Pc elements maker Logitech lifts outlook after upbeat quarter

By John Revill

ZURICH (Reuters) -Pc mouse maker Logitech Worldwide raised its full-year gross sales and revenue outlook on Tuesday, after a robust efficiency throughout practically all product classes and a rising contribution from synthetic intelligence-equipped gadgets.

The Swiss-American firm reported gross sales progress of greater than 10% in its gadgets for laptop players, keyboards, tablets and headsets through the three months to the tip of June.

Whereas gross sales of different product classes grew extra slowly, solely cellular audio system and webcams reported gross sales declines.

The efficiency pushed Logitech right into a second consecutive quarter of upper group gross sales, ending a interval of decrease demand that adopted the pandemic-driven gross sales growth.

“We needs to be on the best way to sustainable progress,” CEO Hanneke Faber, a former Unilever govt, who took cost of the corporate in December 2023.

“It is actually high quality progress. It is broad primarily based throughout our classes, throughout the areas,” she advised Reuters in an interview.

The corporate now expects its full-year gross sales within the vary of $4.34-$4.43 billion, up from a earlier projection of $4.3-$4.4 billion, and representing a rise of 1-3% from 2024 ranges.

It added that it expects non-GAAP working earnings to be between $700 and $730 million for fiscal yr 2025, in contrast with $685 million-$715 million earlier.

The improve got here after Logitech reported gross sales rising 12% to $1.1 billion in its first quarter ended June 30, beating the analysts’ consensus forecast of $1.025 billion compiled by Seen Alpha.

Non-GAAP working earnings for the quarter soared 67% to $182 million, added Logitech, which is predicated in Lausanne, Switzerland and San Jose, California.

Throughout the interval, Logitech additionally launched 11 new merchandise, many utilizing AI which made them extra worthwhile.

Faber stated AI was enjoying an more and more necessary function, for instance software program which permits customers to simply entry AI platforms similar to ChatGPT by means of mice and keyboards.

Earlier this yr, Faber outlined plans to increase the shopper base past places of work and into schooling and healthcare.

“In the present day we’re principally centered on places of work… however most individuals on the planet do not work in places of work,” stated Faber, noting that Logitech’s academic merchandise had elevated gross sales by 20% through the quarter.

(Reporting by John Revill and Chandni Shah; Enhancing by Rashmi Aich and Miral Fahmy)