Logitech increases annual sale targets, revenue to grow gradually

Higher sales target: Logitech International's new CEO, Hanneke Faber, is aiming for a return to revenue growth as the computer peripherals maker raised its full-year sales and profit guidance. Faber, a former Unilever executive who assumed the role in December, underlined a gradual improvement rather than a sudden V-shaped recovery, citing numerous uncertainties.

Logitech now expects its annual sales to decline by 6-7 per cent for the financial year ending in March, an improvement from the previous forecast of a 9-12 per cent decline. The Swiss-American company experienced a surge in sales during the COVID-19 pandemic, driven by increased demand for its computer mice, keyboards, and webcams as people adapted to remote work and play.

The decline in sales has been less pronounced in the latest quarter, with a 1 per cent decrease to $1.26 billion for the three months ending December 31. This compares favourably to a 3 per cent drop in the second quarter and a 9 per cent decline in the April to June period. Logitech's non-GAAP operating income during the same period increased by 26 per cent to $248 million.

In addition to revising its sales guidance, Logitech raised its profit outlook. However, Logitech shares faced a 10 per cent decline in afternoon trading following the update. Analysts suggest this may be attributed to investors taking profits after the stock reached its highest level since October 2021 on Monday. Some caution about the company's 2025 outlook may have also contributed to the decline in sentiment among investors.

(With Reuters inputs)