Shares in Danish jewelry maker Pandora fell sharply on Friday after the company reported softer sales in its key European markets, Reuters reports. The drop in Europe was only partially offset by stronger demand in the United States.

The stock slid 12.6% in early trade, extending a 36% decline since hitting a record high in January. Second-quarter revenue came in at 7.08 billion Danish crowns ($1.11 billion), slightly below analyst expectations, with comparable sales growth slowing to 3% from 6% in the previous quarter.

Sales fell most in the UK, France, Italy, and Germany, while US tariffs and higher commodity prices continue to pressure margins. Pandora said price adjustments and cost-cutting will help offset the impact, and it maintained its full-year outlook of 7–8% organic sales growth and an operating profit margin of about 24%.