Logitech International (LOGI) continues to face challenges in its quarterly results as soft IT spending impacts the demand for its personal computer (PC) peripheral products, such as keyboards, PC webcams, video collaboration tools, and pointing devices.
For the first quarter of fiscal 2024, Logitech’s revenues and non-GAAP earnings per share declined by 16% and 12%, respectively, compared to the previous year. The weakened demand for its products, combined with lower revenues, an unfavorable product mix, and foreign exchange pressure, contributed to the decline in earnings.
In recent years, Logitech has experienced increased demand for its PC peripherals, driven by the work-from-home and learn-from-home trends. However, the current global economic conditions, including ongoing macroeconomic and geopolitical issues, have led enterprises to delay their large IT spending plans. Moreover, industry layoffs and growing recessionary concerns have further dampened the demand for PC peripheral products from organizations. Additionally, high inflation and interest rates have resulted in declining consumer spending, affecting the demand for PC peripherals.
Furthermore, the need for product refreshes has decreased, as most of the global working population already upgraded their PC and related peripheral products approximately two years ago during the pandemic-induced work-from-home trend.
Logitech’s key product categories, including PC webcams, video collaboration tools, keyboards, combos, headsets, and pointing devices, have all experienced significant sales declines compared to the previous year. Revenues from PC webcams, video collaboration tools, keyboards and combos, headsets, and pointing devices dropped by 31%, 23%, 21%, 20%, and 5%, respectively, year over year.
In summary, Logitech’s Q1 earnings have been impacted by subdued demand for PC peripherals, primarily due to soft IT spending and economic uncertainties. The company faces challenges in regaining momentum as market conditions continue to influence customer preferences and purchasing behavior.
Featured Image: Freepik @ pikisuperstar
Author Stephanie Bédard-Châteauneuf 
