IRobot Is Under Mounting Woes as China Tariffs Hurt U.S. Growth
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IRobot Corp.’s outlook for the year turned murkier after the Roomba maker’s domestic sales were once again caught up in the U.S. trade war with China, which weighed on results for a second straight quarter. U.S. sales account for about half of IRobot total revenue.
The robot manufacturer reduced its revenue forecast for 2019 and said recently-increased tariffs could weigh on gross margins in 2020, sending shares tumbling to their lowest level in over a year Wednesday. The stock is down about 45% since IRobot reported first-quarter revenue in April that missed expectations for the first time since 2015.