Logitech International SA (USA) (NASDAQ:LOGI) has reported a decline in third quarter sales and cut its sales forecast for the remainder of its financial year, sending its stock lower.
The Swiss multinational manufacturer of computer peripherals and software reported preliminary net sales of between $1.26 billion and $1.27 billion for the three months ended December 31, 2022, a 22% to 23% decline from a year earlier. In constant currency, they were 17% to 18% lower.
Preliminary GAAP operating income of between $171 million and $176 million was 33% to 35% lower than the $263 million reported in the same quarter a year ago, the company said.
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“We are disappointed in these preliminary third-quarter results. They reflect challenging macroeconomic conditions including a slowdown in sales to enterprise customers in the quarter,” Logitech president and CEO Bracken Darrell said in a statement.
“Based on the softer than expected third quarter results, and uncertainty in supply availability related to the current Covid outbreak in China, we are reducing our full-year outlook.”
The company has adjusted its fiscal year 2023 outlook to reflect a 13% to 15% decline in sales in constant currency, down from its previous forecast of a 4% to 8% reduction.
“We will continue to manage our costs to drive solid operating performance and will provide more detail on our earnings call later this month,” Darrell added. “We remain confident in our strategy and the long-term trends that fuel our business.”
The company expects to announce its full financial 3Q results on January 23. Its shares were down 17% to $56.78 in early afternoon trade in New York, mirroring a similar decline in Switzerland.
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