Logitech International, a prominent computer peripherals maker, said its sales declined by 16 percent to $974 million during April-June 2023.
Logitech has posted operating profit of $78 million, down 32 percent compared to the prior year. These results come after the company experienced a surge in sales during the COVID-19 pandemic as individuals outfitted their home offices with essential peripherals like keyboards, webcams, and computer mice.
Logitech has generated revenue of $266.429 million (–11 percent) from Gaming; $180.855 million (–21 percent) from Keyboards; $174.454 million (–5 percent) from Pointing Devices; $139.346 million (–23 percent) from Video Collaboration; $75.200 million (–31 percent) from Webcams; $70.336 million (+6 percent) from Tablet Accessories and $36.85 million (–20 percent) from Headsets.
Logitech has revised its sales outlook for the first half of the 2024 financial year, signaling optimism despite recent leadership changes and economic challenges.
Following the departure of longstanding CEO Bracken Darrell last month, the company released its first set of results under new leadership. Logitech now anticipates first-half sales ranging from $1.875 billion to $1.975 billion, up from the earlier estimate of $1.8 billion to $1.9 billion. Additionally, the company forecasts full-year sales of $3.8 billion to $4 billion.
“Our high-caliber seasoned team, design-led engineering and strong execution truly sets us apart. Our latest innovations and elevated outlook are just a glimpse of Logitech’s full potential as we execute our strategic vision,” said Guy Gecht, Logitech interim chief executive officer.
Logitech is bracing for a potential downturn in sales as economic conditions normalize and businesses and consumers curb their spending. The shift poses a challenge for the company as it continues its search for a successor to Bracken Darrell, who left Logitech to assume the role of CEO at VF Corp, known for brands such as Vans and The North Face.
Under Darrell’s leadership, which spanned a decade, Logitech achieved a successful turnaround by implementing faster product launches and improved design strategies. In response to lower demand, the company made workforce adjustments last year, reducing its workforce by 300 to 7,400.
Despite the impending challenges, Logitech’s raised sales outlook indicates confidence in its ability to navigate the evolving market landscape. The company’s diverse product portfolio, which includes mobile speakers, webcams, and computer mice, positions it to adapt to changing consumer needs and preferences.
As Logitech seeks to solidify its position in the computer peripherals industry and find a new leader to build on its past successes, it remains committed to delivering innovative products and maintaining its competitiveness in the global market.