Logitech sales slump 22% as fears of slowdown bite
Computer peripherals maker Logitech International said yesterday its thirdquarter sales fell 22%, confirming its preliminary results which showed that business customers had put the brakes on buying new equipment amid slowdown concerns.
The company saw strong demand for its home office products and computer gaming devices during Covid-19 lockdowns, but the momentum has been fading as countries lift the curbs and as high inflation drives up costs and refrains consumers from spending.
The Swiss-American maker of computer mice, keyboards and webcams has also been hit by difficulty in getting components for its factories in China, as cities shut down to tackle the resurgence of Covid-19 in the country.
Logitech’s sales in the three months to December-end fell to $1.27 billion. The company’s preliminary figures published on Jan 11 showed its sales had fallen to between $1.26 billion and $1.27 billion.
Its non-GAAP operating income fell 32% to $204 million from $302 million a year earlier. It had previously reported preliminary operating income in the range of $198 million to $203 million.
“These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower enterprise and consumer spending,” Chief Executive Officer Bracken Darrell said.
The company also retained its outlook for the financial year 2023.
It still expects full-year sales to drop 13% to 15% in the 12 months to the end of March, and generate non-GAAP operating income of $550 million to $600 million.