Logitech Q3 sales drop double digits as PC market falters • Log | Job Binary

Logitech grew during the pandemic, but like many businesses that depend on the PC ecosystem, turnover is shrinking and revenue is falling.

The peripherals maker had revenue of $1.149 billion [PDF] For Q2 ended September 30, down 12 percent year-on-year. In those six months, Logitech had revenue of $2.308 billion, down $310 million from the same period in 2021.

President and CEO Bracken Darrell said the company has twenty new products to entice consumers for the holidays, because nothing says you love someone like a new mouse. This offering, he says, “can capitalize on long-term trends in hybrid work, ubiquitous video, gaming and digital content creation.”

Almost every product division saw a drop in sales in the quarter: Pointing Devices fell two percent to $185 million; Keyboard and combos were down 15 percent to $200.8 million, games were down 10 percent to $297.6 million, and PC Webcams were down 36 percent to $60 million.

The only relief came from the Video Partnerships unit, which grew two percent to $236.2 million.

The PC market grew in 2021 in terms of units shipped, but inflation and other factors have impacted 2022, with declines in calendar Q1, Q2 and a sharp correction in Q3. Gartner, for example, estimates that shipments fell 19.5 percent in the June-September quarter, the biggest drop since PC sales began being recorded.

After a promising holiday push, Logitech says many gadgets are ready for 2023, when the company expects to start refreshing its fleets of aging PCs with new boxes capable of running Windows 11 and perhaps the existing traction video collaboration Sight AI Camera.

Logitech reported a profit of $127.4 million in Q3 compared to $179.4 million a year ago. This is despite device manufacturers cutting nearly 25 percent off operating costs. For the six months, operating profit was $1834 million, compared to $326.3 million.

The company also announced Tuesday that CEO Nate Olmstead is leaving Logitech, but plans to stay on board while the search for a successor continues. ®

Source link