Shares of premium audio company  (NASDAQ: SONO) got smacked down on Thursday after the company reported financial results for its latest quarter and lowered its full-year guidance. As of noon ET, Sonos stock was down 24%.

After the market closed yesterday, Sonos reported financial results for its fiscal second quarter of 2023, which ended on April 1. Revenue of $304 million was down a sharp 24% year over year. Surprisingly, this was above expectations from Wall Street although it was in line with management's outlook.

However, profitability was a different story for Sonos. To start, its gross margin declined to 43.3% compared to a gross margin of 44.8% in the prior-year period. Management cited higher sales of lower-margin products and an increase of inventory reserves.

Continue reading

Source Fool.com