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Logitech Q4 sales plunge 22% as economic downturn worries weigh

Published 05/01/2023, 09:24 PM
Updated 05/01/2023, 10:50 PM
© Reuters. FILE PHOTO: Logitech keyboards and mouse are seen in the computer shop in Zenica, Bosnia and Herzegovina October 20, 2020. REUTERS/Dado Ruvic/File Photo
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(Reuters) - Logitech (NASDAQ:LOGI) International posted a 22% drop in fourth-quarter sales on Tuesday, as growing worries of an economic downturn continue to hinder the computer peripherals maker from maintaining the growth experienced during the pandemic.

The Swiss company said its sales for the three months to March-end fell to $960 million, compared with $1.23 billion in the year-ago period.

"We have proactively controlled expenses to align our operating costs with reduced revenue," Logitech Chief Financial Officer Charles Boynton said, adding that the company is reaffirming its outlook for the first half of this fiscal year.

© Reuters. FILE PHOTO: Logitech keyboards and mouse are seen in the computer shop in Zenica, Bosnia and Herzegovina October 20, 2020. REUTERS/Dado Ruvic/File Photo

Credit Suisse downgraded Logitech in March to "neutral" from "outperform", citing "no growth until Christmas quarter" amid challenging interest rates and lack of short-term catalysts.

The maker of computer mice, keyboards and video conferencing equipment said its non-GAAP operating income slipped 47% to $82 million in the reported quarter.

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