Information technology Logitech wants to cushion the impact of US tariffs on China
Logitech CEO Hanneke Faber is relatively relaxed with regard to global trade policy. "We are confident even in these uncertain times and we will know how to mitigate the consequences of the US tariffs against China," she said at a video conference.
30.04.2025, 04:53
SDA
Logitech had already withdrawn the targets for the new financial year 2025/26 originally formulated at an investor day in March in April, citing the ongoing uncertainties surrounding the tariffs.
However, a new numerical outlook has now been provided with the annual financial statements, at least for the first quarter of 2025/26. Accordingly, Logitech expects sales in the range of 1.10 to 1.15 billion US dollars in the quarter from April to the end of June, corresponding to sales growth in US dollars of between 1 and 6 percent.
According to Faber, the operating margin is likely to come under some pressure due to the tariffs, but the planned price increases should have a positive effect. "We will have to increase prices in some cases," she said. For some of the products, the price increase could be in double figures, some of the products will remain the same price and for the rest, the truth is likely to be somewhere in between."
"We don't know what the policy will bring and we also don't know how consumer and business confidence will develop," she said.
Broad-based production
However, Logitech has a well-balanced global customer base and has recently invested heavily in a more broadly based production. The Logitech boss also sees further optimization potential in terms of costs.
Logitech has various means at its disposal to mitigate the consequences of the US customs policy, she added. For example, many products had already been transported to the USA in stock before April.
In addition, the proportion of products delivered from China to the USA is not that high. "We generate around 70 percent of our sales globally and around 30 percent in the USA," she explained. Of this 30 percent, around 40 percent recently came from China. And this share could be reduced to 10 percent by the end of the year.
"We can flexibly shift production thanks to our investments in production," says Hanneke Faber. In addition to China, Logitech now has functioning production facilities in five other countries.
She also drew her fundamental confidence from the end of the 2024/25 financial year. "We had very good momentum at the end of the year and we gained market share last year."
