Computer accessories brand Logitech revealed the results of its third-quarter sales on Tuesday, which showed a 12% drop from the previous quarter's figures.
Logitech's slowdown in growth confirmed its findings from its initial reports, wherein consumer trends have shifted to conservative spending due to mounting inflation and the shift back to onsite business operations.
Before the previous fiscal year, Logitech enjoyed a boost in valuation due to the sudden demand for computer products as lockdowns forced the masses to do business and leisure within the confines of their homes.
The Swiss manufacturer also faced issues in product sourcing as supplies from its offshore factories were impeded by the recurring shutdowns caused by the new wave of COVID-19 cases in China.
Logitech's financial outlook showed a steady decrease, with its fourth-quarter sales dropping to $1.27B. This matches the company's initial data on Jan 11, which ranged its revenue from $1.26B to $1.27B.
When it comes to its non-GAAP operating revenue, Logitech experienced a 32% decrease, with its profits dropping from $302M to $204M. This is in line with its initial findings, estimated at $198M to $203M income.
Logitech Chief Executive Officer (CEO) Bracken Darrell states, "These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower enterprise and consumer spending."
The computer brand maintains the same expectation for its 2023 sales trajectory anticipating another 13-15% drop in annual sales and a non-GAAP operating revenue ranging from $550M to $600M.