Logitech has recorded a sales figure of $1.27bn for the third quarter of the fiscal year 2023, a 22 per cent drop from the same quarter in 2022.
The company revealed the figures to investors during its Q3 earnings call on Tuesday, January 24.
The loss in sales has been attributed to the challenging macroeconomic environment in the market, with the threat of recession looming.
Bracken Darrell, Logitech President and Chief Executive Officer, said:
“These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower enterprise and consumer spending.
“With these external headwinds, we continued to aggressively manage our costs in the quarter while at the same time growing market share in key categories.
“Our long-term strategies remain unchanged, and we remain committed to the growth trends that fuel our business.”
Video Collaboration
Logitech saw a decline in sales across all its product categories during Q3, with video collaboration sales dropping by 21 per cent.
The company saw its sales of conference cam units decline year-over-year; however, it did see a rise in the average selling price (ASPs) per room kit.
Darrell stated: “The mix of our conference room sales is skewing to higher-end cameras.
“And the attach rate of accessories and services to our conference room cam sales is growing, which drives our sales revenue per room higher, evidence that our strategy of developing integrated room systems is working.”
Video collaboration accounted for the most significant negative swing in Logitech’s portfolio compared to Q2 FY 2023 after the category had previously consecutive quarters of growth.
Logitech put the decline in sales across all its product lines down to consumer purchasing was concentrated on promotional weeks throughout the quarter, combined with lower overall spending from consumers and enterprises.
A Change in Outlook
Darrell branded the Q3 results as “disappointing” and reaffirmed the adjustment to the company’s outlook for 2023.
Earlier this month, Logitech adjusted the FY 2023 outlook to between negative 15 per cent and negative 13 per cent sales growth.
When speaking to investors on the call, Darrell commented: “Enterprise demand deteriorated versus last quarter, and consumer purchases were soft and more concentrated during promotional weeks than is typical.
“Those factors compressed our net sales and gross margins and resulted in a revised the fiscal year 2023 outlook.
“We revised our financial outlook for FY 2023 based on three items: softer than expected third-quarter results; enterprise and consumer demand, which may remain weaker than we previously expected; and uncertainty in supply availability related to the recent COVID outbreaks in China.”
Hybrid Work is an Area of Opportunity
In November 2022, Logitech launched its ‘New Logic of Work’ commitment designed to empower organisations and their people to expand the possibilities of hybrid work.
According to the company, the New Logic of Work expresses how Logitech understands work in the modern age and how the company designs solutions for people in all spaces.
Through the commitment, Logitech aims to deliver personal and team workspace products and solutions that reinforce the key need to make hybrid working a success.
Darrell reaffirmed this commitment during the Q3 call by highlighting that organisations are still making the switch to hybrid working and that it is an area of opportunity for Logitech.
He said: “While the pace of return to offices remains uneven, hybrid work is inevitable. Companies’ approach to returning to the office has been different across industries and geographies.
“I hear a familiar story from CEOs and customers across industries. They’re still working to determine what hybrid model works best for their teams.
“As companies settle on their definitions of hybrid work, we should see investment in personal workspaces and collaboration rooms.
“This investment will happen. It’s just a question of timing. Product innovation matters more than ever.”
Logitech says it is providing organisations with the tools needed to ensure and maximise productivity in an anywhere working world.
It does this with a full suite of hardware, software and services across mobility, the desktop ecosystem and conference rooms of all sizes.
Logitech believes that to ensure hybrid working success, organisations must equip their employees with tools that consider equity, inclusivity and flexibility to enable flexibility and optimise performance.
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