information technology
Logitech suffers profit slump in the holiday season
Two weeks after Logitech shocked investors with a profit warning in the important Christmas business, the computer accessories manufacturer is now presenting the definitive figures for the third quarter of 2022/23.
Published: 25 minutes ago
Sales at Logitech plunged 22 percent to $1.27 billion in September through December, the American-Swiss group announced on Tuesday. (archive image)
The bottom line is that net income has collapsed to $140.2 million. A year ago, the group had brought in a net profit of 210 million dollars. Sales in the months of September to December fell by 22 percent to $ 1.27 billion, as the American-Swiss group announced on Tuesday.
The appreciation of the dollar left its mark. At constant currencies, sales would have fallen by only 17 percent. Operating income (non-GAAP) fell 32 percent to $204.2 million.
Two weeks ago, Logitech had announced a drop in sales to $1.26 to $1.27 billion and an EBIT diver by a third to between $198 million and $203 million. This had caused the share to fall from over 60 francs to just over 50 francs. Since then, the title has been bobbing along at this level.
The demand from companies was weaker than expected, wrote Logitech. Purchases by private consumers have also fallen and are concentrated on action weeks.
Sales fell in all product categories. Sales of gaming accessories fell 16 percent, while sales of keyboards and combos fell 22 percent. Demand for video collaboration fell to about the same extent. Computer mice were also less in demand (-14 percent). PC webcams even collapsed by half.
For the full year 2022/23, the company had lowered its targets two weeks ago: Logitech now expects a drop in sales of between 13 and 15 percent at constant currencies. Non-GAAP operating income target lowered to $550-$600 million.
Previously, Logitech had assumed a currency-adjusted decline in sales of between 4 and 8 percent and non-GAAP earnings between 650 and 750 million dollars. In the previous fiscal year 2021/22, Logitech still had an operating profit (non-GAAP) of 904 million dollars.