Sonos Posts Record Profits, But CFO Retirement Sends Stock Down 15%
Sonos has today announced that its chief financial officer Mike Giannetto, who has been working for the company for more than seven years, will be leaving the company once a replacement can be named. Shortly after the announcement, Sonos’ stock fell as much as 15% despite posting record quarterly profits (via Fortune).
Giannetto, 55, who has served as CFO since 2012, was part of the Sonos executive leadership team that took the speaker company public last year. “It’s a big decision and something I’ve been thinking about for a while,” Giannetto said during the company’s earnings call.
The company reported its most profitable quarter ever, posting $496.4 million in revenue and net income of 55 cents a share, which represented a 5.8% increase over the same period last year. According to FactSet, analysts had been forecasting revenue of $490.7 million and earnings of 40 cents a share.
At the same time, however, Sonos warned that revenue in the current quarter could come in lower than expectations. “Reduced sell-through velocity toward the end of Q1 FY2019 created higher channel inventory levels than we would have liked”.
The company has now hired an executive search firm to find a new CFO.