Logitech Misses Quarterly Profit Estimates, Reveals Strategy to Offset US Tariffs
- tech360.tv
- Apr 30, 2025
- 2 min read
Logitech International reported weaker-than-expected fourth-quarter earnings on Tuesday and unveiled a plan to reduce its exposure to US tariffs under President Donald Trump's trade policy.
Chief Executive Hanneke Faber said the company would actively address trade barriers, a pressing issue for Logitech, which manufactures most of its products outside the United States.
To mitigate the impact, Logitech plans to cut the share of China-made products shipped to the US from 40% to 10%. The company operates a plant in Suzhou, eastern China, and has been affected by Washington’s 145% duties on Chinese goods.
Logitech began diversifying its production outside China in 2018. Currently, 60% of its products are made through contract manufacturers in Vietnam, Taiwan, Thailand, Malaysia and Mexico.
The company said it would leverage its manufacturing base across six countries. About 65% of its net sales come from outside the US.
Logitech also has a strong presence in Europe, where its keyboards and devices are popular among gamers and remote workers.
For the quarter ended in March, Logitech posted a non-GAAP operating profit of USD 133 million, slightly below analysts’ estimate of USD 134 million.
Quarterly sales were flat at USD 1.01 billion, missing the USD 1.03 billion forecast compiled by Visible Alpha.
The results were not impacted by the April 2 tariff hike but were affected by issues with an e-commerce payment provider and increased spending on research, development and marketing.
Despite the quarterly miss, Logitech met its full-year guidance, reporting sales between USD 4.54 billion and USD 4.57 billion, and non-GAAP operating income between USD 755 million and USD 770 million.
Earlier this month, the company withdrew its 2026 outlook due to ongoing uncertainty from US trade policy.
For the first quarter of fiscal 2026, Logitech expects sales between USD 1.10 billion and USD 1.15 billion, and non-GAAP operating income between USD 155 million and USD 185 million.
Logitech missed Q4 profit and sales estimates
Company plans to reduce China-made US shipments to 10%
60% of production now based in Vietnam, Taiwan, Thailand, Malaysia and Mexico
Source: REUTERS
