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

FILE PHOTO: Logitech keyboards are seen in the computer shop in Zenica, Bosnia and Herzegovina October 20, 2020. REUTERS/Dado Ruvic

(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 $750 million and $800 million, the Swiss-U.S. company said. That’s down from the $1.1 billion it now expects for fiscal 2021, a fraction up from a previous estimate of $1.05 billion.

Sales for fiscal 2022, measured in constant currency terms, will be about flat – plus or minus 5%. For fiscal 2021, Logitech raised its sales growth forecast to about 63% in constant currencies, up from the 57-60% 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 85% to $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 8% to 10%, up from high-single digits and that its non-GAAP operating margin target has improved to between 14% and 17%, up from 11% to 14%.

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