Local Sonos Sales Tank Again As Overall Revenues Fall Over 10% IKEA THe Bright Spot
Consumers are turning off buying Sono’s speakers with revenue in the last quarter falling 10.9%, ironically the only part of their business that achieved growth was the cheap IKEA sold Sonos manufactured speaker.
In Asia Pacific where Australia and New Zealand make up the bulk of their revenues sales declined to $US28.6 million from $35.57 million.
Overall, Sono’s speaker sales fell from US$539.1M to just $503M a fall of over $36M.
Sales via their custom installer dealers fell from $114M to just $84M, this is despite Sonos launching new in ceiling speakers in the last quarter.
The good news was that IKEA sales rose from $18.6M to $25.9 with their bottom end speakers fast becoming the growth market for the US brand who we exclusively revealed yesterday is looking to try and charge customers who have stayed loyal to the brand, an $80 a year subscription fee simply to use a SonosNet their proprietary network.
Competing network speaker brands including Apple, Denon, Google and Amazon don’t charge a fee to get access to open standard Wi Fi or Bluetooth networks.
One thing that Sonos did achieve in the quarter was an increase in gross margin to $46.1%.
Net income for the quarter was $80.9 million, up from $75.2 million.
Another plus was the reduction in inventories across their retail network.
This was reduced by 50% from the last quarter, and finished goods saw a 60% decrease.
During an earnings call Sonos CEO Patrick Spence claimed that Sonos will announce — and ship — a new product in a new category in the third quarter.
The new product is believed to be Sono’s headphones.
The company previously said the new product would land in the second (fiscal) half of the year, and today’s announcement has seen the new product pushed out.
Sonos management kept its fiscal-year guidance unchanged, saying that some sales had likely been pulled forward into the holiday quarter.