Logitech Quarterly Revenue Surges On Booming COVID-19 Work From Home Demand
Times are tough for a lot of people and businesses, both big and small. However, the sudden surge in people working from home or otherwise being stuck indoors seemingly drove record sales at Logitech, which sells a variety of peripherals and streaming equipment. Logitech ended the year with a bang to record its highest full-year sales figure ever.
The company earned $2.98 billion for its fiscal 2020. That's up 7 percent from 2019. Logitech ended the year strong with $709 million in sales, up 14 percent from the same quarter a year prior. It's not clear exactly how much impact the COVID-19 outbreak may have had on Logitech's bottom line, only that it played it some kind of role. However, the fourth quarter sales uptick is part of a longer trend.
"We have delivered five consecutive years at or near double-digit growth, and Logitech’s products have never been more relevant," said Bracken Darrell, Logitech president and chief executive officer. "Video conferencing, working remotely, creating and streaming content, and gaming are long-term secular trends driving our business. The pandemic hasn’t changed these trends: it has accelerated them."
Case in point, Logitech noted a 34 percent in webcam sales during the fourth quarter, and an 8 percent bump for the full year. In other words, it was already seeing an increase in webcam sales for its fiscal 2020, and as stay-at-home orders permeated the nation, the demand jumped even further in the past few months.
Logitech also noted double-digit growth in its three main biggest categories, those being Creativity & Productivity, Gaming, and Video Collaboration.
Interestingly, Logitech saw mixed performance in its Gaming division. Sales overall grew by 10 percent due to demand for its mice, keyboard, and simulation products, as well as its Streamlabs acquisition. however, this was offset by a decline in gaming headset sales.
Logitech also noted a 27 percent decline in its Smart Home products, which slid 27 percent in the fourth quarter, and 11 percent year-over-year. It's not clear why this happened, though it perhaps is a partial result in increased competition for smart devices.
Looking ahead, Logitech expects to see mid-single digit growth this year.