Sonos forecast sales above analyst estimates for fiscal 2022

November 17, Reuters -- Sonos Inc forecast fiscal 2022 sales above analyst estimates despite backlogs for its smart speakers because of supply constraints.

According to IBES data from Refinitiv, Sonos expects to have sales of between $1.925 billion and $2 billion in fiscal 2022, above Wall Street estimates of $1.86 billion.

For the fourth quarter of October 2, Sonos said sales were $359.54 million and adjusted losses were 7 cents per share, largely in line with analyst expectations of $360.2 million in sales and adjusted losses of 7 cents per share, according to Refinitiv data.

Santa Barbara, California-based Sonos has been fended off challenges from major tech companies such as Apple Inc. that tried to enter the market for premium-priced smart speakers but have since scaled back to lower price points. Sonos introduced Roam, a sub $200 product that aims to introduce the brand Sonos to a wider audience.

Sonos expects gross margins to be between 46% and 47% for fiscal 2022, in line with analyst expectations. In an effort to mitigate U.S. tariffs, the company has diversified its supply chain away from China to include Malaysian factories. This year it has worked through chip shortages and backups at U.S. ports.

Chief Executive Patrick Spence said that the company imports its products via planes and ships, depending on the size.

Spence told Reuters that the uptick in air cargo is a factor in the company's margin forecast, and that we've pushed on air to make sure we're meeting customer needs in the holiday period. We'll do whatever we can to sustainably bring products in and be smart about that. Sonos is going to start a $150 million repurchase program after completing a $100 million share buy-back program.