> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# Logitech CFO Says 45% Gross Margins Are 'Simply Not Reality' As Freight And Component Costs Climb
- URL: https://www.bullished.co/logitech-cfo-says-45-gross-margins-are-simply-not-reality-as-freight-and-component-costs-627f9571/
- Published: 2026-10-28T06:36:56.000Z
- Updated: 2026-10-28T06:36:56.000Z
- Description: Third-quarter gross margin is guided to 41% to 42%, about 200 basis points lower than a year earlier, as inflation hits freight and chips.
- Author: Matteo Parrino
- Tags: Earnings, LOGI, Industry: Technology

[Logitech](https://www.bullished.co/tag/logi/), which makes keyboards, mice, webcams and gaming gear, is guiding its third-quarter gross margin to [41% to 42%](https://seekingalpha.com/news/4658586-logitech-expects-q3-net-sales-down-5-percent-to-flat-as-supplier-incident-drives-70m-80m?ref=bullished.co), down from 45.2% in the second quarter. On the company's earnings call Tuesday, CFO Matteo Anversa said the 45% level can no longer be expected: "This is simply not reality."

## Where the 200 basis points go

Anversa said the third-quarter margin should fall about 200 basis points from a year earlier. Roughly 150 of that is cost inflation, split about evenly between freight and logistics and component materials. The other roughly 50 comes from slightly higher promotions.

A basis point is one-hundredth of a percentage point. Sequentially, he described a bigger drop from the second quarter: about 150 basis points from holiday promotions and weaker mix, and another roughly 150 from rising costs, including 30 to 40 basis points of premium air freight to speed product to shelves.

He expects inflation to last through the rest of the fiscal year. If it runs past the fourth quarter, he said, Logitech will weigh cost containment and "potential price increases if needed." He also noted the company raised prices in May to offset higher costs.

## A strong quarter behind the warning

The warning follows a second quarter in which net sales rose 2% in constant currency to $1.2 billion, the company's 11th straight quarter of growth. Non-GAAP operating income was [$231 million](https://www.channelnewsasia.com/business/logitech-beats-profit-forecast-sales-gaming-conferencing-products-rise-6497826?ref=bullished.co) and gross margin hit 45.2%, up 140 basis points. Video collaboration grew 12% and gaming 7%, while tablet accessories fell 30% against a large education deal a year earlier.

Despite the near-term pressure, Anversa now expects fiscal 2027 adjusted operating margin at the high end of the long-term 15% to 18% range, even excluding $61 million of tariff refunds from last quarter.

CEO Hanneke Faber said mainstream shoppers will be "cash-strapped" in a K-shaped holiday market, which is why promotions rise modestly. She called the move strategic. She also said Logitech's global share in mice rose 320 basis points in the quarter, against about 50 a year on average over the last decade.

## A supplier accident trims sales

Third-quarter net sales are guided down 5% to flat in constant currency. A semiconductor supplier's accident at the end of June is expected to cost [$70 million](https://www.channelnewsasia.com/business/logitech-beats-profit-forecast-sales-gaming-conferencing-products-rise-6497826?ref=bullished.co) to $80 million in the quarter, well below the up to $200 million Logitech flagged in July, Faber said, thanks to added suppliers and redesigned products.

Third-quarter operating income is guided to $220 million to $255 million. Anversa expects the supply impact to be largely resolved by the fourth quarter.

Faber told analysts she expects the supply impact to be largely gone in the fourth quarter, while Anversa left open price increases if cost inflation lingers beyond it.

### Sources

- [Logitech beats profit forecast as sales of gaming, conferencing products rise - CNA](https://www.channelnewsasia.com/business/logitech-beats-profit-forecast-sales-gaming-conferencing-products-rise-6497826?ref=bullished.co) — channelnewsasia.com
- [Logitech (LOGI) Beats Q2 Earnings and Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/logitech-logi-beats-q2-earnings-212007911.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Logitech expects Q3 net sales down 5% to flat as supplier incident drives $70M-$80M impact (NASDAQ:LOGI) | Seeking Alpha](https://seekingalpha.com/news/4658586-logitech-expects-q3-net-sales-down-5-percent-to-flat-as-supplier-incident-drives-70m-80m?ref=bullished.co) — seekingalpha.com
- [Logitech Stock: Peripherals Maker Tops Fiscal Q2 Views | Investor's Business Daily](https://www.investors.com/news/technology/logitech-stock-fiscal-q2-2027-logi/?ref=bullished.co) — investors.com
- [Logitech slips even as consumers keep buying PC peripherals (LOGI:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4658415-logitech-slips-even-as-consumers-keep-buying-pc-peripherals?ref=bullished.co) — seekingalpha.com

### More on Logitech International

- [Logitech Cuts Supplier-Shutdown Hit To $70 Million-$80 Million, From Up To $200 Million](https://www.bullished.co/logitech-cuts-supplier-shutdown-hit-to-70-million-80-million-from-up-to-200-million-33f4a9be/)
- [Logitech Warns A Chip Supplier's Plant Shutdown Will Cost $70 Million To $80 Million In Third-Quarter Sales](https://www.bullished.co/logitech-warns-a-chip-suppliers-plant-shutdown-will-cost-70-million-to-80-million-in-third-dee3085d/)
- [Logitech Retires Bought-Back Shares, Cutting Share Capital To CHF 39,036,913.25](https://www.bullished.co/logitech-retires-bought-back-shares-cutting-share-capital-to-chf-39-036-913-25-351a4e9f/)

[All Logitech International (LOGI) coverage →](https://www.bullished.co/tag/logi/)