Logitech CEO says sales growth will be 'gradual' due to external headwinds
- Logitech CEO Hanneke Faber discussed the company's most recent quarterly report with CNBC's Jim Cramer, describing headwinds that may impede sales.
- These headwinds include smaller IT budgets and high office vacancies.
Logitech CEO Hanneke Faber discussed the company's most recent quarterly report with CNBC's Jim Cramer, describing external headwinds that may hinder top line sales growth.
"What we wanted to do ... in our reporting today is make sure that we're a little cautious," Faber said. "Because while there's a lot of stuff that Logitech's got going for it, we do think the recovery to growing top line sales will be gradual, and that's because there's so much happening in the external environment."
Logitech's Monday evening report showed higher-than-expected sales and an increased full year outlook. However, while the company's rate of net sales declines has been improving, management indicated they don't see "an inflection point," in that area over the next fiscal year. Logitech stock was down 11.54% by Tuesday's close.
Some of these headwinds include uneven GDP growth, "stickier" inflation than the company would like, and corporate IT budgets being smaller than they once were, Faber said. She added that office vacancies in the U.S. just hit an all-time high, and empty office buildings mean fewer Logitech products sold.
But Faber said gaming is a big part of Logitech's business longer term, saying the "macros" in the sector were strong. She highlighted the company's driving simulation products as well are its premium gaming mouse.
"There's just a lot of things happening in the market, that's why we're a little cautious," Faber said. "But growth is a matter of when, not if, for Logitech."
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