Logitech Shares Fall After It Forecast Sales Decline

Logitech Shares Fall After It Forecast Sales Decline

Shares in Switzerland-listed computer-equipment manufacturer Logitech International SA fell on Wednesday after the company forecast a sales decline in fiscal years 2023 and 2024.

At 0956 GMT, shares traded 5.3% lower at CHF46.39.

Logitech confirmed a sales decline of between 15% and 13% for the current fiscal 2023, as well as non-GAAP operating income of between $550 million and $600 million.

For the first half of fiscal 2024, it said it expects revenue to decline between 22% and 18% and to reach a range between $1.8 billion and $1.9 billion. Non-GAAP operating income is expected to be between $160 million and $190 million, the company said.

The indications for the first half of 2024 are gloomy and imply a margin of 9.6% versus 10.5% in the first half of the previous year, say Stifel analysts in a note.

In the long term, Logitech said it continues to expect sales growth in constant currency of between 8% and 10%, and non-GAAP gross margin target of between 39% and 44%. It also continues to expect non-GAAP operating margin of between 14% and 17%.

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