Logitech International reported lower earnings and sales for Q3 and cut its sales outlook, citing a complex economic backdrop and supply chain uncertainties linked to China’s COVID-19 outbreak.
The Swiss-American maker of keyboards, mice, and headsets said preliminary Q3 GAAP operating income fell around 35% yearly to between $171 million and $176 million. Sales were down 22% to between $1.26 billion and $1.27 billion.
Logitech CEO Cites “Challenging Macroeconomic Conditions”
Logitech CEO Bracken Darrell said the weaker-than-expected results reflected “challenging macroeconomic conditions, including a slowdown in sales to enterprise customers in the quarter.” The company cut its outlook based on the results and “uncertainty in supply availability related to the current COVID outbreak in China.”
Logitech Faces Slowdown as Lockdowns Lift
Last year, COVID restrictions drove Logitech to its highest-ever second-quarter sales on the back of strong demand for home office products and computer gaming devices. But this year, it has faced a slowdown as many lockdowns have been lifted, consumers have become more downbeat, and components and transport costs have risen, eating into profit margins.