October 26, 2022
Logitech’s sales slowed compared to last year, when restrictions on COVID-19 helped drive the company to its highest-ever second-quarter sales due to strong demand for home office products and computer game equipment.
Almost all product segments experienced declines in revenue this quarter: Pointing Devices fell 2% to $185 million, Keyboard and Combos fell 15% to $200.8 million, gaming fell 10% to $297.6 million, and PC Webcams fell 36% to $60 million. The only bright spot was video collaboration, which rose 2% to $236.2 million.
Logitech posted an operating profit of $127.4 million for the third quarter, down from $179.4 million in the previous year. Although the equipment manufacturer reduced operating expenses by almost 25%, operating profit in the first six months was $1834 million, compared to $326.3 million. In addition, Logitech recorded revenue of $1.149 billion for the second quarter, a 12% year-on-year decrease. Revenue in the first six months was $2.308 billion, a decrease of nearly $310 million compared to the same period in 2021.
Since then, the company has reduced operating expenses by 15% compared to the previous year and reduced expenditures on sales, marketing and general and administrative expenses.
“Despite global macroeconomic headwinds, we will pursue operational excellence and deliver industry-leading innovation,” CEO Bracken Darrell said in a statement.
Logitech also reaffirmed its guidance for the full year, anticipating a 4% to 8% decline in constant currency sales and a non-GAAP operating profit of $650 million to $750 million.
The sources for this piece include an article in TheRegister.
