UPDATE 1-Logitech quarterly profit drops 38% as pandemic demand declines

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July 26 (Reuters) – Logitech International reported a 38% drop in first-quarter adjusted profit and cut its full-year 2023 outlook on Tuesday as the maker of webcams, speakers and computer mice computer was struggling to cope with tough comparisons from a year earlier.

The Swiss-American company reported sales of $1.16 billion for the three months ended June, down 9% at constant exchange rates. Non-GAAP operating income fell 38% to $146 million.

Last year, the company’s sales rose 66% and operating profit doubled as demand for computers and peripherals soared during the COVID-19 shutdowns as stay-at-homemakers are geared towards hybrid work.

The company on Tuesday approved an increase in share buyback authorization to $1.5 billion from the current $1 billion.

“This quarter, we demonstrated our operational focus in the face of challenging conditions and through exceptional growth over the past two years,” Chief Executive Bracken Darrell said in a statement.

The company also cut its full-year outlook to a decline in sales of between 8% and 4% in constant currency and between $650 million and $750 million in non-GAAP operating profit, citing tough conditions.

It had previously forecast annual sales growth of 2% to 4% at constant currencies and non-GAAP operating profit of $875 million to $925 million.

Logitech has benefited from the pandemic as staff working from home have upgraded their keyboards, mice and video conferencing equipment. Businesses have also upgraded their equipment as people return to the office.

Earlier this year, the company cut its full-year outlook, citing lost sales in Ukraine and Russia after shutting down operations in the two countries.

(Reporting by John Revill in Zurich and Akanksha Khushi in Bangalore; Editing by Sherry Jacob-Phillips)