Logitech Slumps as Supplier Crisis Stalls Production

The company anticipates the facility closure could shave up to $200 million off its third-quarter net sales. While Logitech management remains focused on mitigation strategies, they expect the supply chain bottleneck to persist until the fourth quarter. For the current second quarter, the firm projects sales between $1.185 billion and $1.22 billion, a figure already adjusted to include a $20 million headwind directly linked to the semiconductor shortage.

This supply volatility arrives just as Logitech posted strong first-quarter financial results, with net sales climbing to $1.23 billion from $1.15 billion a year ago. Profit reached $235.7 million, or $1.63 per share, comfortably surpassing the $1.26 per share consensus estimate from analysts polled by FactSet. Despite these robust earnings, the market reacted sharply to the supply-side uncertainty, erasing the 11% gains the stock had accumulated throughout the year prior to the announcement.