Logitech raises prospects for fiscal year 2021, raises long-term financial model

Strong secular growth trends are expected to continue

Prior to a meeting to be held with financial analysts and investors, Logitech International (SIX: LOGN) (Nasdaq: LOGI) today:

It raised its annual forecast for fiscal year 2021 to sales growth of approximately 63% in constant currency and approximately $ 1.1 billion in non-GAAP operating income. The Company’s previous forecast was between 57 and 60 percent constant currency sales growth and approximately $ 1.05 billion in non-GAAP operating income.

Annual forecast for fiscal year 2022 announced. Constant currency sales growth is expected to be approximately stable, plus or minus 5%, and non-GAAP operating income is expected to range between $ 750 million and $ 800 million. This outlook reflects the Company’s continued investment in marketing, hardware and software innovation and go-to-market capabilities, as well as confidence in its ability to perform after a bumper fiscal 2021 year.

Improvements in its long-term business model announced. Long-term sales growth expectations in constant currency increased from 8 percent to 10 percent, up from single high digits. The non-GAAP gross margin target was increased between 39 and 44 percent from 36 to 40 percent. The non-GAAP operating margin target improved between 14 and 17 percent, up from 11 to 14 percent.

“We are delivering an extremely strong fiscal year,” said Bracken Darrell, Logitech’s president and chief executive officer. “Several years ago, we …