Logitech stock has taken a nose dive overnight after the Companies CFO quit the global accessory Company without any warning, he is the second senior executive to exit the business after former CEO Bracken Darrell resigned from the business to run a global clothing and shoe Company.
CFO Chuck Boynton, like, Darrell told shareholders he was leaving the company “to pursue another career opportunity”, the stock fell 8%.
To help allay investor concerns that this departure might imply a problem with Logitech’s business, management reaffirmed its sales forecast for fiscal 2024, previously disclosed in January with several categories including video collaboration delivering increased revenues.
ChannelNews understands that the resignation of Boynton came as a shock to management with the business now engaging head hunters to find a replacement.
Some analysts claim that the sudden resignation appears to imply that Boynton has been poached by another employer with some speculating that he could be joining former Logitech CEO Bracken Darrell who is President and Chief Executive Officer of VF Corporation.
One analyst said,” He’s clearly not been fired”.
The good news is that Logitech is looking to be in a healthy position with the Company reaffirming its guidance for the year, with the business tipped to deliver in excess of US$4.2 billion in sales.
While this is down 6% or 7% year over the year, it’s in line with expectations due to current market conditions.
Despite a dip in sales management is confident that earnings will be up between 4% to 12% to a range of US$610 million to US$660 million.
The bad news is that this guidance came in the form of “non-GAAP operating income.” Actual net income, including taxes and other costs, will probably be less than that.
