Aug 11 (Reuters) - Sonos Inc shares tumbled about
17% on Thursday after the speaker maker cut its full-year
revenue forecast, citing a weakness in consumer spending on
electronic items ahead of the crucial holiday season.
Americans are spending money saved during the pandemic more
on travel and other leisure-related activities rather than on
discretionary items such as TVs and speakers, roiling the
"Changing consumer spending patterns influenced our retail
partners' outlook who in turn are taking a cautious approach to
their inventory position," Chief Executive Officer Patrick
Spence told analysts on Wednesday.
Supply chain issues, which has been a bugbear of the
industry for nearly two years now, continued to hurt Sonos'
premium offerings such as its Amp and Beam speakers, while its
newly launched speaker Ray was greeted with tepid demand.
"We were wrong to believe Sonos would be more insulated from
macro weakness given their exposure to a higher-end consumer,
and expect they will continue to face headwinds in the
near-term," Jefferies analyst Brent Thill said.
Sonos cut its annual revenue estimate to a range of $1.73
billion to $1.76 billion from $1.95 billion to $2 billion
projected previously, echoing forecast cuts at chip suppliers
including Micron Technology and Intel Corp.
Sonos now expects inventory levels to improve only after the
The company also said Brittany Bagley is stepping down as
chief financial officer and that Chief Legal Officer Eddie
Lazarus will take over the role on an interim basis.
Shares of California-based Sonos were trading at $18.96 in
trading before the bell.
(Reporting by Chavi Mehta and Nivedita Balu in Bengaluru;
Editing by Anil D'Silva)