The computer accessories manufacturer Logitech suffered a slump in profits in the third quarter of the 2022/23 financial year, which ended in December. The group has also lowered its forecasts for the full year. (Iconic image)
In its preliminary figures for the third quarter, Logitech has sales of between 1.26 and 1.27 billion US dollars, as the computer accessories manufacturer surprisingly announced on Thursday. The group suffered a slump in profits. Operating income (non-GAAP) is between $198 million and $203 million, according to preliminary figures. This represents a dip of 33 to 34 percent compared to the same quarter last year. The operating margin is still between 15.7 and 16.0 percent.
“We are disappointed with the preliminary results for the third quarter,” Logitech CEO Bracken Darrell said in the statement. The figures would reflect difficult macroeconomic conditions. In particular, sales to corporate customers slowed in the quarter.
“Due to the weaker than expected results for the third quarter and the uncertain ability to deliver in connection with the current Covid outbreak in China, we are reducing our outlook for the full year,” he continues.
For the full year 2022/23, the company expects a drop in sales of between 15 and 13 percent, at constant currencies. Operating income (non-GAAP) was reduced to between $550 million and $600 million. Previously, Logitech had assumed a currency-adjusted decline in sales of between 8 and 4 percent, and non-GAAP earnings between 650 and 750 million dollars.
“We will continue our cost management to deliver solid operational performance,” Darrell said. With the announcement of the final figures for the third quarter on January 24, the company wants to announce further details.