Computer parts maker Logitech lifts outlook after upbeat first quarter

Computer mouse maker Logitech International (LOGN.S) raised its full-year sales and profit outlook this week, saying it expected full year sales growth of up to 3 per cent after a strong performance across nearly all its product categories.

The Swiss-American company reported sales growth of more than 10 per cent in its devices for computer gamers, keyboards, tablets and headsets during the three months to the end of June.

While sales of other product categories grew more slowly, only mobile speakers and webcams reported sales declines.

The performance pushed Logitech into a second consecutive quarter of higher group sales, ending a period of lower demand that followed the pandemic-driven sales boom.

“We started the new fiscal year strong, with high-quality, broad-based growth across all regions and key categories,” said CEO Hanneke Faber, a former Unilever (ULVR.L) executive, who took charge of the company in December 2023.

The company now expects its full-year sales in the range of $4.34-$4.43 billion, up from a previous projection of $4.3-$4.4 billion, and representing an increase of 1-3 per cent from 2024 levels.

It added that it expects Non-GAAP operating income to be between $700 and $730 million for fiscal year 2025, compared with $685 million-$715 million earlier.

The upgrade came after Logitech reported sales rising 12 per cent to $1.1 billion in its first quarter ended June 30, beating the analysts’ consensus forecast of $1.025 billion compiled by Visible Alpha.

Non-GAAP operating income for the quarter soared 67 per cent to $182 million, added Logitech, which is based in Lausanne, Switzerland and San Jose, California.

The performance was driven by lower product costs due to less expensive components as well as lower spending on promotions.

During the period, Logitech also launched 11 new products, many using artificial intelligence which made them more profitable.

The company’s shares opened 3.7 per cent higher in Zurich after the results.

Bank Vontobel analyst Michel Foeth described the figures as a “convincing set of results, which reflects strong execution and channel inventory management”.

Logitech had been struggling with a downturn in demand after enjoying a pandemic-driven boom. Earlier this year, it posted its first quarterly sales increase in two-and-a-half years, while Faber outlined plans to expand the customer base beyond offices and into education and healthcare.