iRobot's (NASDAQ: IRBT) business was hit hard by the tariff war between the U.S. and China last year. Spiking import prices hurt the industry and created an opportunity for rivals to steal its market share. The owner of the Roomba robotic vacuum cleaner stood to lose the most from that tough environment, and that challenge was clear as sales volume fell to just an 8% gain over the first three quarters of 2019 compared to a 21% spike in the year-ago period.
On Thursday, the company revealed that management's price cut gamble paid off over the core holiday shopping season and secured a much-needed growth rebound. But now iRobot enters a risky fiscal year that will require execution around pricing, marketing, manufacturing, and innovation just to keep its edge.
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