Logitech expects further drop in sales

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Looking at the new fiscal year starting in April, Logitech expects further declines in first-half sales as the Swiss-American company announced Wednesday morning as investor day approaches. It should be between minus 18 and 22 percent adjusted for currency effects. For operating result (non-GAAP), the company specifies a target corridor of $160 to $190 million.

For the fiscal year 2022/23, which will run until the end of March, Logitech expects sales declines of 13 to 15 percent at constant currencies, as announced in January. Non-GAAP operating income is expected to be between $550 million and $600 million. For the previous fiscal 2021/22, Logitech reported non-GAAP operating income of $904 million.

However, it should be noted that Logitech has grown significantly during the corona pandemic, with the currently reported decline in sales. The company has capitalized on the trend towards working from home and distance learning in schools and universities. After the end of the Corona crisis, this business has visibly cooled. Logitech’s sales are still well above pre-pandemic values.

“Fiscal year 2023 has been a year of transition for Logitech because we continue to face a number of headwinds,” company boss Bracken Darrell said in a statement. But in the long run, the company will continue to gain market share in the main categories. In addition, the cost structure will be adjusted according to the changing market size, which means more savings. According to Darrell, Logitech primarily wants to grow in video, hybrid work, games and content creation.

That’s why Logitech has also confirmed its long-term goals. Accordingly, at constant currencies, sales are expected to increase by 8 to 10 percent per year. Gross margin (non-GAAP) is expected to be between 39 percent and 44 percent and operating margin (non-GAAP) is expected to be between 14 percent and 17 percent.

(SDA)

Source :Blick