Logitech International S.A. (NASDAQ:LOGI) Q1 2023 Earnings Conference Call July 26, 2022 8:30 AM ET

Company Participants

Nate Melihercik – Investor Relations

Bracken Darrell – President and Chief Executive Officer

Nate Olmstead – Chief Financial Officer

Conference Call Participants

Paul Chung – JPMorgan

Asiya Merchant – Citi

Torsten Sauter – Kepler Cheuvreux

Joern Iffert – UBS

Alex Duval – Goldman Sachs

Erik Woodring – Morgan Stanley

Adam Angelov – Bank of America

Ananda Baruah – Loop Capital

Serge Rotzer – Credit Suisse

Nate Melihercik

Good morning, and good afternoon. Welcome to Logitech’s Video Call to discuss our Financial Results for the First Quarter 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 React of 1995.

We’re making these statements based on our views only as of today and 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 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 are all available at the Investor Relations page of our website. We do encourage you to review these materials carefully. 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 a replay on our website.

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

Bracken Darrell

Thank you, Nate, and thanks all of you for joining us. Logitech like many other companies is experiencing the impact of a wide range of overlapping macroeconomic and geopolitical issues. The war in Ukraine directly reduced our net sales about 2% versus last year, as we talked about earlier. Foreign currency headwinds have increased with the dollar strengthening to nearly one to one in the year now.

Inflation rose further and consumer confidence has weakened. None of these fundamentally affect our optimism for our target markets, our strategy or our business model. But as we looked at the quarter and head into the rest of the year, we believe it’s prudent to take a more conservative view than we had previously.