By Reuters | Updated: 23 January, 2024
Jan 23 (Reuters) – Logitech International’s (LOGN.S), opens new tab new CEO on Tuesday said the company would work to return to growth as it forecast annual sales would decline less than previously anticipated and reported third quarter revenue that beat expectations.
The maker of computer mice, keyboards and webcams has been dealing with customers wrestling with inflation, and uncertainty among businesses about how to equip their offices as they move to hybrid working.
Shares fell 6% in early trade. The stock hit its highest level on Monday since October 2021 when customers equipping home offices during the COVID-19 pandemic drove a sales surge.
“A lot of expectations have already been reflected in the share price after the external indicators approached their low point and the increase in the guidance for net sales was not quite as much as we had expected,” Research Partners analyst Reto Huber said.
“Our teams executed well, continuing our long record of exceptional product innovation… But we will not be satisfied until we return to top line growth,” CEO Hanneke Faber said in a statement.
The company, based in Lausanne, Switzerland and San Jose, California, expects an annual sales decline of 6%-7% to $4.2 billion-$4.25 billion. It previously forecast a full-year sales decline of 9%-12%.
In the quarter to Dec. 31, sales fell to $1.26 billion from $1.27 billion a year earlier.
Its non-GAAP operating income rose to $248 million during the same period, traditionally the most important quarter of its year.
It forecast non-GAAP operating income would grow by 4%-12%, and come in at $610 million-$660 million. The company previously expected annual non-GAAP operating income of $525 – $575 million.
“Logitech delivered better-than-expected results in the December quarter with sales down only 1% year-on-year, indicating that the post-pandemic normalisation is coming to an end and sales may start growing again in a couple of quarters,” said Vontobel analyst Michael Foeth in a note.
Faber, the former head of Unilever’s (ULVR.L), opens new tab nutrition business, joined Logitech on Dec. 1, replacing long-standing CEO Bracken Darrell, who left to join sneaker and clothing company VF Corp (VFC.N), opens new tab.
© Thomson Reuters 2024
