By John Revill
(Reuters) -Logitech International raised its sales and profit outlook for the first half of the financial year 2024 on Tuesday, sending its stock sharply higher.
The maker of computer keyboards, mice and webcams saw its stock trading nearly 8% higher in Switzerland after its first quarter results beat forecasts.
Sales in the three months to end of June fell 16% to $974 million, ahead of market forecasts for $926 million, while non GAAP operating profit of $109 million also beat expectations.
Chief Financial Officer Chuck Boynton said Logitech had gained market share and improved profitability by reducing inventory levels at both its factories and sales channels.
But the executive said consumer confidence remained fragile in many countries.
“We entered the year with a lot of uncertainty and volatility, and in the last quarter we published quite good numbers relative to expectations,” Boynton told Reuters.
“But we are not where we want to be.”
Logitech has been suffering a downturn after riding a boom during the pandemic when people stocked equipment to work from home.
Boynton said he did not know if the U.S.-Swiss company had now hit the bottom of its current sales slide.
“We are cautiously optimistic. We don’t know if we are at bottom yet, we are still in transition,” he said.
Logitech raised its guidance on Tuesday, saying it now expects first-half sales of $1.875 billion to $1.975 billion, up from the previous projection of $1.8 billion to $1.9 billion. It also raised its expectations for full year adjusted operating profit.
In its first outlook for this business year, Logitech also forecast full year sales of $3.8 billion to $4 billion.
Logitech is also seeking a successor to long-standing CEO Bracken Darrell, who stepped down last month to become the CEO of VF Corp, the maker of Vans sneakers and The North Face outdoor wear.
CFO Boynton declined to comment when a replacement for Darrell would be found, with the company saying its search was progressing well.
“This is a dream job for many, many CEOs,” he said.
(Reporting by John Revill in Zurich and Shivani Tanna in Bengaluru; Editing by Subhranshu Sahu, Varun H K and Christina Fincher)
