Logitech’s quarterly profit slumps 38% as pandemic demand wanes
2022.07.26 05:10
FILE PHOTO: Logitech logo and stock graph are seen in this illustration taken, May 1, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – Logitech (NASDAQ:LOGI) International reported a 38% fall in first-quarter adjusted profit and cut its full-year 2023 outlook on Tuesday, as the maker of web-cams, speakers and computer mice struggled to match tough comparisons from a year earlier.
The Swiss-American company reported sales of $1.16 billion for the three-month period ended June, down 9% on a constant-currency basis. Non GAAP operating income fell 38% to $146 million.
Last year, the company’s sales rose 66% and operating income doubled as demand for computers and peripherals boomed during the COVID-19 lockdowns as stay-at-home people shifted to hybrid working.
The company approved on Tuesday an increased share buyback authorization up to $1.5 billion from the current $1 billion.
“This quarter, we demonstrated our operational focus in the face of challenging conditions, and off the back of exceptional growth these past two years,” Chief Executive Officer Bracken Darrell said in a statement.
The company also reduced its full-year outlook to between 8% and 4% sales decline in constant currency, and between $650 million and $750 million in non-GAAP operating income, citing challenging conditions.
It had previously forecast annual sales growth of 2% to 4% on a constant-currency basis, and non-GAAP operating income of $875 million to $925 million.
Logitech has been benefiting from the pandemic as staff working from home upgraded their keyboards, mice and video conferencing equipment. Companies have also been upgrading their equipment as people return to the office.
The company earlier this year cut its full-year outlook, citing loss of sales in Ukraine and Russia after it halted its activities in both the countries.
