English
Français
Deutsch
Italiano
Português
Русский
Español
简体中文
हिन्दी
日本語
Logitech will begin a global hunt for Bracken Darrell’s successor.
Araya Diaz/Getty Images for Logitech
Logitech International
stock tumbled ahead of the open Wednesday after the computer peripherals maker listed on both U.S. and Swiss exchanges, announced that CEO Bracken Darrell is stepping down to “pursue another opportunity.”
The shares (ticker:LOGI) fell more than 10% in premarket trading, while the Swiss-listed shares were also down around 9% in early trading, as the company launched its search for Darrell’s successor. Guy Gecht, a nonexecutive board member, will take on the role of interim CEO in the meantime, the company added in a statement late Tuesday.
Darrell’s resignation is effective immediately but the company said he will remain with
Logitech
over the coming month to help with the transition.
In the latter part of his 10-year tenure, Darrell oversaw Logitech’s pandemic boom as demand for its webcams, keyboards and other equipment surged in lockdowns. But in the post-Covid world, Logitech’s revenue has been declining. The company notched its sixth consecutive quarter of falling sales in its fiscal fourth quarter earnings last month.
The trend is set to continue as Logitech reiterated its outlook for sales to decline between 18% and 22% in the first half of the fiscal year 2024.
The U.S.-listed shares were around 2% up so far in 2023, as of Tuesday’s close and before the announcement. With the stock pointing 10% lower that’s likely to change Wednesday.
Investors typically don’t like an abrupt CEO departure, particularly when it’s someone who has been at the helm for more than a decade, as Darrell has. It also creates uncertainty, given that Logitech is now embarking on a global hunt for a new leader.
Write to Callum Keown at [email protected]
Read the full article here