Sonos plans to raise prices throughout its lineup of merchandise later this 12 months so as to decrease the impression of tariffs on its earnings, the corporate has revealed alongside its financial results for the third quarter of 2025. It hasn’t listed the merchandise and their new costs but, however it mentioned that it is evaluating any adjustments it’d must its promotional methods and that it has flexibility to maneuver manufacturing between Vietnam and Malaysia as wanted. To notice, the Trump administration had imposed a 20 p.c tariff on imports from Vietnam and a 19 p.c tariff on imports from Malaysia. Sonos additionally mentioned that it’ll make investments on diversifying its geographic footprint and increasing its presence in markets that symbolize solely a small share of its income at present to drive progress.
A Sonos spokesperson confirmed that not every little thing within the firm’s lineup will go up in value, however it seems like merchandise in its major product classes will get dearer. We do not but know the specifics on what merchandise are getting dearer but.
The corporate took steps to diversify its provide chain final 12 months, which led to its manufacturing amenities within the two aforementioned international locations. It now solely depends on Chinese language plans for merchandise certain to the US for a restricted variety of equipment, corresponding to speaker stands. Nonetheless, for the third quarter of 2025, tariffs decreased Sonos’ gross margin for the third quarter by $2.1 million and its money circulate by $3.5 million. Within the fourth quarter of the 12 months, which covers the vacation purchasing season, Sonos expects tariffs to scale back its gross margin by $5 million and to take away between $8 to $10 billion from its money circulate.
General, Sonos posted a income of $344.8 million within the third quarter, which is nearly $100 million bigger than its income for the fourth quarter of 2024. It is not a secret that 2024 was a tricky 12 months for the corporate. It rolled out a serious replace that broke its app, which led to the delay of product releases because it labored to repair the problem. Former Sonos CEO Patrick Spence even stepped down to start with of 2025 and was replaced by ex-Snap government Tom Conrad.
Replace, August 11, 2024, 11:08AM ET: This story has been up to date to notice that not all of Sonos’ merchandise are getting value will increase.
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