Logitech International, a prominent computer peripherals manufacturer, announced a decline in sales during the second quarter, revealing the challenges it has encountered in sustaining the growth it experienced throughout the pandemic. In an official statement released on Tuesday, the company disclosed that sales had dropped by 8% to $1.06 billion for the quarter ending in September.
During the height of the COVID-19 pandemic, Logitech experienced a surge in demand as individuals around the world rushed to purchase computer mice, keyboards, and webcams for remote work and leisure activities at home. However, the subsequent decline in sales has raised concerns.
Nevertheless, Logitech reported robust sales of $2.03 billion during the first half of the year, surpassing its initial forecast of $1.875-$1.975 billion. Additionally, the company announced a 17% increase in non-GAAP operating income, reaching $183 million for the second quarter. For the first half of the year, non-GAAP operating income exceeded expectations at $292 million, surpassing the initial forecast of $180-$220 million.
The search for a new CEO to succeed the long-standing executive, Bracken Darrell, who departed in June, is underway. The company’s co-founder, Daniel Borel, who established Logitech in 1981 with two others, recently criticized the company for its performance and urged the board to appoint a new chairperson, emphasizing the need for someone capable of adapting to the evolving market landscape.
Logitech has been actively pursuing a global search for its new CEO, and the company indicates that the board is approaching a final decision on this matter. Furthermore, Logitech has set its fiscal year sales expectations in the range of $4-$4.15 billion, with non-GAAP operating income projected to be between $525 million and $575 million.