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Logitech Sales Plunge 22% in Q3, CEO Reassures Investors

• Logitech International SA (NASDAQ: LOGI) recently posted its Q3 2023 earnings report, which showed a 22% drop in quarterly sales.
• For its fiscal Q3 2023, Logitech reported sales of $1.27 billion, with category sales declining 22% and 17% in both US dollars and constant currency.
• Logitech’s reported revenue of $1.27 billion also missed revenue estimates by $50 million, with Non-GAAP operating income sliding 32% to $204 million.

Logitech International SA (NASDAQ: LOGI) recently reported its fiscal Q3 2023 earnings and the results were far from encouraging. The Swiss-American computer mice maker reported a 22% drop in quarterly sales, in line with its preliminary results which showed a halt in customer purchases of new equipment due to slowdown worries.

Logitech’s total sales for its fiscal Q3 2023 amounted to $1.27 billion, with category sales declining 22% and 17% in both US dollars and constant currency. Gaming sales also decreased by 16% and 10% in US dollars and constant currency, respectively, while video collaboration sales dropped 21% in US dollars and 16% in constant currency. Keyboard and combo sales were not spared either, with a 22% and 17% decrease in US dollars and constant currency respectively.

Logitech’s reported revenue of $1.27 billion also missed revenue estimates by $50 million, and Non-GAAP operating income slid 32% to $204 million, compared to the year-ago quarter of $302 million. This plunge in sales, coupled with the halt in customer purchases of new equipment due to economic slowdown, has caused Logitech to lower its full-year sales outlook.

With the market clearly shaken up by the results, Logitech CEO Bracken Darrell was quick to reassure investors and customers by saying, “We are confident in our strategy and our ability to manage our cost structure and deliver long-term growth.” He also mentioned that the company is aimed to invest in new categories, such as audio and video, to drive future growth.

Overall, Logitech’s Q3 2023 earnings were far from satisfactory and the company is now looking to invest in new categories, such as audio and video, to drive future growth. While it remains to be seen if Logitech can turn things around, investors and customers alike will be keeping a close eye on the company’s future performance.