Logitech International (SIX: LOGN) (Nasdaq: LOGI) announced financial results for the first quarter of Fiscal Year 2023.
- Sales were $1.16 billion, down 12 percent in US dollars and 9 percent in constant currency, compared to Q1 of the prior year. This performance reflects a challenging macroeconomic environment for the industry and compares against a quarter which grew 66 percent last year in US dollars.
- Category sales in US dollars grew 4 percent in Keyboards & Combos, were essentially flat in Pointing Devices and grew 5 percent in Video Collaboration compared to Q1 of the prior year. Sales in these categories in constant currency grew 7 percent, 3 percent and 7 percent, respectively. Gaming sales declined 16 percent in US dollars and 13 percent in constant currency compared to Q1 of the prior year.
- GAAP operating income declined 43 percent to $115 million, compared to $203 million and 143 percent growth in the same quarter a year ago. Non-GAAP operating income declined 38 percent to $146 million, compared to $235 million in the same quarter a year ago.
- GAAP earnings per share (EPS) declined 44 percent to $0.61, compared to $1.09 and 160 percent growth in the same quarter a year ago. Non-GAAP EPS declined 39 percent to $0.74, compared to $1.22 in the same quarter a year ago.
“While macroeconomic challenges affected our performance this quarter, I am encouraged by the continued growth in Video Collaboration, Keyboards & Combos and Pointing Devices as hybrid and return-to-work trends continue to take shape,” said Bracken Darrell, Logitech president and chief executive officer. “This quarter, we demonstrated our operational focus in the face of challenging conditions, and off the back of exceptional growth these past two years. While we will cut back our spending given the current environment, our strong innovation engine paired with secular growth trends – hybrid work, video everywhere, gaming and digital content creation – position us well for the future.”
Outlook
Given the current challenging conditions, Logitech reduced its Fiscal Year 2023 outlook to between negative 8 percent and negative 4 percent sales growth in constant currency, and between $650 million and $750 million in non-GAAP operating income. The Company’s previous outlook was between 2 and 4 percent sales growth in constant currency, and $875 million to $925 million in non-GAAP operating income.
Increased Share Buyback Authorization
Logitech’s board of directors has approved an increased share buyback authorization up to $1.5 billion. This expands the Company’s current $1 billion, three-year share buyback authorization. To date, the Company has repurchased approximately $697 million of shares in the current program. Subject to approval from the Swiss Takeover Board, the increase will provide for a total authorization of approximately $800 million remaining for repurchases over the next 12 months of the program ending in July 2023.
Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results videoconference available online on the Logitech corporate website at http://ir.logitech.com.