- Shares fall 3.6% in early trading
- Now expects slower sales growth in 2023
- Says Ukraine conflict behind slower growth
May 3 (Reuters) – Logitech cut its 2023 outlook on Tuesday, marking a rare downgrade from the computer mouse and webcam maker, but said it still expects to gain from people buying equipment as they move to hybrid working.
The Swiss-U.S. company, which saw strong sales during the pandemic, blamed the downgrade on the Ukraine conflict as it has halted its activities in both Ukraine and Russia, where it generates 2% of its sales.
Logitech, whose products have been bought by people equipping their home offices, said it now expects sales growth in constant currency of 2 to 4% in the 12 months to the end of March 2023, from a previous mid-single digit increase forecast.
Register now for FREE unlimited access to Reuters.com
The more cautious assessment sent Logitech shares down 3.6% in Switzerland.
Ukraine apart, however, CEO Bracken Darrell said the company should continue to see strong sales growth as hybrid work models will create demand for its products both at home and in the office.
“We are focused on three categories – gaming, PC peripherals and video collaboration. These categories grew by 12% last year on top of 74% the year before,” Darrell told Reuters in an interview. read more
“The businesses we are really focused on are growing,” he …….