Switzerland-based Logitech did better than expected in Q1 and raised its outlook for sales and operating income.
Q1 sales were $480m, up 7% compared to Q1 of the prior year. Q1 retail sales grew 13% in constant currency, the highest quarterly growth in over five years. Q1 GAAP operating income almost doubled at $26m compared to $14m a year ago.
“Our strategy is working, delivering 13% retail sales growth this quarter – our best in over five years,” said Bracken Darrell, Logitech president and chief executive officer. “Our growth was better-than-expected and broad-based across regions and product categories. Virtually all our sales were in growing product categories and we grew in all our market opportunities – Creativity & Productivity, Gaming, Video Collaboration, Music, and Home – most in double digits. It’s a great start to the new year and gives us the confidence to raise our outlook.”
Logitech raised its FY 2017 outlook to 8 to 10 percent retail sales growth in constant currency, up from its previous forecast of growth in the mid-single digits. The Company also increased its non-GAAP operating income outlook for FY 2017 to between $195m and $205m, up from $185m to $200m.