Logitech posts weak quarterly profit

Logitech International on Tuesday outlined plans to mitigate the impact of US President Donald Trump's tariffs policy as the computer mouse and keyboards maker reported fourth-quarter earnings that were slightly below estimates.

Chief executive Hanneke Faber said the company would take an active approach to handling trade barriers, an issue of particular concern for Logitech, which produces most of its products outside the United States, one of its biggest market.

The company will leverage its diversified manufacturing across six countries. It said that roughly 65 per cent of net sales come from outside the US

The plan includes reducing the share of China-made products shipped to the US to 10 per cent from 40 per cent.

Logitech makes products at the company's plant in Suzhou, eastern China, creating a difficult situation after Washington slapped duties of 145 per cent on Beijing.

The Swiss-American company started diversifying its production outside of China in 2018, a situation which Logitech said would help it deal with the current uncertainties.

Apart from the US, Logitech also has a large sales presence in Europe where its keyboards and devices are popular with computer gamers and home workers.

Logitech said its non-GAAP operating profit fell to US$133 million in the quarter ended March, falling short of analysts' estimate of US$134 million.

The company's figures were not affected by Trump's hike in trade tariffs, announced on April 2, but were hit by problems with an e-commerce payment provider and higher investments in research and development, and marketing.

Quarterly sales were flat at US$1.01 billion, below estimates of US$1.03 billion, the consensus of analysts compiled by Visible Alpha.

However, Logitech, which is based in Lausanne and San Jose, California, hit its full-year guidance for sales of US$4.54 billion to US$4.57 billion, and non GAAP operating income of US$755 million to US$770 million.

Earlier this month Logitech withdrew its 2026 outlook, citing continued uncertainty stemming from Trump's trade policy.

Due to Logitech's production in Asia and Mexico, the company is particularly vulnerable to US tariffs.

The remaining 60 per cent of Logitech's sales of computer mice, keyboards, headsets and webcams is produced through contract manufacturers in Vietnam, Taiwan, Thailand, Malaysia and Mexico.

These countries also face hefty tariffs on their exports to United States.

For the first quarter of its 2026 fiscal year, Logitech said it expected sales of US$1.10 billion to US$1.15 billion and non GAAP operating income of US$155 million to US$185 million.