Logitech has raised its profit and sales outlook, after their stock took a dive, following a recent fall in sales and the announced exit of their CEO, however they are still uncertain as to where the market is set to go as more pain is forecast for retailers.

The improved forecast for the first half of the European financial year 2024 sent its stock sharply higher with the stock now trading at US$70 dollars after falling to US$54 in late June.

Darren Bracken departing CEO.

The maker of computer keyboards, mice and webcams saw its stock trading nearly 8% higher in Switzerland after its first quarter results beat forecasts.

Sales in the three months to the end of June fell 16% to $974 million, ahead of market forecasts of $926 million, while non-GAAP operating profit of $109 million also beat expectations.

Chief Financial Officer Chuck Boynton said Logitech had gained market share and improved profitability by reducing inventory levels at both its factories and sales channels.

But the executive said consumer confidence remained fragile in many countries including Australia where the problem is retail discounting and average selling price of goods.

“We entered the year with a lot of uncertainty and volatility, and in the last quarter we published quite good numbers relative to expectations,” Boynton told Reuters recently.

“But we are not where we want to be.”

Logitech has been suffering a downturn after riding a boom during the pandemic when people stocked equipment to work from home. Also causing problems is a slump in demand for gaming products including PC’s.

Boynton said he did not know if the company had now hit the bottom of its current sales slide.

“We are cautiously optimistic. We don’t know if we are at bottom yet, we are still in transition,” he said.

The good news is that Logitech has raised its guidance claiming it now expects first-half sales of $1.875 billion to $1.975 billion, up from the previous projection of $1.8 billion to $1.9 billion. It also raised its expectations for full year adjusted operating profit.

In its first outlook for this business year, Logitech also forecast full year sales of $3.8 billion to $4 billion.

Logitech is also seeking a successor to long-standing CEO Bracken Darrell, who stepped down last month to become the CEO of VF Corp (VFC.N), the maker of Vans sneakers and The North Face outdoor wear.

CFO Boynton declined to comment on when a replacement for Darrell would be found, with the company saying its search was progressing well.

“This is a dream job for many, many CEOs,” he said.