Logitech’s stock dropped after the mouse and keyboard manufacturer missed earnings estimates for the most recent quarter and reduced its sales forecast.
When compared to the third quarter of the previous fiscal year, the company’s net sales are down between 22 per cent and 23 per cent in US dollars and 17 per cent to 18 per cent in constant currency.
Preliminary third-quarter GAAP operating income fell between $171 million and $176 million year on year, a drop of around 35 per cent. Sales were down 22 per cent to $1.26 billion to $1.27 billion.
The company now expects year-to-March sales to fall between 13 per cent and 15 per cent in constant currency, down from a previous forecast of four to eight per cent.
“We are disappointed in these preliminary third quarter results,” said Logitech president and CEO Bracken Darrell in a statement accompanying the prelims.
“They reflect challenging macroeconomic conditions including a slowdown in sales to enterprise in the quarter. Based on softer than expected third quarter results, and uncertainty in supply availability related to the current COVID outbreak in China, we are reducing our full year outlook.”
The sources for this piece include an article in TheRegister.