Be it the survival shooter "Fortnite", the open-world blockbuster "Minecraft" or the football simulation "FC 25": Video games inspire the masses. Around 3.3 billion gamers are active worldwide. Logitech is firmly anchored in this huge community with a wide range of accessories. Mice are just as much a part of the Swiss-American technology company's gaming repertoire as keyboards, headsets, racing steering wheels or LCD controllers for aircraft simulation. These items are particularly in demand at Christmas time. It therefore comes as no surprise that Logitech entered the most important business phase of the year in 2024 with 16 new gaming products. Apparently, this offensive has paid off. In the third quarter of the 2025 fiscal period, Logitech recorded sales growth of 14% to USD 467 million in the gaming segment. Not only did this mean that the most important product category stood out from the majority of the rest of the product range - only in the much smaller tablet accessories segment was the growth rate even higher at 21%. The gaming segment also returned to the peak level reached during the pandemic.
At USD 1.34 billion, Group-wide revenue in the quarter under review was 7% higher than in the same period of the previous year. Analysts had expected around USD 90 million less on average. In regional terms, the Asia-Pacific region stood out with a growth rate of 11%. The SMI member's quarterly results were also better than expected. In operational terms, Logitech earned USD 235 million in the three-month period, 6% more than at the end of 2023. The Group improved its gross margin by 90 basis points to 43.2%. Lower product costs paid off here. Meanwhile, higher advertising expenses prevented an even higher margin. "We achieved robust year-on-year sales growth for the fourth quarter in a row and increased the non-GAAP gross margin for the fifth quarter in a row," commented CEO Hanneke Faber on the interim report.
At the same time, the top manager, who has been in charge for almost 14 months, raised the forecast. Logitech now expects sales of between USD 4.54 and USD 4.57 billion for the fiscal year 2025, with operating earnings of USD 755 to USD 770 million. This was the third forecast increase in the current financial period. Faber had originally forecast sales of USD 4.4 billion at best and set the upper end of the earnings target range at USD 715 million. Investors reacted with corresponding enthusiasm to the latest news. Since the presentation of the figures, the SMI share has gained almost 8% in value. There was also applause from analysts: several research houses raised their price targets or the entire rating. Deutsche Bank, for example, now values the Logitech share at CHF 80, up from CHF 60 previously, while the Frankfurt-based bank also raised its rating for the technology stock from "sell" to "hold". Deutsche Bank has thus brought its rating in line with the consensus.
As of March 5, there could be some changes in the opinion about Logitech. This is the date of the company's annual analyst and investor day. Holders of the new Softcallabe Barrier Reverse Convertible can look forward to the event relatively calmly. A largely stable performance is sufficient for this product to yield an attractive return. At 9.40% p.a., the coupon payment is relatively high for a single BRC. This has to do with the fact that the payout is linked to a condition: the coupon is due as soon as Logitech closes above the coupon trigger level on the respective observation date. In the current new issue, the relevant price threshold is a low 69% of the initial level. If the underlying fails at this hurdle, the lost distribution is not necessarily lost. Rather, it can be made up at a later date thanks to a memory effect. The prerequisite here is also that Logitech exceeds the trigger level. The barrier of 69% of the initial fixing is decisive for the redemption of the nominal. As long as the SMI value does not fall to or below this level during the 18-month term, investors receive a repayment of 100%. Otherwise, the partial protection expires and the Softcallable BRC would be linked to the performance of the Logitech share.
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