Logitech International S.A. (NASDAQ: LOGI) fell more than 17% Thursday morning after the technology Company has reported preliminary unaudited financial results ranges for the third quarter of Fiscal Year 2023 ended on December 31, 2022.
The Company reported that preliminary third quarter net sales are between $1.26 billion and $1.27 billion, down between 22 and 23 percent in US dollars and 17 and 18 percent in constant currency, compared to Q3 of the prior fiscal year.
“We are disappointed in these preliminary third-quarter results. They reflect challenging macroeconomic conditions including a slowdown in sales to enterprise customers in the quarter. Based on the softer than expected third quarter results, and uncertainty in supply availability related to the current Covid outbreak in China, we are reducing our full-year outlook,” said Bracken Darrell, Logitech president and chief executive officer. “We will continue to manage our costs to drive solid operating performance and will provide more detail on our earnings call later this month. We remain confident in our strategy and the long-term trends that fuel our business.”
Logitech has also provided an outlook, indicating that it has adjusted its Fiscal Year 2023 outlook to between negative 15 percent and negative 13 percent sales growth in constant currency, and between $550 million and $600 million in non-GAAP operating income. Previously, the company had provided an outlook of between negative 8 percent and negative 4 percent sales growth in constant currency, and between $650 million and $750 million in non-GAAP operating income.