"Fortnite" Fatigue Is Masking Strong Underlying Demand for Logitech's Gaming Products
The widely played battle royale shooter Fortnite took the gaming world by storm in 2018. Accessories maker Logitech International (NASDAQ: LOGI) was a major beneficiary, with its gaming segment experiencing a sales increase of 32% in fiscal 2019 (which ended in March). At 23% of total revenue, gaming was Logitech's largest segment and one of its fastest-growing.
The company's fiscal second-quarter report released on Oct. 21, however, showed top-line growth decelerating to 6% year-over-year on a constant-currency basis. Gaming sales increased by only 2% year-over-year, which is way down from the robust 41% growth rate posted in the year-ago quarter.
Despite the negative trend in gaming sales, it's not as bad as it looks. In fact, management still sees strength in its gaming business. Here's why.
Source Fool.com
