Logitech International S.A. (NASDAQ:LOGI) Q3 2023 Earnings Conference Call January 24, 2023 8:30 AM ET

Company Participants

Nate Melihercik - Investor Relations

Bracken Darrell - President & Chief Executive Officer

Nate Olmstead - Chief Financial Officer

Conference Call Participants

George Brown - Deutsche Bank

Asiya Merchant - Citi

Paul Chung - JPMorgan

Erik Woodring - Morgan Stanley

Adam Angelov - Bank of America

Joern Iffert - UBS

Andreas Müller - ZKB

George Wang - Barclays

Michael Foeth - Vontobel

Nate Melihercik

Okay. Good morning, and good afternoon, everyone. Welcome to Logitech's video call to discuss our Financial Results for the Third Quarter of Fiscal 2023. Joining us today are Bracken Darrell, our President and CEO; and Nate Olmstead, our CFO.

As a reminder, during this call, we will make forward-looking statements, including with respect to future operating results under the Safe Harbor of the Private Securities Litigation Reform Act of 1995. We're making these statements based on our views only as of today. Our actual results could differ materially. We undertake no obligation to update or revise any of these statements.

We will also discuss non-GAAP financial results and you can find a reconciliation between non-GAAP and GAAP results and information about our use of non-GAAP measures and factors that could impact our financial results and forward-looking statements in our press release and in our filings with the SEC, including our most recent Annual Report and subsequent filings.

These materials as well as our prepared remarks and slides and a webcast of this call will all be available at the Investor Relations page of our website. We encourage you to review these materials carefully. And unless otherwise noted, comparisons between periods are year-over-year and in constant currency and sales are net sales. And finally, this call is being recorded and will be available for replay on our website.

And with that, I will now turn the call over to Bracken. Good morning, Bracken.

Bracken Darrell

Good morning, Nate, and thanks, Nate, and thanks to all of you for joining us. As you saw in our preannouncement, our third quarter results were disappointing. Enterprise demand deteriorated versus last quarter, and consumer purchases were soft and more concentrated during promotional weeks than is typical. Those factors compressed our net sales and gross margins and resulted in a revised fiscal year 2023 outlook.

I've discussed for the past few quarters the ongoing macroeconomic and geopolitical challenges impacting Logitech and the world. A strong dollar, global inflation and low consumer confidence continue. In the midst of these, we focused on what we can control: product innovation, a strong go-to-market strategy and disciplined P&L management.