Keyboard maker Logitech raises forecast for first half of 2024
(Reuters) -Logitech International raised its sales and profit outlook for the first half of the financial year 2024 on Tuesday in its first set of results since longstanding CEO Bracken Darrell quit the computer peripherals maker last month.
The maker of computer mice and keyboards said its search for a successor was “progressing well,” and that a further update would be given “when we have news to share.”
Interim CEO Guy Gecht said markets were “still challenging” for Logitech, which rode a boom during the pandemic lockdown when people stocked up on its webcams and other equipment to work from home.
Since then, lower spending by businesses and consumers amid an economic downturn has weighed on results.
Still, the Swiss-American company was slightly more optimistic on Tuesday, saying it now expects first-half sales of $1.875 billion to $1.975 billion, up from the previous projection of $1.8 billion to $1.9 billion.
The company also expects to post non-GAAP operating income of $180 million to $220 million in the first six months of this financial year, up from its previous outlook of $160 million to $190 million.
In its first outlook for this business year, Logitech also forecast full year sales of $3.8 billion to $4 billion.
Logitech has made “steady progress” in reducing inventory and operating expenses in the three months to the end of June, CFO Charles Boynton said.
The current market downturn poses a challenge to Logitech as it has yet to find a successor to Darrell, who stepped down last month to become the CEO of VF Corp, the maker of Vans sneakers and The North Face outdoor wear.
Darrell, who helmed Logitech for 10 years, was credited with its turnaround through faster launches of new products and improved design.
(Reporting by John Revill in Zurich and Shivani Tanna in Bengaluru; Editing by Subhranshu Sahu and Varun H K)