Logitech International (LOGI) 23 Jul 242025 Q1 Earnings call transcript

Good morning and good afternoon. Welcome to Logitech's video call to discuss our financial results for the First Quarter of Fiscal Year 2025.

Joining us today are Hanneke Faber, our CEO; and Meeta Sunderwala, our Interim CFO.

During this call, we will make forward-looking statements, including with respect to future operating results under the safe harbor of the Private Securities Litigation Reform Act of 1995. We're making these statements based on our views only as of today.

differ could results actual materially. Our obligation We of or any update statements. undertake no these revise to

We non-GAAP results also factors forward-looking reconciliation our will statements discuss of that between find you use financial GAAP a could can impact and results measures non-GAAP non-GAAP and our about financial information the and results, and in These a as at well letter and Relations materials webcast all release this Investor a in are filings our our and press of as our with SEC. call of website. the page shareholder available and

to our noted and sales. recorded you and I the turn website. This periods to encourage in review comparisons year-over-year on being is will We will these now be materials Unless are over net call call otherwise, available carefully. constant for Hanneke. and currency replay between a

Nate, of Call generating basis that strong. of Thank further and year-over-year first everyone, to our cash strong started growth XXXX welcome, We the sheet. you, our our say expansion, Year. bolstering while year of off margin Pleased XX% we to Earnings balance levels and delivered points Fiscal XXX

categories are healthy the ability outlook, business momentum in product share in on market we've confidence which in raising shortly. we our the touch most fiscal our to I'll key to execute, seen our of Given gains our and 'XX

performance. give which You full can read the review and full quarter and you a will financial our details shareholder letter, of our our of operating

then in transition few spend to like to I'd this to and some a to on we'll context But call provide our results. minutes color Q&A.

on touch points. briefly me X Let

growth. our low sales net growth second super the I'm First, QX see consecutive of quarter to teens, pleased in

be growth. channel -- top this quarter end last As Even nearly our selling you working channel investments of holiday a our we demand this big story strategic Back-to-School for was told of capital investments, into part Amazon inventories our reminder, X/X that June these normalize own a prepared we strategic quarter as Prime, that you XX, like line season. and after seasons for planned the would

X.X, plans results on well. of healthy with capital balance business. needs discipline, inventory results partners inventory was with our working XX% down last demonstrating with on notable levels inventory teams channel margin fiscal and year, line nearly from last we exceptionally which in of well Together our increase by beginning And our ability strong focus terms our on enabled operating in 'XX. to at our since also turns in our top of we've ranges, remain the owned focus These our the The lower expansion. growth continued delivered were year and on end execution management. the our of command our and drove from the At QX year. the weeks distribution operational X.X% QX, operated of were and lean a strong upper within hand

excited product innovation this I'm innovate. talked our about I quarter advancing to about our fiscal strategic Second, that year, priority last lineup for

or over to learning technologies, diversified a all AI meeting in across own introduced to products RightSound and released algorithms participating camera with MeetUp set of to example, a our scale, X.X the and now recently to our these products conference instances. the at Many global categories. builder for that proprietary recently of data X prompt product in the equitable us for And finding meeting experience deliver ability has truly launch in machine leverage. And models, those a million been the leverages remotely. are used room smart of our saw with RightSight continue XX will focus AI. This almost power launch ways advantage quarter You design-led we innovations a first competitive of is leverage

year 'XX operating increasing to X% now income. and This net sales fiscal start to trends. solid for our net our and outlook million contemplates be 'XX targets operating fiscal given 'XX updated non-GAAP Third, between outlook, year, year both non-GAAP updating $XXX modestly expected $XXX our Fiscal the are and fiscal sales growth X to income X%, 'XX and discrete million. is be is between we expected

volatile top demand, the QX discussed was positive growth same business in backdrop. clearly this drove capital though, a time global Our healthy investments sales. earlier, line momentum with amidst strong. uncertain in occurred working At increase the the customer End coupled I and economic net

pleased and So future first pragmatic risks our quarter about while results, we with we're uncertainties. remain

that published Now our XXXX before we I'd highlight we move to just like yesterday. impact to Q&A, report

commitment to business buyers talk enterprise fact And about heard There's their the informed that report, with approach a proud X of carbon of annual accountable. of annual label, impact technology our to make out decisions an be lot products all, strong and purchases. pursue to are results. sustainability. to and scorecard provide ambitious use helping this set while plastic transparent this this comfortable sustainability, as We X such You've sustainability of about our now recycled consumers products and XX% goals our this the and us holds we us I'm very scorecard. delivering above environmental of in commitment

priorities as summary, So on play. and human work focus execute potential with in our our pleased we ability I'm in on to extending strategic

that, we're that the first Q&A. And you. right go Thank with Our to let's results Nate, on quarter track. demonstrate

for first ready question. now are Layla,we our

[Operator Instructions]

first JPMorgan. comes Our from question Samik from Chatterjee

believe him would Samik, can help you're Layla, out, be you I if great. mute. that on

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input. We'll move next go you You and to to the analyst our may to we'll return change ahead need and Samik.

Iffert Jorn will Our from next question come UBS. from

Because or you follow-up, to in do trending question same please. and is, QX? out and not starting have the sales above and in There's then corridor the now you to in your QX sell sell through guidance see The a report? for starting reiterated question one seasonality

our guess I forward-looking about So outlook. asking you're

the bit, really bottom now we've and plus X in see X sell-in bit same talked on QX, a plus also line, X reflect we QX X to to what to see, reflects What change little seen which just larger helpful we've X maybe minus last X to line. raised we to can QX that? as raised At top planned. X. the a is don't a we've does that higher where touch the quarter, So X, to we're than pleased you And to on time, little about from be will on in which and That So by. demand the is that sellout. is from

shifting going need selling ready that QX, In seasons, We the mode, at we're to we QX and in the reverse. those and get have inventory holidays. big channel for QX boost growth to to because to dynamic is especially

will there. sell-in. changes than So No be larger sellout

but change seeing is through we for higher forecast than rest you're new of we've our in are no is demand what year. So that in seen that flowing that the QX, the the increased expected

then me a And allow follow-up.

the see Given June you that by exit weakness the recently, in in consumer we and May, have do seen increased rate? again your have so many promotion from companies So QX?

No, not yet.

I a been our our disciplined. think And been So part results. has teams extremely just good discipline promotional have QX of

market. going little So But is not increase yet. may as looking is in the of part We're a necessary forward. of much it going again, forward promote as to always bit that caution our is in

question comes next from Capital. from Our Loop Ananda Baruah

call, the is, the I on is Yes, first two, Hanneke, I guess last could. one this big really and if picture. more

expansion go geographic as guess, well. impactful of taken true-up, see that there been them And play? sort follow-up work and wallet the actions to the share, talked you as about XX I of any incremental quick with last or you kind of have I BXB opportunities have being thoughts and kind just And then of most think I a days those? progress

Yes, few by. absolutely. for that geography, it the things question. to I'm pleased but No, early When seeing broad-based those comes all too And to a Clearly, we're of things. working quarter. it's changes, we're really there's X growth massive see in thanks on

up XX% XX%. up So X%; up the EMEA Americas APAC

performance where has that's broad-based our and from just out So particularly execution EMEA, stand outstanding. been really

And both services also in quarter, to When on see. product which great continue yes, we probably MeetUp robust the build the up capabilities. pleased and the are little organizational X%. been, had comes segment, it and where down to we And X a the a see has on it is that's Market launch in also the BXB, than we more side. great of to growth to talent side, doubling but

about excited have still we're we steps taking much where so really business BXB I'm that there the So on to double opportunity. down

we've new then on offices Play it and in on space some workplace talked finally, terrific a very, Work world again, the us. for desk. expansion, a quarter, offices. XX% the mostly comes video first most today, in great like program. when more And our very conference, other and behind our on the than that's products And to a we in But I in to BXB, I you I had you results portfolio. how But again, clearly focus Education about and green strong, at That's education education work focus quarter. Rugged in on. We is the don't multiyear results people started shoots. growth in the

And to is then that. love I more So come.

quarter that We Inc., headset. verticals of for a launch new imagine to small some the goes can Again, in as multiyear a these see. green shoots future. the of with. work also MX But about the into well to announced in stylist I'm is the the how the will Oculus which start starting be excited we're And again, is effort. you This that Meta

dovetails that super I helpful. follow-up. into That's appreciate the context. And the

of of the an Would or refresh, to the the term with benefit AI keyboards about some would how is think pulls. is would so the context Sort company's there quarter, company AI does love investment sort in throughout from and Any pull? benefiting community content, the that of even around keyboard great, preparing the keyboard sort what view AI company to that? of business of there idea agree of bigger. be and driven, from near PC And the is which is component sort sort that

Yes.

and a think started, very great business. That's core keyboards. the of top core we is where still line it's That's we're business. the bullish of the mice and our on I

are hurt PCs. it new not to We are if correlated one-to-one buying refreshes, certainly PC but can't people

So then a play thing. And that's big will role. AI a good

always and start and model the We've human really the this company large human mice of link the language the the can ago. ever now been between be our since interface years keyboards. via machine And we XX

AI That's allows popular, is shortcut Prompt The to software unique of And to user our of pretty since the to April. And that it's piece Builder, do started free quite since good. Logi April. in chat a mice keyboards middle million so GPT. and sits X.X all that. you we've It interactions

language excited, exciting. it's but I'm start that the we're is how large as models and to through of interface keyboards, again, mice the serving this just our

Instructions] [Operator

follow-ups. will this at accept There also time, hands We Nate. now raised no further are

there if it We'll give and wrap it no minute one other questions. are we'll then

appear Yes, now from will it He's to promoted in with a to moment. being and a panelists be Jorn. have follow-up us

performance? Yes, it maybe I follow-up, one, distinguish please. price To mix volume is significant I a a or your still you mean if For price quarter, the contributor with between is here, can driven? price at this may. volume mainly start and

would mainly I volume say that driven. it's

have some in Our fairly fairly prices has it We last do stayed have quarter, promo steady. flat stayed with the but quarter.

follow-up. allow And a then me you if

I think call, the mentioned driver. last be you key in the APAC earnings should

Now out what it a course, full is was for but mentioned. key the you it driver, of turns EMEA year

has strongest last your regions Is the months changed peripheral tablet and growing it changed? same still category? has view X over now would categories? So also which on Or X be the on this to the

Yes. said sure should actually we I'm not that Apex be. that

I be impacts might on talked gross margin. about what we think

So U.S. a margin. is worse. APAC And little gross little if a are and the mix better, an impact is on Europe

true tailwind gross is it's video margin. And on If the positive, grows on So same gross a conferencing with that's a a that margin. business. it's faster, tailwind our

of been particularly And a we And star. think was the about last in demand were again, So plus robust execution super way. talked what a had Europe that was little really I'm a that quarter. XX%, good with profile driving a That our strong. that seeing growth. pleased Europe unexpected portion versus I we the but said, -- result APAC at we it increased of has broad-based that

where If our we're really seeing you a where fantastic you've we that Market in way mobile for increases you're and there versus shop, really line been people user-centric that versus to we've see our shelf versus Media place MX double-digit to built, good looks fantastic, baseline, recently, can ERGO seeing stores. which

done also Logi we in-store and has a Play then Race our And simulation job online with days. and consumers Europe engage wheels. great with LogiPlay

of So they a our product. again, actually play And that's great with driver sales.

XX%. growing market in European kudos certainly that's to And the teams but So there. okay, of team, Europe the our is execution really to not testament a our

was number one said give point but giving on And wanted that promo. promos. you favorability Jorn, actually, And as of sequential I we I mainly -- the it clarification, did one year-over-year, a to on was have is volume. just I before, you

Our question from comes next go Glemser Please ahead, Berenberg. from Lucas Lucas.

[Operator Instructions]

All questions right. further have this at to no we seem Maybe time.

you you, your Thank Hanneke? this thank for everybody, and morning. questions

Yes. you, all. you Thank Thank Nate.

Thanks for be Of do for the course, if continue everything here. the Samik, and I'd you questions, quarter, to again, us Lucas, for in logistic interest have the Thanks follow-ups. your did in around teams there other they Logitech. you will say to thank not throughout the world year. to joining be remiss And we'll

Looking forward everyone. to Thanks, seeing you next quarter.