Pandora plans to implement a new strategy to drive demand and save money by focusing on more distinctive, culturally relevant collections as well as multi-material jewelry.

“Pandora is embarking on its next strategic evolution,” the company said Wednesday. “This includes a greater focus on design as a key driver of desirability, evolving the marketing model with stronger local relevance and calibrating the growth engines by market.”

The Danish jeweler will also replace much of its silver and gold offering with platinum or plating by the end of 2028 as a means of saving money and diversifying its product base to different economic classes, it explained. Once it has fully implemented the transition, the company will have replaced approximately 80% of its merchandise with lower-cost alternatives.

“This means that the total commodity exposure is reduced significantly compared to what it would otherwise be crafting in silver only, and at the current spot prices, the absolute commodity exposure will be reduced back down to the level before commodity prices started increasing significantly a few years back,” Pandora said. “Over time, Pandora expects these initiatives to broaden the consumer base and deepen engagement with the brand, thereby driving stronger like-for-like growth.

In the first quarter, revenue slipped 3% year on year to DKK 7.11 billion ($1.12 billion). However, it rose 2% on an organic basis — a similar metric to comparable-store sales — driven solely by expansion in its store network. Overall like-for-like remained flat. Like-for-like in Europe, the Middle East and Africa (EMEA) fell 2% as ongoing weakness in Italy and the UK outweighed solid demand in Spain, Poland and Portugal. In North America, like-for-like was also down 2%.

“Trading was impacted by lower traffic in the stores, reflecting the lower consumer sentiment,” the company said.

Meanwhile, like-for-like increased 12% in Asia Pacific and 6% in Latin America.

Profit for the three months that ended March 31 dropped 14% to DKK 942 million ($148.5 million).

So far, trading in the second quarter has been flat on a like-for-like basis, Pandora added.