Logitech sees drop in demand after pandemic, reports 2% drop in quarterly sales

Deepak Gupta
Deepak Gupta January 25, 2022
Updated 2022/01/25 at 5:47 AM

Logitech International reported a 2 percent drop in third-quarter sales as the maker of computer peripherals overcame difficult comparisons from a year earlier, when the pandemic boosted demand for its products.

However, the keyboard, mouse and headset maker raised its forecast for the current fiscal year to sales growth of between 2% and 5% in constant currency and between US$850 million (approximately Rs. 6,340 crore) and US $900 million (approximately Rs. 6,710 crore) in non-GAAP operating income.

It had previously forecast steady sales growth, plus or minus 5%, and non-GAAP operating income of US$800 million (approximately Rs. 5,970 crore) to US$850 million (approximately Rs. 6,340 crore).

In the third quarter, sales dropped to US$1.63 billion (approximately Rs. 12,160 crore) in the three months ending December 2021. The company had reported quarterly sales of US$1.67 billion (approximately Rs. 12,460 crore) a year earlier, driven by staying at home -workers buying more keyboards, mice and webcams.

The Swiss-American company, the first to make and sell computer mice in the 1980s, said its non-GAAP operating income dropped 37% to $302 million (approximately Rs. 2,250 crore) during the reported quarter.

Late last year, the company said it was facing unprecedented problems obtaining parts to make its products, which also include headphones, video conferencing device and wireless speakers.

© Thomson Reuters 2022

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