Keystone
Logitech has taken measures to cushion the impact of US tariffs in the first quarter of the 2025/2026 financial year. The company intends to reduce the proportion of products from China for the US market from 40 percent in April to 10 percent by the end of the calendar year.
The diversification of global production is well advanced and should make the company more resilient, explained company managers at the Swiss manufacturer of computer accessories at a video conference on Tuesday evening.
CEO Hanneke Faber said that Logitech had also implemented price increases in North America during the reporting period in order to cushion the impact of higher import costs. According to the company, these measures partially compensated for the negative effects of customs duties, higher advertising pressure and a one-off inventory adjustment from the previous year.
As a result, sales in North and South America fell by 5 percent. Faber also explained the effect with a temporary delivery pause during the adjustments, which led to bottlenecks.
Inventories expanded
Logitech also systematically increased its inventories: At the end of the quarter, they were 9 percent higher than in the previous year in order to ensure security of supply in the face of ongoing customs risks. Although stockpiling had a short-term negative impact on operating cash flow, it is intended to avoid longer-term supply bottlenecks, according to the company.
At the same time, Logitech reduced its operating costs: general administrative expenses were cut by 8 percent and total adjusted operating costs fell by 2 percent. As a result, their share of turnover fell from 26.5 to 24.5 percent.
The company emphasized that it will continue to focus on innovation, cost discipline and rapid adaptation in order to remain successful in the current difficult market environment.
