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Logitech Q4 sales plunge 22% as economic downturn worries weigh
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(Reuters) – Logitech International posted a 22% drop in fourth-quarter sales on Tuesday, as growing worries of an economic downturn continue to hinder the computer peripherals maker from maintaining the growth experienced during the pandemic.
(Reuters) – Logitech International posted a 22% drop in fourth-quarter sales on Tuesday, as growing worries of an economic downturn continue to hinder the computer peripherals maker from maintaining the growth experienced during the pandemic.
The Swiss company said its sales for the three months to March-end fell to $960 million, compared with $1.23 billion in the year-ago period.
“We have proactively controlled expenses to align our operating costs with reduced revenue,” Logitech Chief Financial Officer Charles Boynton said, adding that the company is reaffirming its outlook for the first half of this fiscal year.
Credit Suisse downgraded Logitech in March to “neutral” from “outperform”, citing “no growth until Christmas quarter” amid challenging interest rates and lack of short-term catalysts.
The maker of computer mice, keyboards and video conferencing equipment said its non-GAAP operating income slipped 47% to $82 million in the reported quarter.
(Reporting by Urvi Dugar and Shivani Tanna in Bengaluru; Editing by Rashmi Aich)
Operating income is the profit a company makes from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's operations.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly. It often leads to a loss of confidence in the economy and can result in widespread economic downturn.
An economic downturn is a period of declining economic performance across an economy, typically identified by a decrease in GDP, rising unemployment, and reduced consumer spending.
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