Pandora reported sales ahead of forecast thanks largely to its performance in the U.S., but economic and cost tailwinds look set to challenge the world's biggest jeweler.

Jewellery maker Pandora said on Wednesday that its growth and profit margin this year would be lower than last, forecasting sluggish European demand but stronger consumer sentiment in its biggest market,

Pandora, the renowned jewelry company celebrated for its customizable charm bracelets, recently released its financial results for the crucial holiday shopping quarter. The Danish jewellery maker, announced on Wednesday that it anticipates lower growth and profit margins this year compared to last.