Business · Companies · 6 hrs ago

Logitech beats expectations in second quarter as supplier disruption eases

Logitech beats expectations in second quarter as supplier disruption eases

Logitech’s second-quarter results beat expectations for operating profit and gross margin, despite a supplier disruption.

Revenue rose 2% to $1.22 billion, while adjusted operating profit edged up 0.4% to $230.9 million.

Gaming and video collaboration sales grew, rising 8% and 12% respectively, while tablet accessories fell 32%.

The supplier problem began after an incident at a factory, and Logitech now expects it to reduce third-quarter sales by $70 million to $80 million, down from an earlier estimate of as much as $200 million.

The factory reopened in September, and Logitech expects it to return to full capacity by the end of the calendar year.

For the important holiday quarter, the company expects sales to be flat or fall by as much as 5%, to between $1.36 billion and $1.43 billion, with the disruption included in that forecast.

2 sources

Related