FILE PHOTO: A view of the Logitech logo on a building at the EPFL Innovation Park in Ecublens near Lausanne, Switzerland, April 30, 2024. REUTERS/Denis Balibouse/File photo
(Reuters) -Logitech International will buy back $2 billion worth of shares over the next three years, and will increase its current buyback program by $600 million, the computer parts maker said on Wednesday as it confirmed its 2025 outlook.
The company also forecast fiscal year 2026 sales to range from $4.53 billion to $4.71 billion, indicating potential growth in the range of 1% to 3% in U.S. dollars.
The Swiss-American company, which enjoyed a sales surge during the pandemic lockdown, previously said it expected its 2025 sales to grow by 5.4% to 6.4% to reach $4.54 to $4.57 billion.
Logitech raised its full-year forecast in late January, boosted by higher sales and profit for its important pre-holiday quarter.
Logitech announced the figures at its investor day in San Jose, California, where it said that it aims for long-term annual sales growth of 7% to 10%, with a non-GAAP gross margin above 40% and operating margin of 15% to 18%.
"We are market leaders in our core categories with a clear strategy to extend that leadership, a credible plan to enter new verticals and adjacencies, and AI as a force multiplier," said CEO Hanneke Faber.
The company has returned to sales growth after a pandemic-driven boom was followed by a downturn. Logitech now aims to sell its products in areas such as education and healthcare to expand its traditional consumer base among home computer users, gamers and businesses.
Logitech wants to sell more of its products directly to businesses in future. Its recent products include a computer mouse with a prompt builder button which connects the user to artificial intelligence platforms such as ChatGPT.
(Reporting by John Revill and Bipasha Dey; Editing by Varun H K)
