Logitech 2014 Annual Report Download - page 190

Retail units sold increased 2% and our overall retail average selling price decreased 2% in the three months
ended June 30, 2011 compared with the three months ended June 30, 2010. Sales of our retail products priced above
$100 represented approximately 15% of our total retail sales in both the three months ended June 30, 2011 and 2010.
Products priced below $40 represented approximately 57% of retail sales in the fiscal quarter ended June 30, 2011
compared with 61% in the fiscal quarter ended June 30, 2010. If foreign currency exchange rates had been the same
in three months ended June 30, 2011 and 2010, our constant dollar retail sales decrease would have been 5%.
Units sold to OEM customers declined 22% during the fiscal quarter ended June 30, 2011 compared with the
same period in the prior fiscal year, primarily due to decreased sales of our OEM mice and microphones for console
singing games. Sales of our OEM mice decreased 12% and units sold decreased 19% during the quarter compared
with the same period in the prior fiscal year. Microphone sales decreased by 91% in the three months ended June 30,
2011 compared with the three months ended June 30, 2010. Sales of OEM keyboards and desktops increased 17%
in dollars during the quarter compared with the prior year, with unit sales essentially flat between the two periods.
LifeSize net sales represent sales of video conferencing units and related software and services. Sales of our
LifeSize products increased 34% in the three months ended June 30, 2011 compared with the three months ended
June 30, 2010. Foreign currency exchange rates did not affect LifeSize sales.
Retail Sales by Region
The following table presents the change in retail sales by region for the three months ended June 30, 2011
compared with the three months ended June 30, 2010.
Three months ended
June 30, 2011
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14)%
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1%
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29%
Retail sales in the EMEA region declined due to weak consumer demand for our products across much
of Western Europe, most notably in the mature markets of Southern Europe such as Italy and Spain, where the
economic environment was particularly challenging. The largest retail sales declines in EMEA occurred in the
audio, digital home and pointing devices product families. Our constant dollar retail sales decrease in the EMEA
region would have been 23%, if foreign currency exchange rates had been the same in the three months ended
June 30, 2011 and 2010. Retail units sold during the three months ended June 30, 2011 decreased 13% compared
with the prior year, in line with the sales dollar decrease. Despite the weak demand, the overall level of inventory
carried by our channel partners declined by 22% from March 31, 2011 to June 30, 2011. We believe we have largely
stabilized the EMEA-specific pricing and channel management programs which created the execution issues
that negatively impacted our profitability in the fourth quarter of fiscal year 2011. However, we believe that full
implementation of the necessary operational changes will continue through the remainder of fiscal year 2012 which
has resulted in a reduction of our expectation for EMEA sales in fiscal year 2012. During the three months ended
June 30, 2011, we did achieve strong growth in EMEA’s emerging markets, particularly Russia, and sell-through
in Germany, our largest market in EMEA, improved in the three months ended June 30, 2011 compared with the
three months ended March 31, 2011.
In Americas region, retail sales increased 1% and retail units sold were flat in the three months ended June 30,
2011 compared with the same period in the prior fiscal year, primarily due to a 36% sales decline in the digital home
product family, which was more than offset by increased sales of keyboards and desktops, pointing devices, and
gaming products. In the digital home category, sales of remote controls in first quarter of fiscal year 2011 included
the launch of several new remotes, including the Harmony 300 and the Harmony 650, whereas the same period
in fiscal year 2012 did not include any remote control product launches. In addition, one of our Americas region
customers placed a sizable order for remotes in the three months ended March 31, 2011, to support a promotion
campaign, which negatively impacted sales in the three months ended June 30, 2011. The digital home category also
includes Logitech Revue and related peripherals, which had slightly negative sales in the quarter, as returns of the
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