It’s no secret that while the coronavirus pandemic knocks out some parts of our industry, it elevates others.
- Q1 sales were $792 million, up 25%.
- Gross margin was 39.2%, higher than expected before the virus.
- Q1 operating profits grew 75% to $117 million, compared to $67 million in the same quarter a year ago.
- Cash flow from operations tripled and reached $119 million, compared to $37 million in the same period a year ago.
- EMEA sales grew 21% (the region has seen double-digit growth in five out of the last six quarters).
“We delivered an exceptional first quarter and are raising our fiscal year outlook,” says Bracken Darrell, Logitech president and chief executive officer.
“We grew sales 25% with strong growth in almost every product category. Our company strategy focuses on four long-term trends: more of us will work from home; video calls will replace audio calls; esports will become as big as conventional sports; and billions of people worldwide will create content, not just a handful of TV and movie studios. Logitech’s business was already positioned to grow from these long-term trends, and since early March they have accelerated, making Logitech more relevant to customers than ever before.”
Logitech now substantially raises its annual sales projections for Fiscal Year 2021 from 5-7% sales growth to 10% to 13% growth. The company also raises its annual outlook for operating profit expectations from $380-$400 million to a range of $410-$425 million.
It’s hard not to be jealous of a company that is in the right place at the right time. To their credit, Logitech is also raising R&D by 16% while partners should benefit from 7% more in sales and marketing this year.
Go Check out the Logitech Slides for Q1