-for-like on a consistent basis? Are we talking a quarter or 2? Are we talking still quite a few years?

Bilal Aziz: Thank you very much for the questions. If I take the first one, and apologies if there was a slight misunderstanding. I think Berta was initially referring to the market data. In terms of our own performance, pricing was a very little driver, particularly in those markets that you mentioned. If anything, we saw more volume contribute sequentially, at least for us on a group-wide basis in that sense as well. So apologies if that was slightly misunderstood. On that, I'll hand over to Anders, please.

Anders Boyer-Søgaard: Yes, there was a couple of questions in there. One was about the share of business for the platinum plated jewelry once the transition is done. And you're right that we have previously said about that at the end of the transformation, think about this at roughly 50% of revenue will be from platinum plated. And I think directionally, still thinking in that way, it might be a bit lower because we do see that yellow gold plated keeps growing very fast. So that could be a bit of mix impact there. But it's going to be a very sizable part of our total revenue once the transition is done. And then on price versus volume, yes, definitely, it is our -- pricing will always be there. We need to do bits and pieces every year to help fund the P&L, fund salary increases, inflation, et cetera. So there will be -- continue going forward, be some price increases coming through every year. But this is a volume business. So the key driver over the cycle in the midterm of revenue growth has to be volume. That's very clear.

Berta De Pablos-Barbier: Yes. And to build on that and on the market, the data that I was citing was markets, it was Bank of America data for the U.S. jewelry market. So it's the total category. And totally, just to reinforce what Anders was saying, what I've been taking you through is the importance of bringing new customers and the existing to come back, and this translates into volume. And that's what we are about. It's about making the brand more desirable to more people and therefore, bringing more volume.

Jon Cox: And the top line question, just the midterm organic high single-digit guidance?

Bilal Aziz: We'll get back to you next year. Yes. I think next year, we'll flesh that out in much more detail. So we'll give you much more guidance on that next year, please. But thank you.

Operator: The next question is from the line of Andre Thormann from Danske Bank.

André Thormann: Just 2 questions from me as well. First of all, Anders, apologies if I didn't catch all the parts in the bridge towards 2027. I just wonder if you can help quantify these different elements. I think I caught some of them, but not all on the EBIT margin. And then second, in terms of the midterm year or what to call it that you now say is in 4 to 5 years. Is it correctly understood that, that was earlier initially? Have it changed? Or is it the same?

Anders Boyer-Søgaard: Thanks for that, Andre. Yes, on the numbers between 2026 and '27 EBIT margin, if you have the bridge in front of you, then very quickly, the one-offs are give and take 100 basis point drag next year. External headwinds, 600 basis points down, transition of assortment, +100 and then strategic investments, give and take, -100. That's the ballpark the numbers. Yes, you're right that the transition speed specifically in 2027 is lower than what we said earlier this year. And it's -- by the way, it's quite mechanical. And when we -- silver prices were at $82 when we originally came with the plan 9 months back, it makes sense to, in a way, force through the transition even using excessive sort of external capacity, even though that it is much more expensive than producing in-house. Now the good things have happened that silver prices have come down, and that means that we can make the transition at a more measured pace without a margin impact or very little margin impact. So in a way, you see this as a good thing.

Berta De Pablos-Barbier: To say we do the transformation with serenity.

Operator: The next question is from the line of Wendy Liu from JPMorgan.

M. Liu: It's Wendy Liu from JPMorgan. I have 2. Number one is, I was wondering if you can talk a bit about the divergence between Fuel with More and Core. In particular, I do see that Essence is also coming back to double-digit growth. I think you mentioned about strong perception of yellow gold growing fast. I was wondering what is overall the growth of gold plated products. I think it's like 25% of your mix. And what do you see this category growing going forward? And then secondly, I was wondering if you already know the sequence of gold -- sorry, platinum plated rollout for next year. Is this going to be a bit more second half weighted? Or is it going to be evenly growing across the quarters?

Berta De Pablos-Barbier: Yes, I'll take the question. Yes, you're absolutely right. I think yellow gold plated continues to grow. So today, it's about 25% of our business. And in quarter 3 was even slightly higher than that, and we continue to see growth there. That is actually you're seeing it in Essence, which is very driven gold plated, Talisman, which is very driven gold plated. But also when we see in some of our playful collections where we have launched charms that are also in gold plated, they are having great traction. And we are seeing across categories. So it can be rings, or necklaces or bracelets. So good traction there on yellow gold plated. The consumer is speaking to us and they like it. Interestingly enough, we're also seeing increase on the two-tone. So where we are actually mixing yellow and white metal, and that is also growing as well in our business. Regarding your second question, the way that we are transitioning in Pandora, we have 5 drops in the year. And then we are introducing in every drop, we are introducing the platinum plate. So it's not a big bang. As we introduce newness, we are just bringing the platinum plated with different pulses of introduction throughout the year.

M. Liu: Got it. And is this going to be more second half weighted versus first half in terms of how you plan the 5 drops?

Berta De Pablos-Barbier: No, we are starting from quarter 1, quarter 2, quarter 3, quarter 4. It's just a very proportional introduction because, again, as a reminder, we've been working on this transition for a year now. So our lines are ready. They are already producing and already for this quarter, although the volume is small, as I was saying before. But yes, we are ready to start from early next year.

Operator: The next question is from the line of Freddie Wild from Jefferies.

Frederick Wild: First of all, on the brand expansion you've outlined. Historically, when you introduced sort of new product ranges, they came with a slightly higher mix on top line. So could you help us think about the split of sales growth going forward post the strategic update into volume and mix components as well? And then secondly, on the transition speed, you previously talked about, I think, 60% of silver ranges being transitioned by the end of '27 and 80% by the end of 2028. Can you update us on the speed with which we're going to see it in '27 and '28, please? And sort of beyond that, are you experiencing any unexpected challenges in manufacturing behind this maybe a slight delay to the realization of that midterm margin increase?

Bilal Aziz: On the first question, I don't think you should anticipate the mix of the new collections or introductions to be drastically different from what we've done in the past. The price points will naturally vary between entry price to our classic price ASP as well. So I wouldn't anticipate much difference.

Berta De Pablos-Barbier: Yes. I agree. I mean, as I was insisting in the beginning, we are an accessible brand. So we will continue to have an assortment across the different price architecture, and we are building the assortments with that price architecture, absolutely. On the platinum plated, I'll start and maybe, Anders, you can finish if there is any impact on the bridge. But I think Anders said before, really, we are adjusting the pace because we can. I think the silver price is not obliging us to go faster. It is a transformation in our plants in Thailand and in Vietnam. We are building capacity. But if you have more time, you don't need to rush this implementation. We are also having access to great OEM out there. But every time you go to 1, of course, you need to train, you need to bring the quality standards. So that takes time. So as I said, we are adjusting the pace because we can.

Operator: The next question is from the line of Kristian Godiksen from SEB.

Kristian Godiksen: A couple of follow-ups here. So I was just wondering maybe if you could -- the incremental step-up in the EBIT margin from the more than 21% to more than 23%. Is that solely due to the strategic investments and more leverage? Or how much does it -- does the lower commodity prices play into this? And on the commodity prices, maybe if you could help a bit on what your new updated sensitivities will be for the 3 metals beyond 2027? And then thirdly, just if you could maybe comment a bit on the slower transition to the platinum plated products, how should we think about net working capital going into next year as well?

Anders Boyer-Søgaard: All right. Thanks, Kristian. That sounds like CFO questions. On the first one, yes, the upgrade from above 21% to above 23%, think about that as mainly mechanically driven by the lower silver, gold and platinum. That's the main storyline there. And on the sensitivities, yes, now on silver, we are this year, let's call it, around 20 basis points of sensitivity per $1. And then that's going to be, give and take, 14 basis points next year. And then ultimately, once the transition is fully done, including what we call the innovation on the core, then think more about this as 5 basis points of silver price sensitivity per $1. And then on gold, there we usually talk about the sensitivity per $100 of change. That has been going up step-by-step over the last several years because yellow gold plated has become a bigger and bigger part of our business. This year, think about it as around 8 basis points, sorry, 7 basis points of sensitivity and then that increases to around 9 given that we expect the yellow gold plated share of business to keep going up a bit. And then finally, a lot of numbers here on the platinum plated. Of course, the sensitivity today is basically 0. Then you think about it as 3 basis points next year per $100 of change there and then ending at around 8 in the midterm. So happy to talk you through more of that offline if needed. And then on net working capital, I think in broad terms, think about it as this that the punch in the nose from higher silver prices, we take that this year, the higher commodity prices. So inventories increasing towards the DKK 8 billion level this year. And then give and take that level again next year, maybe a little bit higher, but for all practical purposes, that same level. And then step by step after '27, we will see a decline again and thereby a free cash flow upside in the years after that. As we said before, then in the midterm, we do see inventories coming sort of back towards the level where we have been historically, maybe probably not fully down there, but will decline again.

Operator: As there are no further questions, I'll hand it back to the speakers for any closing remarks.

Berta De Pablos-Barbier: Yes. So thank you. Thank you all for your time. I feel that we've given you a lot to take away, but I'm hoping that where we are taking Pandora is very clear and the way that we are planning and capturing the demand has become across very clearly as well. So of course, we are pleased with our third quarter performance. We have more work to do. So we are not planting the flag yet as we are still climbing. And with that, I just wish you a very good day.