Social distancing measures resulting from the COVID-19 pandemic have led to people investing in consumer electronics. Logitech, the renowned manufacturer of computer peripherals and software, has now reported a 13.6% rise in quarterly sales.
The Swiss firm said that the demand for its products surged as schools, colleges, and workplaces worldwide transitioned to stay-at-home policies. Demand for webcams and gaming peripherals also surged as people looked towards keeping themselves entertained and in touch with their friends and family. Sales for webcams, in particular, saw an increase of 32%, with strong growth in the Americas and Asia Pacific region.
The accelerated demand contributed to an increase in Logitech"s profits in the fiscal fourth quarter. Concretely, the firm reported that sales rose to $709.2 million from $624.3 million a year earlier. For the full year, the company reported a 6.7% rise in sales. Logitech’s operating income on a non-GAAP accounting basis rose 23.3% to $79 million as well.
CEO Bracken Darrell commented that the COVID-19 pandemic has accelerated the trends of video conferencing, remote working, content creation, and gaming. These long-term secular trends drive Logitech"s business and thus, the Swiss manufacturer"s profits have risen.
Source: Reuters