Logitech Reports 2 Percent Decline in Quarterly Sales as Demand Ebbs

Logitech International reported a 2 percent drop in third-quarter sales as the computer peripherals-maker lapped tough comparisons from a year earlier, when the pandemic boosted demand for its products.

However, the maker of keyboards, mice, and headsets raised its forecast for the current fiscal year to between 2 percent and 5 percent sales growth in constant currency, and between $850 million (roughly Rs. 6,340 crore) and $900 million (roughly Rs. 6,710 crore) in non-GAAP operating income.

It had previously forecast flat sales growth, plus or minus 5 percent, and non-GAAP operating income of $800 million (roughly Rs. 5,970 crore) to $850 million (roughly Rs. 6,340 crore).

For the third quarter, sales fell to $1.63 billion (roughly Rs. 12,160 crore) in the three months ending December 2021. The company had posted quarterly sales of $1.67 billion (roughly Rs. 12,460 crore) a year earlier, boosted by stay-at-home workers buying more keyboards, mice and webcams.

The Swiss-American company, the first to manufacture and sell computer mice in the 1980s, said its non-GAAP operating income fell by 37 percent to $302 million (roughly Rs. 2,250 crore) during the reported quarter.

Late last year, the company said it was facing unprecedented problems getting parts to make its products, which also include headsets, video conferencing device, and wireless speakers.

© Thomson Reuters 2022