Logitech has recorded a sales figure of $1.27bn for the third quarter of the fiscal year 2023, a 22 per cent drop from the same quarter in 2022.
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The company revealed the figures to investors during its Q3 earnings call on Tuesday, January 24.
The loss in sales has been attributed to the challenging macroeconomic environment in the market, with the threat of recession looming.
Bracken Darrell, Logitech President and Chief Executive Officer, said:
“These quarterly results reflect the current challenging macroeconomic conditions, including currency exchange rates and inflation, as well as lower enterprise and consumer spending.
“With these external headwinds, we continued to aggressively manage our costs in the quarter while at the same time growing market share in key categories.
"Our long-term strategies remain unchanged, and we remain committed to the growth trends that fuel our business."
Video Collaboration
Logitech saw a decline in sales across all its product categories during Q3, with video collaboration sales dropping by 21 per cent.
The company saw its sales of conference cam units decline year-over-year; however, it did see a rise in the average selling price (ASPs) per room kit.
Darrell stated: "The mix of our conference room sales is skewing to higher-end cameras.
"And the attach rate of accessories and services to our conference room cam sales is growing, which drives our sales revenue per room higher, evidence that our strategy of developing integrated room systems is working."
Video collaboration accounted for the most significant negative swing in Logitech's portfolio compared to Q2 FY 2023 after the category had previously consecutive quarters of growth.
Logitech put the decline in sales across all its product lines down to consumer purchasing was concentrated on promotional weeks throughout the quarter, combined with lower overall spending from consumers and enterprises.
A Change in Outlook
Darrell branded the Q3 results as "disappointing" and reaffirmed the adjustment to the company's outlook for 2023.
Earlier this month, Logitech adjusted the FY 2023 outlook to between negative 15 per cent and negative 13 per cent sales growth.
When speaking to investors on the call, Darrell commented: "Enterprise demand deteriorated versus last quarter, and consumer purchases were soft and more concentrated during promotional weeks than is typical.
