Logitech Reports 7% Net Sales Increase to $1.34 Billion in Q3 Fiscal 2025

Logitech International S.A. reported a net sales increase of 7% for the third quarter of fiscal year 2025, ending December 31, 2024, reaching $1.34 billion compared to $1.26 billion in the same period last year. For the nine months ending December 31, 2024, sales rose 8% to $3.54 billion from $3.29 billion. The company's gross profit for the quarter was $574.4 million, reflecting a gross margin of 42.9%, an increase from 42.0% in the prior year. However, net income for the quarter decreased to $200.1 million from $244.7 million year-over-year, while net income for the nine-month period increased to $487.5 million from $444.5 million.

The filing highlighted significant changes in operating expenses, which rose to $339.9 million for the quarter, or 25.4% of sales, compared to $304.7 million, or 24.3% of sales, in the previous year. The increase was primarily attributed to higher marketing and selling expenses, which grew by $27.9 million. The company also reported a provision for income taxes of $45.1 million for the quarter, a notable shift from a tax benefit of $9.6 million in the same quarter last year, largely due to changes in income mix across various tax jurisdictions.

Logitech's strategic developments included a focus on product categories such as Gaming and Tablet Accessories, which saw significant sales growth of 14% and 21%, respectively, for the quarter. The company also reported a 3% increase in sales from the Americas region, while the EMEA and Asia Pacific regions experienced growth rates of 9% and 11%, respectively. The company continues to invest in marketing and product innovation, with research and development expenses increasing to $78.0 million for the quarter.

Operationally, Logitech's customer engagement metrics showed a decrease in accounts receivable to $648.2 million from $685.8 million year-over-year, while inventories increased to $483.6 million. The company maintained a strong cash position with $1.50 billion in cash and cash equivalents as of December 31, 2024. Looking ahead, Logitech anticipates continued challenges from macroeconomic conditions, including inflation and currency fluctuations, but remains optimistic about growth opportunities in hybrid work, gaming, and AI integration. The company has also initiated a share repurchase program, allowing for up to $1 billion in share buybacks over three years, with $461.4 million already utilized in the current fiscal year.