<div id="readability-page-1"><ul><li>Logitech Eyes Breakout Before Earnings—Citigroup Sees 30% Upside</li></ul><p>Logitech International <span>NASDAQ: LOGI<span></span></span> CEO Hanneke Faber said the company’s long-term growth ambitions remain intact even as third-party research points to a potentially weaker PC shipment environment tied in part to memory costs and shortages. Speaking at a Bernstein event, Faber reiterated Logitech’s goal to be a “high single-digit” top-line growth company over the long term, driven by mid-single-digit growth in its core categories, plus contributions from verticals, adjacencies, and “a little bit of M&amp;A.”</p><div><p><span></span><span>Get <strong>Logitech International</strong> alerts:</span></p></div><h2>Installed base seen as the “big prize” in PCs</h2> <p>Faber emphasized that Logitech’s core peripherals business is tied more to the global installed base of PCs than to annual new unit sales. She cited an estimated 1.5 billion to 1.8 billion PCs in use globally and said attach rates for peripherals remain a significant opportunity, noting that “less than 50%” of those users use a mouse and “less than 30%” use an external keyboard. </p><ul><li>Big Buybacks: 3 Large Caps Exceed 5% Repurchase Power</li></ul><p>Over the past decade, she said Logitech has increased penetration by “close to a percentage point” each year as more users adopt mice and keyboards, helping the company outgrow PC unit sales. Asked about direct exposure to new PC sales, she characterized it as “a very small portion,” arguing that marketing and innovation help drive upgrades and adoption from the installed base regardless of the PC shipment cycle.  </p><h2>How Logitech has outgrown PCs: attach rates, share, and ASP</h2> <p>Faber said Logitech has outgrown PCs by roughly 300 to 500 basis points over the last decade, though not necessarily in a quarter-to-quarter correlation. She attributed the outperformance to three primary drivers: </p><ul>   <li><strong>Higher attach rates:</strong> She said there is “8% more usage of mice and keyboards” versus a decade ago.</li>   <li><strong>Market share gains:</strong> She said Logitech’s share in mice and keyboards rose from about 45% a decade ago to “over 50” today.</li>   <li><strong>Higher ASPs:</strong> She said average selling price is now “50% higher” than a decade ago, driven by “premium innovation” and “premiumizing the lineup.”</li> </ul> <ul><li>Garmin’s Growth Signals Wearables Surge: Stocks to Watch</li></ul><p>On promotions, Faber said Logitech uses them “very strategically” in competitive areas to drive trial, but described promotions as not a major part of the marketing mix compared with premiumization and product mix. </p><p>Regarding competition from PC OEMs that bundle or sell their own peripherals, she said Logitech respects competitors but views peripherals as its core competency. She offered “the left-handed mouse” as an example of niche segmentation that may not be a priority for OEMs but can be meaningful for Logitech.  </p><h2>Business mix: leaning further into B2B</h2> <p>Faber said Logitech’s revenue mix is currently about 40% B2B and 60% B2C, with B2B outgrowing B2C “quarter after quarter.” She said the company’s aim is to move toward a more balanced “50-50” mix over time, describing B2B as a strategic focus while also emphasizing continued commitment to consumer categories. </p><p>She also pointed to synergies across B2B and B2C, including shared technology and brand reach, saying Logitech serves both “15-year-old gamers” and CIOs at “70% of the Fortune 500.”  </p><h2>China gaming turnaround and “China for China” strategy</h2> <p>Faber said Logitech’s gaming business in China has improved materially since she joined a little over two years ago. She described China as the largest and most sophisticated gaming market and said Logitech implemented a “China for China” strategy, building a multifunctional team in Shanghai with engineers, designers, and go-to-market staff. She said the China gaming business has been growing at “20%+” for four consecutive quarters and is helping drive global gaming performance. </p><p>She added that while the strategy started as “China for China,” it is increasingly becoming “China for the world” as localized innovations are exported. As an example, she cited mechanical keyboards that performed well in China and are now being introduced in the U.S. </p><p>Addressing competitive threats from Chinese manufacturers, Faber called the environment “fierce,” citing “more than 500” gaming mouse and keyboard makers in China versus “less than 10” in the rest of the world. She said Logitech had been losing share in China previously but has since stabilized and “in the last quarter” was growing share again.  </p><h2>Supply chain shifts, AI features, and capital allocation</h2> <p>On manufacturing and tariffs, Faber highlighted what she called Logitech’s resilient supply chain, saying the company manufactures in China and “five other countries,” including Mexico. She said Logitech can move production quickly, citing a shift where U.S.-bound products manufactured in China fell from 40% to less than 10% in under a year. She said recent tariff developments were “too early to say” in terms of longer-term impact, adding that a 10% to 15% tariff level for 150 days did not “materially change things” relative to the prior week. </p><p>Faber described AI as a “huge tailwind” when applied to real customer problems. She highlighted AI-enabled features in video conferencing—such as speaker framing and “smart switching” in Rally AI bars—as well as AI-driven two-way noise cancellation in headsets. She said these are not just proofs of concept but products “shipping globally at scale.” She also said Logitech is “deeply integrated” with partners including Microsoft, Google, and Zoom. </p><p>On capital allocation, Faber said Logitech has CHF 1.5 billion in cash and no debt. She listed priorities as investing in organic growth (including R&amp;D and some capex), maintaining an “attractive dividend” with annual increases (noting a CHF 0.10 increase last year and plans to raise it again), pursuing M&amp;A when appropriate, and conducting share buybacks with remaining capital. For M&amp;A, she said the company is looking for adjacencies in gaming, video conferencing, and personal workspace, as well as opportunities to expand in B2B verticals such as healthcare, education, and government, with deals likely to be “tuck-ins.” </p><p>Faber concluded by emphasizing what she sees as investor misconceptions: the company’s balanced mix across B2B and B2C, its three core businesses (gaming, video conferencing, and personal workspace), and its global footprint spanning more than 150 countries.</p><h2>About Logitech International <span>NASDAQ: LOGI<span></span></span></h2><p>Logitech International SA is a Swiss-headquartered company that designs, manufactures and markets a wide range of computer peripherals and accessories for consumers, gamers and business customers. Founded in 1981, the company develops hardware and complementary software that enable people to interact with digital devices across work, home and entertainment settings. Logitech maintains corporate offices in Switzerland and significant operations in the United States and other regions worldwide.  </p><p>The company's product portfolio includes mice, keyboards, webcams, headsets, microphones, speakers, remote controls and other input/output devices, along with specialized lines for gaming, streaming and video collaboration.</p><h2>Featured Articles</h2><ul><li>Five stocks we like better than Logitech International</li><li>3 Signs You May Want to Switch Financial Advisors</li><li>Your name isn't on our protected list yet</li><li>Silver paying 20% dividend. Plus 68% share gains</li><li>~$1.5T SpaceX IPO: Pre-IPO Opportunity</li><li>“Fed Proof” Your Bank Account with THESE 4 Simple Steps</li></ul><p><em>This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.</em></p><h2>Should You Invest $1,000 in Logitech International Right Now?</h2><p>Before you consider Logitech International, you'll want to hear this.</p><p>MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Logitech International wasn't on the list.</p><p>While Logitech International currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.</p><p>View The Five Stocks Here</p>                  </div>

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<p>Logitech International CEO Hanneke Faber reaffirmed the company's long-term growth goal of high single-digit growth despite challenges in the PC shipment market. Faber emphasized that Logitech's core peripherals business is linked to the global installed base of PCs, with significant opportunities for growth in attach rates. The company aims for a balanced revenue mix of 50% B2B and 50% B2C, with B2B currently outpacing B2C. Faber also highlighted the success of Logitech's gaming business in China, which has seen over 20% growth for four consecutive quarters.</p>

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Logitech International CEO Reaffirms High Single-Digit Growth Goal as PC Shipments Face Headwinds