Sonos Inc. shares slid 11% on Tuesday after Bose Corp. revealed a new set of premium audio products, wiping out earlier advances the stock saw after Sonos reported quarterly results that topped expectations.
Bose introduced its Lifestyle Collection, which comprises the Lifestyle Ultra Speaker priced at $299, the Lifestyle Ultra Soundbar at $1,099, and the Lifestyle Ultra Subwoofer at $899. The company said the Ultra Speaker is the first premium third-party speaker to ship with integrated support for Amazon's Alexa+ artificial intelligence assistant. All three products are available for preorder and are scheduled to reach retail shelves on May 15.
Sonos reported second-quarter revenue of $281.5 million, a rise of 8.4% from the same period a year earlier, and above the Bloomberg consensus estimate of $267.5 million. The company posted an adjusted loss per share of $0.02, an improvement from a loss of $0.18 in the comparable quarter last year.
Management highlighted several cost-related and operational actions. Sonos said it is filing for tariff refunds that total $40 million, which the company said could help offset higher memory costs. The company also announced a senior leadership appointment, naming Frank Barbieri, formerly of Walmart, as Chief Operating Officer.
"First half Adjusted EBITDA is up 48% year over year, reflecting gross profit dollar growth combined with operating expense reductions," said Chief Financial Officer Saori Casey.
Market observers reacted to both the competitive development and the financial update. Rosenblatt Research analyst Steve Frankel kept a Buy rating and a $21 price target on the stock, arguing that the current low valuation does not reflect the strength of the Sonos franchise. He added that continued momentum from new products could support stronger growth and margin improvement, and that the company is positioned for steady top-line growth and margin expansion.
Despite the upbeat elements in the earnings report and analyst commentary, the immediate market response favored the competitive news from Bose, which introduced a set of products across speakers, soundbar, and subwoofer segments and highlighted built-in Alexa+ capability for the Ultra Speaker. The share price reaction underscores investor sensitivity to product launches from major audio competitors as well as to near-term cost pressures and potential offsets such as tariff refunds.
Sonos' financial results, tariff refund filing, executive change, and the competitive product announcements together framed the trading day, producing a notable reversal in the stock's intraday performance.