Logitech International reported better-than-expected quarterly sales and profit, helped by a big refund of tariffs imposed under U.S. President Donald Trump.
Quarterly Results
The Swiss-U.S. maker of computer mice, keyboards and headsets reported non-GAAP adjusted operating income of $290 million for the three months to end-June, up 44% from a year earlier and well ahead of analysts’ forecast of $209 million.
Results were boosted by a $61 million tariff refund related to products made in China, Vietnam, Malaysia, Mexico, Thailand and Taiwan and shipped to the United States, Logitech’s largest market.
U.S. companies are seeking to recover up to $166 billion in tariffs after courts found duties imposed by Trump last year were collected illegally and must be repaid.
Even excluding the refund, Logitech’s profit for the first quarter of its fiscal year was 14% higher than a year earlier.
Quarterly sales increased 7% to $1.23 billion, ahead of analysts’ expectations of $1.20 billion, according to a Visible Alpha consensus.
Logitech said it was seeing strong demand for its gaming products, pointing devices and video-conferencing equipment, with momentum expected to continue for the rest of the year.
However, the company warned that a temporary shutdown at a semiconductor supplier’s factory would reduce sales by about $20 million in the second quarter and by up to $200 million in the third quarter.
Logitech did not identify the supplier or disclose the cause of the disruption. It said the affected component is used in only some of its products and it is seeking alternative suppliers. The company expects the issue to be resolved by early 2027.
It also said it still expects a full-year profit margin towards the top end of its 15% to 18% target range as it shifts sales towards unaffected products and higher-margin categories.
As usual, Logitech did not provide full-year guidance. It forecast second-quarter sales of $1.185 billion to $1.220 billion, representing growth of 0% to 3%, including the impact of the supplier disruption.
The company expects non-GAAP operating income of $185 million to $210 million in the quarter.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
