Logitech International, a maker of peripherals for personal computers and other devices, late Tuesday reported better-than-expected earnings for its fiscal fourth quarter while sales were slightly lower than views. Logitech stock wavered on the news.
The Lausanne, Switzerland-based company earned an adjusted 93 cents a share on sales of $1.01 billion in its fiscal Q4 ended March 31. Analysts polled by FactSet had expected earnings of 88 cents a share on sales of $1.03 billion. On a year-over-year basis, earnings fell 6% while sales were flat.
For the June quarter, Logitech forecast sales of $1.1 billion to $1.15 billion, vs. Wall Street's target of $1.1 billion. In the year-ago quarter, Logitech generated sales of $1.09 billion.
In after-hours trading on the stock market today, Logitech stock alternated between modest gains and losses. It was flat in recent trades. During the regular session Tuesday, Logitech stock dipped 0.3% to close at 78.21.
"Thanks to our diverse global footprint, strong brand and resilient operations, we are in a strong position to navigate the unpredictable market conditions ahead in fiscal year 2026," Chief Executive Hanneke Faber said in a news release. "In this dynamic environment, we will focus on three core principles — playing offense, disciplined cost control and agility."
The Trump tariffs have weighed heavily on Logitech stock. Logitech shares plunged 16.7% on April 3 after President Donald Trump announced his "Liberation Day" tariffs.
On April 10, Logitech reaffirmed its guidance for its just-ended fiscal 2025 but withdrew its outlook for fiscal 2026, citing the "uncertainty of the tariff environment."
News reports this month said Logitech raised prices in the U.S. by as much as 25% after the tariffs took effect. The U.S. accounts for about a third of Logitech's total sales.
"We never like to increase prices, but in this context we thought that was a responsible thing to do," Faber said in an interview with Investor's Business Daily. "So we've done a very targeted price increase, not on every product."
Moving Production Out Of China
Logitech's products span such categories as keyboards and mice, webcams and microphones, gaming peripherals and headsets.
Among its customer base, Logitech's consumer sales have proven resilient lately, Faber said. Meanwhile, the business market has been more cautious, she said.
To diversify its supply chain, Logitech has been shifting its production from China to other countries since 2019. It now has manufacturing operations in five other countries: Vietnam, Malaysia, Thailand, Taiwan and Mexico.
"Today 40% of our product in the U.S. originates in China. That's way down from a few years ago. But we believe by the end of this calendar year that will be down to 10%," Faber said.
On Feb. 14, Logitech stock hit a more than three-year high of 105.65. That followed its better-than-expected fiscal Q3 earnings report on Jan. 28.
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