Logitech reports revenue declines in nearly every division • The Register – News Block

Logitech has reported declining sales across much of its portfolio, but the rate of decline is slowing, prompting interim CEO Guy Gecht to raise sales and profit forecasts for the first half of fiscal 2024.

Revenue for the Swiss and US peripherals maker’s first quarter that ended June 30 fell 16 percent on-year to $974 million, and profit from operations fell nearly a third to $78 million.

Board member Gecht, whom Logitech named interim CEO last month following the departure of Bracken Darrell, described business conditions as “still challenging.”

According to Logitech’s earnings slides (PDF), the only category that reported sales expansion in the quarter was tablet accessories, up 7 percent to $70 million. Web cameras fell 30 percent to $75 million, keyboards and combos fell 20 percent to $181 million, video collaboration fell 23 percent to $139 million, and headsets fell a fifth to $37 million.

Games were down 9 percent at $266 million and pointing devices were down 20 percent at $174 million. The Other section, mostly mobile and PC speakers, plunged 35 percent to $31 million.

This was actually better than Logitech’s initial estimate and encouraged the finance department to push first-half sales prospects from $1.8 billion to $1.9 billion to $1.875 billion to $1.975 billion. If accurate, the forecast means Logitech’s revenue will decline 14 to 19 percent compared to the previously expected 18 to 22 percent.

“This strong first quarter highlights steady progress across many important metrics,” Chief Financial Officer Charles Boynton said in a statement. “We delivered another quarter of reduced inventory and operating expenses.”

Operating expenses fell from $344 million to $297 million. One of the many levers pulled to do this was to lay off 300 of its 8,200 employees.

Logitech acknowledges that it is “making steady progress” in finding a successor to Bracken, who after 10 years at the helm of the company left the company to run VF Corp, maker of Vans shoes and The North Face outdoor clothing line.

The pandemic has been kind to many tech companies, including Logitech, which has soared to record levels thanks to demand from consumers and business users who suddenly found themselves locked indoors amid government-imposed lockdowns to reduce the rate of COVID-19 infections.

Logitech’s rise came in parallel with a resurgence in the PC market, another area now struggling to grow. Normal buying cycles are resuming. ®