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Logitech International’s Chip Supplier Shutdown Could Cost $200 Million — What Happens Next?

Logitech International S.A. reported its fiscal first-quarter results marked by a 5% net sales increase on a constant currency basis, extending its growth streak to ten consecutive quarters. The company’s performance was underpinned by strong demand in gaming, video collaboration, and pointing devices, driven partly by successful product launches such as the MX Master 4 mouse and the Pro X2 Superstrike gaming mouse, which quickly became top-selling items. Geographic diversity contributed positively, with notable gains in the Americas and China, albeit offset by a 4% sales decline in Europe primarily due to the Middle East conflict impacting that region by approximately 400 basis points. Operating profitability showed improvement despite elevated component costs, shipping expenses, and supply chain challenges. Reported non-GAAP operating income grew 44% year-over-year to $290 million, aided by $61 million in tariff refunds; excluding these refunds, operating income still rose 14% to $229 million.