There have been a select few companies that have managed to not only survive the effects of the global pandemic on the economy but actually flourish. One of the stand out companies have without doubt been Logitech. As people began adjusting to working at home, so too did they realise that they would need new equipment to do their work. As Logitech is a company that sells everything from mice, keyboards, headsets and all other manner of PC accessories, it is no surprise that the company has done so well during this difficult time.
Logitech reported on Sept 30, 2020 that their second quarter results had surpassed $1bn making it the first time in the company’s history to do so. Logitech saw a 73% growth during Q2 and finished the quarter with a total of $1.26 billion non-GAAP sales and earnings per share of $1.87. While the initial wave of sales was expected due to people setting up home offices, it would appear that the wave is still going strong with sales continuing to soar.
The real sign of exponential growth is shown when Logitech’s Q2 from last year is compared to this year. The non-GAAP operating income has increased by 295% to $354 million in comparison to last year’s operating income of $89 million. Where the GAAp operating income has increased by 372%, at $322 million. A quite staggering increase from last year’s performance by Logitech and makes the impact of COVID-19 all the more clear to see.
With such an increase in product sales it was only natural that there would be a shortage of supply from Logitech. To break it down, Logitech had a 26% sales increase in mice and trackball equipment. Keyboards and other combination kits saw a massive 44% increase in sales. The real sales winners here though, were webcams. The rapid growth of Zoom conferences and calls, coupled with Skype saw Logitech webcams hit a 258% surge in sales taking their overall sales to $102 million. With such a surge in demand, Logitech have been pushing to increase their supply of tech and equipment.
One indicator that shows the growing value of Logitech is the company’s sales growth estimates for 2021. Logitech have raised their outlook to between 35% – 40% in constant currencies. A stark contrast to the original outlook of 10%-13%. With an increased sales outlook comes an increased outlook for Logitech’s non-GAAP operating income for 2021. TWhere their initial projections were between $410 million and $425 million, they now feel that $700 million and $725 million is a more accurate prediction.
It really has been a staggering rise for Logitech during Q2 and the global pandemic as the company’s fortunes seemingly have no end in sight. Even after the pandemic starts to dissipate, more and more people are working from home in an ever changing global working environment.
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