Logitech Reports Better-Than-Expected Results, Boosted by US Tariff Refund
Logitech International reported stronger-than-expected quarterly sales and profit for the three months ending June. The Swiss-US tech company's non-GAAP adjusted operating income rose to $290 million, up from analysts' forecasts of $209 million. A key factor was a $61 million refund related to U.S.-imposed tariffs on products made in several Asian and Latin American countries and shipped to the United States. The company's sales increased 7% year-over-year to $1.23 billion, exceeding expectations of $1.20 billion. Logitech also noted strong demand for its gaming equipment, pointing devices, and video-conferencing tools. However, it warned that a temporary shutdown at one of its semiconductor suppliers would impact second-quarter sales by about $20 million and third-quarter sales by up to $200 million. Despite the disruption, Logitech remains optimistic about maintaining strong profit margins for the year as it shifts production toward unaffected products and higher-margin categories. The company expects Q2 revenue between $1.185 billion and $1.220 billion.
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