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Swiss hearing aid maker Sonova resumes supplying Costco, source says
Published by Jessica Weisman-Pitts
Posted on October 28, 2024
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 28, 2024
2 min readLast updated: January 29, 2026
(Reuters) – Swiss hearing aid maker Sonova is resuming supplies to Costco, a source with knowledge of the matter told Reuters on Monday.
(Reuters) – Swiss hearing aid maker Sonova is resuming supplies to Costco, a source with knowledge of the matter told Reuters on Monday.
Its shares rose as much as 7% to their highest in more than two years.
The product to be sold at Costco, a prescription hearing aid by the name of Sennheiser Sonite R which was specifically designed for the retailer, will initially be available in 107 locations in the United States, with a gradual expansion expected in the future, the source said.
The source added that it is typical for Costco to test sales of a product in a number of warehouses before a broader roll out.
The comments come after analysts at J.P. Morgan wrote in a note to clients that online reports on Friday had said Sonova was expected to replace Rexton as a supplier to Costco, after the Swiss company’s previous agreement with the retailer was discontinued in 2022.
“I think there is the expectation already in terms of what the analysts are writing, that this will be, I mean, a gradual ramp-up,” the source said.
J.P. Morgan analysts deemed the move “a positive surprise”, noting Sonova and other hearing aid management teams had previously downplayed the possibility of a near-term return to Costco.
Sonova had previously been a supplier under Costco’s own brand Kirkland Signature, the analysts noted.
“We do not believe re-entering Costco on the branded side will be worth as much as the previous KS contract, as Sonova will be competing with Demant and GN rather than being the sole supplier of KS,” the analysts said.
The official launch of the Sennheiser product for Costco will come during Monday, the source said.
Costco was not immediately available for comment, while a spokesperson at Sennheiser Consumer division declined to comment.
In 2023, the company had reported a hit to its full-year 2022-23 profits from the loss of a big U.S. customer, whose name it did not disclose.
Sonova makes hearing aids under a number of brands, such as Phonak, Unitron, Hansaton and Sennheiser.
(Reporting by Elizaveta Gladun and Linda Pasquini; Additional reporting by Neil J Kanatt; Editing by David Holmes)
A hearing aid is a small electronic device worn in or behind the ear that amplifies sound for individuals with hearing loss.
A prescription hearing aid is a device that is customized and dispensed by a licensed audiologist or hearing specialist, based on an individual's specific hearing needs.
Market expansion refers to the strategy of entering new markets or increasing market share in existing markets to drive growth and revenue.
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