Logitech’s preliminary third-quarter sales are between $1.26 and $1.27 billion, as the computer accessories maker surprisingly announced on Thursday. The group’s profits fell. According to preliminary figures, operating income (non-GAAP) is between $198 million and $203 million. This represents a 33 to 34 percent decrease compared to the same quarter last year. The operating margin is still between 15.7 percent and 16.0 percent.
“We are disappointed with the preliminary results for the third quarter,” Logitech CEO Bracken Darrell said in a statement. The figures will reflect difficult macroeconomic conditions. In particular, sales to corporate customers slowed in the quarter.
“Due to weaker-than-expected results for the third quarter and uncertainty about delivering in connection with the current Covid outbreak in China, we are lowering our outlook for the full year,” he continues.
For the full year 2022/23, the company expects a 15 to 13 percent drop in sales at constant currencies. Operating income (non-GAAP) was reduced to between $550 million and $600 million. Previously, Logitech had assumed a currency-adjusted drop in sales of 8 to 4 percent and a drop in non-GAAP earnings of $650 to $750 million.
“We will continue our cost management to ensure solid operational performance,” said Darrell. With the final figures for the third quarter released on January 24, the company wants to reveal more details.
(SDA)