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Swiss Logitech looking for a second wind

Swiss Logitech looking for a second wind

It was time for her to come out of the shadows. Appointed on 1uh December 2023, at the head of Logitech, one of the world leaders in computer peripherals, the Dutch Hanneke Faber spoke publicly for the first time, Tuesday April 30, on the occasion of the announcement of the annual results of the company. Along the way, she took the opportunity to outline the strategy she intended to implement for the company.

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The Lausanne company, as expected, announced revenues for the delayed fiscal year 2023-2024, ended at the end of March, down 5% compared to the fiscal year 2022-2023, to the tune of 4.3 billion dollars (4 billion euros). A sign of a recovery in activity, revenues started to rise again (+ 5%) in the first quarter.

After the Covid-19 epidemic, which pushed households and businesses to equip themselves with computer equipment, these figures are read internally as a soft landing compared to the pre-pandemic period. In 2019-2020, its revenues were less than $3 billion, then they jumped for two years beyond $5 billion. Logitech forecasts revenue growth of only between 0% and 2% for 2024-2025.

Catalog Bonus

It’s up to Hanneke Faber to restart the machine. His arrival came after his predecessor, the American Bracken Darrell, announced on June 13, 2023, to everyone’s surprise, and through a simple press release published overnight, his resignation with immediate effect. The next day, Logitec shares plunged 12% on the Zurich Stock Exchange. A brief wave of panic which spoke volumes about the esteem held by investors for this leader and the concerns about his succession. And for good reason: from a company on the verge of bankruptcy when he joined it in April 2012, he managed to raise Logitech within the SMI, the stock market index which brings together the twenty main stocks listed in Switzerland.

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Under his leadership, Logitech has above all succeeded in building a premium catalog in a peripherals market which is often similar to basic products. Working on design and ergonomics, the brand can authorize the sale of mice for almost 100 dollars. It has also managed to break into the video game market, with precision products (headsets, mice, keyboards, simulators) aimed at intensive gamers. This division is now responsible for nearly 20% of Logitech’s revenues.

Finally, the company also tried to break into the field of portable speakers, by purchasing Ultimate Ears in 2008. With results which, more than a decade later, remain insufficient.

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Mattie B. Jiménez

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