Logitech warns on FY 2022 outlook after pandemic-boosted FY 2021

REUTERS: Computer goods maker Logitech International on Monday warned operating income for fiscal 2022 will drop back from a 2021 boom driven stoked by demand for mice and keyboards for work and leisure at home amid the coronavirus pandemic.

Operating income for fiscal 2022, measured under non-Generally Accepted Accounting Principles (non-GAAP), is expected to be between US$750 million and US$800 million, the Swiss-U.S. company said. That's down from the US$1.1 billion it now expects for fiscal 2021, a fraction up from a previous estimate of US$1.05 billion.

Sales for fiscal 2022, measured in constant currency terms, will be about flat - plus or minus 5per cent. For fiscal 2021, Logitech raised its sales growth forecast to about 63per cent in constant currencies, up from the 57-60per cent range it previously expected.

In January, Logitech reported a more than three-fold jump in quarterly adjusted operating income, benefiting from the pandemic-driven boost in demand for work-from-home products and gaming accessories.

Sales at the company, which makes mobile speakers, keyboards, mice and video conferencing devices, increased 85per cent to US$1.67 billion in the third quarter, which has traditionally been the company's biggest sales period.

The company also said on Monday its expectations of long-term sales growth in constant currency have increased to 8per cent to 10per cent, up from high-single digits and that its non-GAAP operating margin target has improved to between 14per cent and 17per cent, up from 11per cent to 14per cent.

(Reporting by Kanishka Singh in Bengaluru; Editing by Kenneth Maxwell)