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Logitech says company can grow after COVID-19 boom

ZURICH (Reuters) - Logitech International will grow in a post-coronavirus world, Chief Executive Bracken Darrell said on Tuesday, as the rise in home working and playing during the pandemic pushed the computer peripherals maker to its best-ever quarterly results.

FILE PHOTO: Chief Executive Officer Bracken Darrell of the computer peripherals maker Logitech addresses a news conference in Zurich, Switzerland March 6, 2019. REUTERS/Arnd Wiegmann

Booming sales of web cams, covers and keyboards for tablet computers used by schoolchildren and video conferencing devices for online meetings were behind an 85% surge in the Swiss-U.S. company’s sales during the last three months of 2020.

“No doubt the trend of people working from home helped us grow our business,” Darrell told Reuters.

“When the pandemic ends, and starts to fade… you are going to see people working from home and in the office,” he added. “That is an opportunity for us to upgrade spaces in both places, and also to video enable offices.”

The strong third-quarter performance led Logitech to raise its guidance for the third time in its 2021 business year, which runs to the end of March.

The maker of keyboards, mice and headsets expects annual sales to rise by 57% to 60%. It will give a sales outlook for 2022 at its upcoming investor day, which usually takes place in early March.

“I would be surprised if we grew 57% to 60% next year,” said Darrell, who has been Logitech CEO since 2013. “But I will be really clear... long term we have really strong growth potential.

“There are so many video rooms to enable, so many people upgrading their workspaces... gaming is not going to slow down... and we are in the streamers and creators business.”

Darrell said there are 1.7 million podcasters who need cameras, microphones, mice and keyboards, while chefs, make-up artists, and singers are also creating and streaming content.

He said he expects most companies to move to a hybrid model of working in the future, with staff working from home some days and in the office on others.

This increases the potential market size, with people also choosing keyboards and other products for their home office to match their home decor, as well as ergonomics and performance, he added.

Reporting by John Revill; Editing by Dan Grebler

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