Strong Secular Growth Trends Expected to Continue
Logitech International (SIX:LOGN) (Nasdaq:LOGI) raised its Fiscal Year 2021 annual outlook to approximately 63 percent sales growth in constant currency, and approximately $1.1 billion in non-GAAP operating income. The Company’s previous outlook was between 57 and 60 percent sales growth in constant currency, and approximately $1.05 billion in non-GAAP operating income.
Announced its Fiscal Year 2022 annual outlook. Sales growth in constant currency is expected to be approximately flat, plus or minus 5 percent, and non-GAAP operating income is expected to be between $750 million and $800 million. This outlook reflects the Company’s ongoing investments in marketing, hardware and software innovation and go-to-market capabilities, as well as confidence in its ability to execute following an exceptional Fiscal Year 2021.
Announced improvements in its long-term business model. Expectations of long-term sales growth in constant currency have increased to 8 to 10 percent, up from high-single digits. The non-GAAP gross margin target has been raised to between 39 and 44 percent, up from 36 to 40 percent. The non-GAAP operating margin target has improved to between 14 and 17 percent, up from 11 to 14 percent.
“We’re delivering an extremely strong fiscal year,” said Bracken Darrell, Logitech president and chief executive officer. “Several years ago, we set out to become a design company and positioned our business against long-term growth trends in remote work, video collaboration, esports, and digital content creation. These trends have accelerated over the course of the fiscal year and have seen a coming of age for Logitech. Looking ahead, we see strong growth opportunities and will continue to invest behind these secular trends, as well as others where we have opportunities to lead.
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