Logitech falls 7% on Q3 sales warning from supplier shutdown

Investing.com-- Logitech International SA (SIX: LOGN) shares tumbled around 7% following its first-quarter earnings report, as the company warned that a supplier factory shutdown could reduce third-quarter sales by up to $200 million.

In late June, the company said that an incident took place at one of its semiconductor suppliers, causing temporarily shut down of the manufacturing facility, potentially affecting the company's ability to meet future demand.

Logitech said it is implementing multiple mitigation measures to minimize the impact. The incident would impact sales by approximately $20 million in the second quarter, with the more significant impact expected in the third quarter, where sales could be reduced by up to $200 million due to the supplier incident.

"A semi supplier shutdown is depressing but otherwise stable demand momentum into the rest of the FY," Barclays analysts said.

The Swiss computer peripherals maker reported adjusted earnings per share for the first quarter that rose 47% and exceeded analyst expectations. The company noted its first-quarter results benefited from $61 million in tariff refunds.

Revenue growth was driven by strong performance across core categories, including double-digit growth in Pointing Devices, according to the company.

"We delivered a strong first quarter against a dynamic backdrop," said Hanneke Faber, Logitech chief executive officer. "Superior innovation and stronger brand marketing drove strong growth across core categories, including double-digit growth in Pointing Devices."

For the second quarter of fiscal year 2027, Logitech projected sales of $1.185 billion to $1.22 billion, compared to the consensus of $1.23 billion. The company expects second-quarter adjusted operating income of $185 million to $210 million, also below the consensus of $216 million.

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