Logitech reports Q2 EPS 98c, consensus $1.21

Reports Q2 revenue $1.15B, consensus $1.17B. The company states: “We experience seasonal trends related to our product sales. Sales are generally highest during our third fiscal quarter (October to December) primarily due to increased consumer demand during the holiday season and increased spending by enterprises in the months nearing the calendar year-end. Cash flow is correspondingly lower in the first half of our fiscal year as we typically build inventories in advance of our third fiscal quarter and we also pay an annual dividend following our Annual General Meeting typically held in September. Our sales for the three months ended June 30, 2025 increased 5%, compared to the three months ended June 30, 2024, primarily due to an increase in sales of Video Collaboration, Tablet Accessories and Webcams. Our sales for the three months ended June 30, 2025, compared to three months ended June 30, 2024, benefited from improved demand in the Asia Pacific and EMEA regions. Sales for the three months ended June 30, 2025 increased 16% and 12% in the Asia Pacific and EMEA regions, respectively, and decreased 5% in the Americas region, compared to the three months ended June 30, 2024. Gross margin was 41.7% for the three months ended June 30, 2025 and decreased by 110 basis points, compared to the three months ended June 30, 2024, primarily driven by an unfavorable impact from increased tariffs, higher promotional spend and a prior year release in inventory reserves, partially offset by a favorable impact from price increases in North America and product cost reductions. Operating expenses for the three months ended June 30, 2025 were $316.9 million, or 27.6% of sales, compared to $312.8 million, or 28.7% of sales, for the three months ended June 30, 2024.”