Logitech International (LOGN) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Demand environment and growth

• Demand described as resilient, with high single-digit year-over-year growth, especially in B2B and strong consumer demand in Europe and China.

• B2B segment saw strong performance in North America and Europe; China gaming market experienced double-digit growth.

• Price increases were implemented to offset tariffs, with B2B seeing a 10% increase in the U.S. and minimal demand impact.

• Consumer price increases took longer to implement, with expected short-term volume decline followed by recovery.

• Some B2B demand was pulled forward ahead of tariffs, but not material; no pull-forward seen in B2C.

Tariff mitigation and margin impact

• Diversification efforts reduced U.S. imports from China from 100% in 2018 to 40%, targeting 10% by end of 2025.

• Tariff impact in Q1 was about 50 basis points; Q2 expected impact is 0 to -100 basis points, depending on tariff landscape and product mix.

• Mitigation strategies include agile supply chain management, inventory pull-in, and cost control, especially in G&A.

• R&D and sales/marketing spending remain protected despite cost controls.

Segment performance and innovation

• Video collaboration segment grew double digit, driven by low global video enablement and product innovation like AI-powered conferencing tools.

• Focus on verticals such as healthcare, education, and public sector, with double-digit growth in these areas.

• Gaming segment saw strong growth in APAC, especially China, supported by local initiatives and partnerships.

• Personal workspace peripherals benefit from customer-centric innovation and AI-driven features.