• Logitech reported a 22% decline in its Q3 2023 sales revenue.
• The Swiss-American computer mice maker reported a 16% and 10% decline in gaming and video collaboration sales, respectively.
• Non-GAAP operating income slid 32% to $204 million.
Logitech International SA (NASDAQ: LOGI) recently posted their Q3 2023 earnings report, showing a significant drop in quarterly sales. The Swiss-American computer mice maker saw a 22% decline in revenue and a 16% and 10% decline in gaming and video collaboration sales respectively. This underperformance was particularly stark in comparison to the company’s preliminary results, highlighting a stall in customer purchases amidst economic worries.
Logitech’s reported revenue of $1.27 billion also fell short of expectations by $50 million, and their Non-GAAP operating income plummeted 32% to $204 million in comparison to the year-ago quarter’s figure of $302 million. In light of this, Logitech has revised its full-year sales outlook downward.
Despite the lacklustre performance, Logitech’s cash and cash equivalents still remain strong at $898 million. In addition, the company also made headway with its restructuring program, with the company having achieved $140 million in savings in the quarter. Furthermore, Logitech also announced a 2-for-1 stock split which will become effective on October 1, 2023.
Logitech is confident that the steps taken to optimize their business will help drive profitability and long-term growth. The company also remains focused on its core markets and is investing in areas of strength and potential. Logitech CEO Bracken Darrell stated, “We are committed to our strategic direction and are taking the right steps to optimize our business, drive profitability and long-term growth.”