Logitech beats forecasts after US tariff refund

By John Revill

ZURICH, July 28 (Reuters) - ‌Logitech International reported ​better-than-expected ​quarterly sales and profit on Tuesday, helped by a big refund of tariffs imposed under U.S. President Donald Trump.

The Swiss-U.S. maker of computer ‌mice, keyboards and headsets reported non-GAAP adjusted operating income of $290 million ⁠for the three months to end-June, up 44% from a year earlier and well ahead of ‌analysts' forecast of $209 million.

Results were ‌boosted by a $61 million tariff refund related to products made in China, Vietnam, Malaysia, Mexico, Thailand and Taiwan and shipped to the United States, Logitech's largest ​market.

U.S. companies are seeking to recover up to $166 billion in tariffs after courts found duties imposed by Trump last year were collected illegally and must ⁠be repaid.

Even excluding the refund, Logitech's profit for the first quarter of its fiscal year was 14% higher ​than a year earlier.

Quarterly sales increased 7% to $1.23 billion, ahead of analysts' expectations of $1.20 billion, according to a Visible Alpha consensus.

Logitech said ​it was seeing strong demand for its ‌gaming products, pointing devices and video-conferencing equipment, with momentum expected to continue for the rest of the year.

However, the company warned that ⁠a temporary shutdown at a semiconductor supplier's factory would reduce sales by about $20 million in the second quarter and by up to $200 million in the third quarter.

Logitech did not identify ⁠the supplier or disclose the cause of the disruption. It said the affected component is used ​in only some of its products and it is seeking alternative suppliers. The company expects the issue to be resolved by early 2027.

It also said it still expects a full-year profit ‌margin towards the top end of its 15% to 18% target range as it shifts sales towards unaffected products and ‌higher-margin categories.

As usual, Logitech did not provide full-year guidance. It forecast second-quarter sales of $1.185 billion ⁠to $1.220 billion, representing growth of ‌0% to 3%, including the ​impact of the supplier disruption.

The company expects non-GAAP operating income of $185 million to $210 million in the quarter.

(Reporting by John Revill. Editing by ‌Mark Potter)

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