iRobot Sales Slump As Shares Tank
iRobot sales are slumping with investors now worried over demand for the vacuum cleaner that in Australia is distributed by IXL Home, poor sales of their robotic lawn mower has also pulled down the Companies fortunes.
Analysts believe that consumers are buying cheaper robot vacuum cleaners from Amazon particularly in the US market where the Companies main sales come from.
According to Bloomberg iRobot’s outlook for the year turned murkier after the Roomba maker’s US domestic sales were once again caught up in the U.S. trade war with China, which weighed on results for a second straight quarter. U.S. sales account for about half of iRobot total revenue.
The robot manufacturer has now been forced to reduce its revenue forecast for 2019 and said recently-increased tariffs could weigh on gross margins in 2020.
This sent shares tumbling overnight to their lowest level in over a year. The stock is down about 45% since iRobot reported first-quarter revenue in April that missed expectations for the first time since 2015.
Citi said it would revisit its model for the Company after last night’s conference call, with analyst Asiya Merchant highlighting several key questions in a note, including the impact of Amazon orders shifting to the fourth quarter and growth expectations for robotic lawn mowers.