Logitech Ups Forecast As COVID-19 Growth Just Keeps Rolling On
Logitech, a major supplier to JB Hi-Fi, Harvey Norman and The Good Guys, has raised its 2021 sales growth forecast to a staggering 63 per cent.
In Australia, Logitech is a major player in the audio market with its Ultimate Ears brand, plus in the gaming and computer accessories market – all categories that have boomed during COVID-19 lockdowns.
The Switzerland-based company claims that growth trends in remote work, video collaboration, eSports and digital content creation would continue beyond the 2021 boom.
Shares in the company were up 3.2 per cent today after it raised its 2021 sales growth forecast to about 63 per cent from the 57 per cent-60 per cent range it previously forecast.
“Several years ago, we set out to become a design company and positioned our business against long-term growth trends in remote work, video collaboration, eSports, and digital content creation. These trends have accelerated over the course of the fiscal year and have seen a coming of age for Logitech,” Chief Executive Bracken Darrell said in a statement.
Operating income for fiscal 2022, is expected to be US$750 million to $800 million, the Swiss-U.S. company said, down from the $1.1 billion it now expects for fiscal 2021 and a fraction up from a previous estimate of $1.05 billion.
“The outlook increase is particularly surprising in the longer term, as it is relatively substantial,” Zuercher Kantonalbank said in a note, adding the guidance implied the company could benefit from various growth drivers even after the pandemic.
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.
The company also said on Monday its expectations of long-term sales growth in constant currency had increased to 8 per cent to 10 per cent, up from high-single digits and its non-GAAP operating margin target had improved to between 14 and 17 per cent, up from 11 to 14 per cent.