Logitech (LOGI.US) reported adjusted profit for the first quarter and lowered its full-year 2023 outlook on Tuesday, as consumer demand for computer peripherals is declining sharply compared with the same period a year ago. Logitech reported sales of $1.16 billion for the quarter, down 9 percent year-over-year on a constant currency basis, and non-GAAP operating income fell 38 percent year-over-year to $146 million. The company’s sales rose 66 percent last year and revenue doubled as demand for computers and peripherals soared in the epidemic environment.
Chief Executive Officer Bracken Darrell said in a statement, “Due to the “exceptional growth” of the past two years, the company has adjusted its operational focus in this quarter at the right time in a very challenging environment.” Based on the company’s previous forecast, the original annual sales estimate of 2 percent to 4 percent growth on a constant currency basis has been adjusted to an 8 percent to 4 percent sales decline; the original non-GAAP operating income estimate of $875 million to $925 million has been adjusted to $650 million to $750 million.
Logitech has been benefiting from consumer demand to upgrade its home office equipment in the epidemic environment, and the company is starting to upgrade their equipment as the offline office gradually recovers. The company had cut its full-year outlook earlier this year, having lost sales revenue in both countries due to the Russia-Ukraine war
