Logitech International (LOGI) 22 Oct 242025 Q2 Earnings call transcript

Good morning and good afternoon. Welcome to Logitech's Video Call to discuss our financial results for the second quarter of fiscal year 2025.

Joining us today are Hanneke Faber, our CEO; and Matteo Anversa, our 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, and our actual results could differ materially. to revise obligation statements. of no undertake update any or these We

information of will results, could in GAAP press SEC. reconciliation and financial discuss impact the and filings with release our you results We and non-GAAP our a our and financial also forward-looking factors measures non-GAAP and can results find non-GAAP and about that our use statements between in

will letter Investor and all These available page a a our periods of otherwise, constant materials the net This in be as We are the well comparisons currency and this review carefully. sales. website. for available our call shareholder at to website. these Relations and on as of call replay between you being Unless is year-over-year and webcast encourage are materials noted recorded

I call will Hanneke? to Hanneke. now the over turn

everyone, quarter Nate, our Thanks, call. to welcome, and second earnings

our Anversa. First, you introduce it Financial to Chief my Matteo pleasure is new Officer, to

As to team. make skills a welcome technology, BXB seasoned public global world, to really experiences lived Call. and Italian who terrific and and the Logitech His to perspective his addition has in Logitech. first well around worked industrial diverse American his a brings leadership engineering experience Earnings and an background as him company our CFO, Matteo your suited Matteo,

Now to the quarter.

us out give This quarter, which half first the of closed looking we we strong our We results, said -- fiscal do. we said did forward. what would XXXX with we confidence

Let me touch three on highlights.

growth and Channel responsibly operational for the from within growth another long-term The we was EMEA. model product it including very our was range grew last in discipline. the growth. standout margins. operating operated based and business remained First, And and across we gross profitable, quarters. several both delivered was driven broad we've This healthy the demand, by categories and well which high-quality for quarter above operating with inventories regions,

We're and growth. doubling our product strategic down executed modestly results strong demand. sustained of QX, saw Second, in enterprise demand we effectively consumer on as outpaced enterprise profitable these against In And we workspace the showed we channel. BXB. priorities. personal our growth achieved Collaborations Video

We recognized building Magazine, Logitech Logitech of World's week. TIME the Best we who our were one efforts build continue XXXX were brand, just brand by of that named delighted to the and Brands last

at QX importantly, heart most of excellent holidays. And we an Logitech products the of a for the new does, what is quarter terrific series Innovation innovation. was launched of and ahead very

Rally Gaming the Gaming all-new collaboration introduced Series products, the TKL X In RAPID the XX with to PRO X video gaming, the new launched the called camera the table Keyboard, we Keyboard, Smart including GXXX the and Genshin and In Impact Mouse, in and we best X an utilizes front with exciting PRO of between which camera choose conferencing, the room. software-enabled SUPERLIGHT Switching, Simulation on Racing Momo. solution a Sight AI view Bar

And And MX streamline The workflows. more Creative Quest workspace, And Reality the creative applications drive work launched in popular Mixed the products Ink X iPad, categories. new for continue for is Meta personal we help a to the the Adobe entirely X headset. the touch users we successful category. very strategic efficiently, combo in to to new first integrates with stylus Console MX

working. followed over In on served PLAY over from live customers, X of pad ways Logi other streamed minutes, a new launch hosted Shanghai world, To time and the partners of a the for celebration part by holiday PLAY and the all last events for so why great video awareness These Paris, also as of yourself. for month. excited we events were with first Logi They heading Logitech. XX of a for season, Twitch. drive generate into period future locations. the palpable events hours and for products partnerships. excitement these activation. ever WORK was Logi to of momentum of These global it's they we'll am few of and Logi and global held interaction for share products PLAY were The and you were facilitated in-store impactful and new a I experience around for fantastic a and They short influencers gaming

were in for while really results, am these high-quality results are culture In a we execution actively critical that That of and XXX and is It's strategy gratifying as XXX,XXX at company World's a And are any week employees of for culture the the result survey one And nurture. we proud size. ranked see global XXth, I important, of our something it's we especially why, people a the companies, global great recognized addition strategy. last Forbes by of remarkable Employers. here to Logitech. finally, Best to of

they our for thank results, high-quality and me holiday summary, let and our us champion. of remainder So the culture around world quarter's the all for employees progress people do fiscal this of the the everything and our quarter strategy talented our In they for give our confidence versus year.

me With call over the Matteo. to turn that, let

with and found liked profitable robust growth. Okay. you energized continued of the all share results sustained of am about The chapter financial excited Logitech. I quarter. to but briefly delivered another and letter, joining really I for release thank team Hanneke, driving the incredibly me today. be and can detailed motivated you, the opportunities next be by quarter Thank press the call The ahead in you shareholder what on the let focus with and part

Channel well well sell-through and year-over-year, us as sales growth. for anticipated. we within ended levels points dynamic the that and were net roughly inventory season. played So accounted first, quarter between range, holiday targeted The X% out for X positioning of sell-in the importantly, our demand up very

the the all channels. mentioned, Second, nearly in in growth and business all across Hanneke was diverse and year-over-year consumer net grew We lines sales demand as product our grew the broad-based. regions both

year-over-year. rate Additionally, up basis highly our growth Gross points profitable. margin was XXX was XX.X%,

drove quarter margin durability gross demand our and inventory. Continued excellence. product rate team higher and operational of reserved expansion, strong continued our operating a us year-over-year reduction overall the execution allowed reduction to cost sell testament the of to cost to fifth initiatives commitment previously is This by consecutive

Looking in ahead, quarter XX% expected the rate more typically gross with are higher the margin range year for gross the and slightly quarters. couple of next keep pressure intensity to is third freight rate expect margin XX%. this in higher mind of fiscal our be Please to to we costs in that consumer-focused promotional

such XX% and Logi on quarter to as in through Logi WORK. we were Second XX% invest continue organic growth as the PLAY higher operating of expenses of range initiatives our to annualized end our

generation $X.X And a cash billion. robust, to position remains cash finally, contributing healthy our of nearly

in back In addition, the $XXX $XXX we million ongoing program. quarter returned shareholders. as our billion million of part buyback of We shares $X repurchased to

in which Additionally, our $XXX payment our a increase shareholders million in approved CHF dividend, dividend resulted Swiss francs a X.XX to September. in

summary, profit. year demonstrate inconsistent In fiscal our continue in revenue global often results strong economic our environment. growth And in quarter the volatile our raising outlook our second spite on to of based ability team's we an in half, to XXXX profitable drive and are both and in sustained first results

prepare for that, you let's as the Q&A. PLAY take with Logi And we to

So Nate please video. can the if you roll

[Presentation]

Merchant from Citi. question first will with Asiya come [Operator Our Instructions]

forward? XX% a what gross drivers walk these and were I promotional us if are And wanted the to that were affected inventory can product gross costs margins. margins? margins would the that higher through ask us could Just you about sequentially? sustainably sequentially you walk and better if about the call higher How key the well? any as the bit for should there little think just I that And sustainable drove you understand XX% going reserves how was through here are out doing some to But to we That if around what that like there year, shift be great. spending. would mix think commentary

Sure.

this me one. Let take

extremely margin. continuously cost are strong quarter. value So in in has first team the margin say through done driving current have job, the fantastic really reduction gross came gross activities I the of and continue the pleased operating consistent to team deliver engineering where all, the to a like we

basis, so points accounted for On engineering expansion. basis of the a XXX points the we as basis about of points. mentioned Couple selling remarks, in prepared has value reserved -- XXX about also team fantastic XXX year-over-year. previously job in things, XXX activities reductions, cost done I year-over-year the expanded lift about mentioned I some in remarks, basis the for margin my prepared inventory, of which accounted product

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that reasons a come the team, So margin which compared I in, think extent the gross the in by fundamentally, this little to the -- that's is we were sell a key call, the not margin. in and reduction expecting inventory, where in as were to as well better we little the the previously the expecting we reserved to to the drives ability to product happen better cost prior earnings -- sequential what came increase also and

about are second to the between of XX%. which moving and the part for is To we're be margin the XX% forward? expecting half your question, second expecting we what So gross rate

about the of slight decrease to things. the basis sequential continue XXX by rate. margin have the driven sell to a points a this the gross in first sequential almost in be the we expecting fundamentally to And inventory reserved previously expecting we're we so same are able year. in of that's that And extent done half That's not of margin decrease rate. couple the One, to gross

up bit we And on the the the increase pressure third more we and fact consumer creeping the little seeing obviously, promotion. it's tends third particularly coming entering slight holiday a a are a therefore, are that be we quarter, And therefore, expecting cost more continued promoted. more that little then and that some oriented a -- then And much therefore, -- we bit season from to in are keep of in freight operate. quarter lanes

the that's that dynamic rest So year. are bit a the for we of seeing little the

better relative mean, BXB understand half. into costs, And Is we pretty like look profile pretty at expecting second But to forward, sustainable especially these of they're which going margin forward forward? assume, seasonality margin as your should is going obviously the like the ramp I reductions of we up first reasonable seem things. the outside the other affected levels, gross these you as some absence be in by freight that is efforts, I cost half to and sustainable,

we been we costs think would taking out fantastic where statement has around the of we said, with team as agree I job the done a it very sustainable. pleased is, is actions that and yes, the your taking I material, it have bill describe engineering, with the that I Look, I way value are are, of

year, points has But where year. we term. that think year, we rate cost key total basis long think it's between be to the you at last for if -- very margin I the when the a premature are and I the gross little is expands. actually year-over-year margin XX%, improvement to take reduction XXX talk XX% closed you gross why are expecting the is which team And reasons activity almost the implemented look

next question from JPMorgan. Samik of Our Chatterjee comes

do a you expect I of you the into set at see half? did And the you did question I normal strong seen level it's in the hear mentioned holiday terms a in have normalization I And should holiday second if I outperform And inventory prepare guess we've all, build? primary And we the expecting demand healthy, this hope of sales of can how the some have the it your but me. than the I you level go some -- of reversal inventory guess the are into of for then period, QX? customers a impact sort also start consecutive know the quarter preparation these And period? bit terms is does earlier retailers, mean, that in that to is their some build. be have as inventory to back of build results. we with seasonality follow-up. you is,

to That well the in half sell-in as been last comment stock year, some end the will second right. your to the along, and remind the but Matteo will normalize. were We in leading let a of towards was absolutely saying all that point, sell-out little light inventory details, I'll the higher half. in be running on Yes. fiscal outs. everyone, just back we've normalize To than that would first you're

second that half. have more in dynamic we positioned reverse and the will sell been than that, So us well holidays, and we in in out for here selling first a that's expect really the the bit completely half,

Samik, would we on quarter I what came add, are really how the in. pleased very

and in balanced we're expecting. actually see with very sell-in and we You sell-through, were line what between can the dynamic

the X year-over-year increase points was maybe demand sales. points X sell-in in -- of So drove the net

the X to the tend pretty narrow themselves And so second things nicely quarter. in

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And Got follow-up, it. my more it. I Got guess Hanneke. it's for for

where gaining areas the outlined you letter, shareholder the in you're share. -- You

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all a in lot those segment an things give well. forward VC, exciting as So of confidence for us highly us, going it's of and profitable

few China. other extremely a from That's on robust. is but remains be would shoots The gaming markets, market also China, there different robust. headline Chinese extremely green many gaming the my market

our ranges remains mid-single the we Gaming Our well demand the Mice. in to at continue strong China. and of very perform grew digits in very quarter, end And our premium brand in

we environment better can competitive the But than there those is results. intense and do

It's our some R&D targeted results. China marketing see time strengthen So to to team to starting in problems take are and and we've because from make but some started are local to investments in the going our we share not China local some encouraging capabilities. yesterday,

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gains there. to TikTok, Douyin share see that's starting So or we're Pinduoduo, and

green while gaming where such committed turn market. and So China market, very a that but shots, shoots. much the that an early take see green to important we're to happens, it's share around so Happy going to to

comes Wang question with Barclays. next George Our from

Just Europe question a the kind of out gaming. the EMEA, tablet from Europe. quick quarter, and stood on Obviously, in growth console especially

And growth kind this you Just couple any click quarters? kind for any out. could of do category especially think pointed double X growth, on of Europe, next -- I particular can curious of areas you sustain other the

happens more online and couple whole market This actually George. The went goes year, the or Great great them outperformed regionally events we delivering a Logi Europe execution. we outperformed team you execution They our events. there importantly, ago. but of the the that flattish, done last there. was customer I inspire market same weeks activation the global. both WORK And themselves, Europe, took them our And that outstanding simply way They've PLAY I Thanks, into just and outstanding if the again, year. questions. execution Yes. is across Fnac, the Logi is for just but the afterwards. board. there European is customers. MediaMarkt mean,

was by you of the the terms categories. in mentioned, way, X in pausing growth, for worth a broad-based In across terms it's of the moment. But probably Europe on really

and much take both headsets, We for actually the changed has the X disclose gross in grow. is the well. completely beyond gaming PC. peripheral. the exact -- those for PC margin those our business because the PC on and tablets team gaming make about better don't X us profile of play So to tablets year, tablets as A to on more think but which points headsets, X segments. And attractive beyond percentage a they numbers, It's are lot on innovation tablets than they to last XX important the percentage us better strategic, of us points thanks

well And are education headsets and first Headsets a lower us, Mice new we've to a that absolutely And also in than larger gaming those gaming, strategic. headsets, some gaming Gaming are suited of for superior. tablets headsets is are and Within also are are keyboards. BXB verticals very segment share technology had gaming -- even foremost. extremely our gaming though both strategic

And that are And market and excited I'm for the gross That these headset again, the us. are AXX, grows space. we for X playing attractive X us, strategic segments very in the just so the completely expands changed AXX gaming console now strongly with margins, our and with those share.

with Our next Bank. Deutsche George question Brown comes from

if I have I X, may.

upcoming on potential your Just you given... tariffs election the firstly, the and in do business the how China U.S., of on think about

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Perhaps George. to we'll back and loop next the move question, on we'll you, to

Morgan of Stanley. Woodring will Our be Erik next question from

year-over-year X year-over-year of full operating XX% of income trends is the you year. demand we growth. of believe if half forecast you second X% like just us maybe to in kind being of just that declines the expected. Maybe year that comments making you're and declines outperformance Nice of start, embedding and alongside something worsening about I better some juxtapose the revenue on help quarters Can than see consecutive Hanneke. bit the of kind a

Just us that to follow-up. sell-through half? super understand second of sell-in And you help helpful. expect could have Just on should kind in maybe why click if the all that, things the dynamics? be Is versus that we would a worse double get I then maybe

operating the income Matteo be in indeed, on you Yes, half that flat. the sales sales, the net math, absolutely. and And do the But that. second dynamic. I'll let side sell-out of the if so is do That about net would sell-in

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a So couple the we Erik, operating XXXX income when XXXX. half dynamics versus half second on of are of there the of compare side, second

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in first we year. side, actually half were work some reserved around later the of last inventory, happened on in around year However, that the previously this selling other year the to -- of able the continue

you challenge, half second That's of this So X of a years. basis right? compare when the XXX margin about reduction the comparison creates points

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half see last the the to about a fundamentally a little XX% goes mentioned is of to that you XX% bit in little which from is earlier. of that year, I But that So XX% the margin elevated down second too. it's gross

this different I If made cohesive that that in is then of China, and approach Are signaling management was seeing in bigger comment the in as step high. mentioned percentage a in very maybe That's to picture kind you of quarter, company? that was quarter. back, in on to I'd whole love change the not XX-year Or OpEx as Okay. together. spend unrelated quarter, just forward? how maybe intensity think if a to marketing? drive to know just we was double-click on for there's maybe in now love growth, a and in one-off from that change looking you of OpEx, forward you the some spend in revenue a follow helpful. we the saw you Are you I up terms spending sales working were of up a quarter, intensity to it would and guys maybe spending but investments just what And the Obviously, we to year-over-year necessarily obviously maybe finally go how I XX% September indicative team September a of

will we'll line so year, in that of No, about important is to for how I and grow so intentional talked range future. into for this we've which that business, XX% our And and the the OpEx we marketing. very OpEx. top R&D the good XX% shifting that's about is full cholesterol, Yes. which sales am always be

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George. Yes,

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with Michael question Vontobel. next comes from Our Foeth

Loop of Capital. Baruah Ananda try Let's

an if genesis -- of some with numbers key key categories could is and not guys to compares I could, the do guess X relative -- the in suggesting of be spending I is the guess some went that's seeing and like eyeballing you for seems first question question Appreciate, segments But paired improving you're question just sort clear. believe that -- just it also the of then the like the I case. perfectly it's the the the commentary, results for environment the the

then that. get have follow-up. just to quick wanted I I on thoughts a And So your

look we're the landscape Yes, saw ahead spend. U.S. sure. to consumer in towards out look terms in they're If last the X.X% that Yes, what great U.S. bit line more our and a see is pretty and that's QX. in just expecting pretty globally. for for in little we're the a QX PWS gaming that's with categories. seeing what the less, in outlook little for that I holiday think came I bit little growth a demand a is probably for -- that's been quarter the with I bit that There resilient. X.X% holidays, not And to categories. positive Retail the global at they were would in but have positive while, our was the markets saying Federation the National say negative in and of the we went holidays, U.S. its

and around So pretty the U.S. consumer in the world. resilient

Matteo sort of you for to guess of actually, back I And the just follow-up as well. Hanneke, actually circling guys, would is -- helpful. be well, both That's

Going we story does that any your the part in about the thinking Any had to lean like calendar have -- of I'm shift 'XX, there you be would think helpful. back conversation, 'XX, really place? think context Can any the from guys the about leverage -- invest of as sort that? is we which differently fiscal

You leverage mean terms in of sheet? balance the

because of cholesterol Sorry, OpEx investment key question there's was increased leaning sort there categories. into been good of the the this part negative some leverage. operating operating the and commentary today growth than leverage. sort I'm about is -- Yes. invest just what's And higher I investment, asking was then quarter think rev of going OpEx

think the line? is got OpEx end the I But that wondering story, high fiscal are income so OpEx through to 'XX any like it of folks the leverage Hanneke change begin be still go story for loud fiscal of also And on you'll and the clear the that 'XX, -- what envelope year does op as 'XX. you part you're of leverage calendar at

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is where think I OpEx are happy we overall. the

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sustain in mentioned invest the and that continue it. and like launched. to help to marketing go-to-market how the We that's continue we us engineering, the you so few and support NPIs We grow, and how NPI, many saw development, a things would sales product and say then I them in video of

continue where operate then lot with cholesterol, a shift We'll and and can marketing. to that first to discipline Yes. sales resources R&D good of and we

the think have Thanks, in queue. Matteo, more question one Ananda. ahead. we I Hanneke, Go

Our last question comes UBS. with from Jörn Iffert

working? now me? you Can hear it Is

right. You're

to X X. Just

is, can one on forward, sell-through going Europe America and APAC, please, this replicate strategy And be first is the season? holiday and by you going why take more question. North into the would them growth? fantastic after to accelerate your not America This and one expect do between the Europe if The growth balanced to one I first okay. it's North you go-to-market APAC to

Sure. in I've Jörn. do we The have lot China. our as Thanks, talked now a about to -- market team better U.S. And Yes. a challenged better. looking little is before, I

executional well of But that of places. And hope the to that be certainly to plays we'll other fantastic future, some Europe and be we the see in work reapply that more start that, a indeed, of that from one So little confident the case. levers could I overall, is the out. would balanced into how

headsets. I'm And tablets is from then growth, which growth, the if think half of the calculating on on correctly a I and follow-up roughly coming Europe here

channels have So new to incredible this growth XX% Is or regions? of you distribution your linked plus.

to linked innovation. It's

innovations us I AXXX touch but gaming to completely the that profile is the remember tablets before, what's when again, gross headsets to segments. said as the it those AXX there combo as margin X comes comes when those new. and it change are helped the And of important So to it well

that's So driver. big one

BXB, driver but doing is education, big other is well, by strong. The helped where looking tablets Europe conferencing in extremely and video also

is are as you And on And the we half, to promotions, into question want or look, not say, take it second something your the EBIT last Or a Circling of account on half? down our want via read returning potentially at you you your second this some you is to cautious or year-over-year. want back to coming to is cautiousness is something midpoint cautiousness the guide for this I if XX% mentioned already invest non-GAAP hard around with guide, are EBIT which be you to seeing non-GAAP promotions the better fact? if today this likely even may. outlook for where up the if

the of the continue the demand or the take which indicated dynamic themselves So will sell-in if as revenue, questions. the the Jörn, what second at the top strong first the Hanneke what a we're and expecting had be range. half. end The half year, the I up confident where the reverse the and would very demand, demand mid obviously, second minute, starting to And then in similar you is say, net in from happening prior the with we in we from some to you we expecting but down, look we flat sits, sell-through, end said, as we what depending the sales to are half consumer to if high in are see for between in is -- of net of what slightly sales,

the good, first that that's but looking weeks for we the year. of of The made couple assumptions the are would I really remainder say,

the activity revenue earlier, nature compared where year. more to would of expect, to consumer as be we I second most will a of the the in just half, little the the being first So fundamentally the second of have indicated bit in the of half the half promotional

the plans know a promotional promote quarter completely would consumer say, it's quarter a Everyone a fairly is And that quarter. you Yes. we quarter, well, than for that does quarter. more well, competitive. little bit less In I especially BXB again, to normal be holiday our holiday the very

plans So spend clear. it's are I but our modest is a there think pretty promotion unexpected Never never, in QX. say that in increase not

right, So not the that I understand are if correctly? it's more you promotions year-over-year quarter-on-quarter, accelerating,

this when think more one though I of is rate year margin of it's you year, overall, half last fair, asked that bit activity. second of a compare little the earlier, as the half -- gross year-over-year, were it's mentioned second I questions versus there promotional to

another sorry We of Michael question have Foeth -- Michael Vontobel. from

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Michael. Yes,

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expanding talking very opportunities I market. Just just left you're about wondering, market. the And your were you one education in and addressable me. successful was for

make you to that or you comments other that end if expand too was any this early opportunity I your is can inroads wondering So markets on make stage? at in

Yes. Thanks probably mostly we and for in enterprise. can play we that where business our on a early. too little play in TAM the the question. It's bigger Again, of work side the is today much than

or work that you the health doubles. than or If education or manufacturing, care places TAM retail people the whether in, all take more that's in other

us, strategic more by So longer-term take a of is it for this but step. we'll step priority

new new go-to-market a point a capabilities, requires into certainly of view. vertical from Going

doing a encouraging is the more this be past And AID, that seeing education little growth we'll we're one in about talk next. quarter. results, maybe again bit might So what We're first. high XXs at super

Thanks, Hanneke, for And last question today. Michael. our that's

Really excellent you I Super. seeing to quarter opportunity to they the just in again Thanks, last Logitech. the forward your you Logitech in everything Nate. with once and say teams around the you care, world interest they us. next for do. Take joining want for Thanks, speaking We take appreciate delivered And growth everyone. quarter. to thank the for everyone, the for to look