Sonos says will need to raise prices on certain products later this year

On the company’s earnings conference call, Sonos (SONO) President and CEO Thomas Conrad stated: “We talked last quarter about the contingency planning we underwent to minimize the effects of tariffs on our business while also doing what we can to limit the downstream impact to our customers. With last week’s news, the tariff rates we were subject to going forward appeared to be 20% for Vietnam and 19% for Malaysia. We continue to work closely with our contract manufacturers and our channel partners to share tariff costs, though it has become clear that we’ll need to raise prices on certain products later this year. As these pricing changes land, we’ll monitor consumer behavior closely as well as competitive trends across our categories, and we’ll make adjustments in collaboration with our channel partners when and if necessary to ensure we’re exploring every opportunity to optimize our respective top and bottom lines. In conclusion, Sonos has the right to lead. We have the brand, the platform, the team and the permission to define what great means for audio and entertainment in the home, on the go and into the future. We lost the momentum in 2024. We’re starting to get it back, and we’re going to accelerate our pace from here.”