Sonos is elevating costs this yr to make up for tariff bills

Sonos plans to raise prices throughout its lineup of merchandise later this yr with the intention to reduce 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, nevertheless it stated that it is evaluating any adjustments it would have to 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 stated that it’s going to make investments on diversifying its geographic footprint and increasing its presence in markets that characterize solely a small share of its income right now to drive progress.

A Sonos spokesperson confirmed that not the whole lot within the firm’s lineup will go up in value, nevertheless it feels like merchandise in its primary product classes will get costlier. We do not but know the specifics on what merchandise are getting costlier but.

The corporate took steps to diversify its provide chain final yr, which led to its manufacturing amenities within the two aforementioned nations. It now solely depends on Chinese language plans for merchandise sure to the US for a restricted variety of equipment, resembling speaker stands. Nonetheless, for the third quarter of 2025, tariffs diminished 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 yr, which covers the vacation buying 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.

Total, Sonos posted a income of $344.8 million within the third quarter, which is sort of $100 million bigger than its income for the fourth quarter of 2024. It isn’t a secret that 2024 was a tricky yr 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 at first of 2025 and was replaced by ex-Snap govt 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.