Joern Iffert: But just maybe to name one or two products that did in particular well or regions.
Chuck Boynton: Gaming, crushed it in Europe, had a phenomenal quarter. Mice, keyboards did well. Video is up. I mean, it’s really across the board. And what’s amazing, in US dollars, it’s up 5% year-over-year, while the whole business is down 9%. I mean – so Europe did incredibly well. In constant currency, it was down 2%. So, and that’s maybe the more relevant metrics. So, I’d call it flat-ish to slightly down. But Europe had a really good quarter, and now we’ll just have to see how the December quarter holds in there because it’s our single biggest quarter in Europe. So, hopefully, it’s a read through that Q3 will look just like Q2 did, but it’s kind of a wait and see. But we feel great about the progress and the execution.
Joern Iffert: Thank you very much.
Nate Melihercik: And our final question today is from Andreas Müller at ZKB.
Andreas Müller: Yes. Hello. Thanks for taking my questions. Well done for the quarter. Congratulations. Can you be a bit more explicit on promotions for the December quarter? What were the learnings from last year’s promotion? And in the gross margining guidance, it seems implied that the promotions are far more broadly broad-based. Is that right? Can you elaborate here a bit?
Chuck Boynton: Certainly. Last year, I think the promos came in more than we’d expected. This year, we’ve allocated budgets to the team, and we expect promo to be less than last year, but the mix will be a little negative because it’s going to be more consumer, a little less enterprise. And so, the mix shift will be a bit of a headwind overall as we see gross margins for the quarter. So, I think it’ll be less promo, but it’s still our peak promo period. But the mix shift is going to be more to the consumer-led items.
Andreas Müller: Okay. And then in VC, what has been the market adoption of the new site product? Was that already a driver in the quarter or do we see here something?
Chuck Boynton: Early days, single digit millions of orders. We’re still not at the full-scale launch of site yet. That’ll likely happen this quarter or next, knock-on wood this quarter. But it’s still very, very early, early days. But the reception so far has been strong. Guy’s been with a lot of customers.
Guy Gecht: Yes. I have to say, I don’t think I met a customer that didn’t like it and wanted to use it. Normally, in an enterprise, the IT want to test the solution, a new type of solution before they deploy it, and then they have few rooms and then they have conclusion, and then they come to us. So, this take a little longer for people to deploy it, but feedback is tremendous. It’s a gamechanger as far as being able from a remote location to come in and feel part of the room, not just the video, also the audio. And so, we feel really good about that. There’s a lineup behind that. Obviously, it’s not the last product that we’ll have multiple cameras. That’s big part of our roadmap. We feel really good about the initial response.
Andreas Müller: Okay, thanks. And my last question, what is, in your opinion, a perfect time horizon for year-on-year growth overall? Obviously, it’s beyond March 2024, but can you give some color when that could happen and say yes, with the most likelihood?
Chuck Boynton: I think with the rate of change that we’re seeing, it’s mid to end of next year would be my – the current thinking based on the slope and rate of change.
Andreas Müller: Okay. Thanks. Thank you very much.
Chuck Boynton: Thanks, Andreas. And Guy, that’s our last question for today.
Guy Gecht: So, thank you Nate. And thank you all for joining us today. I want to really extend my sincere thank you to the Logitech team. The fruit of their dedication and execution, I think we’re seeing in the numbers and give us a lot of confidence for the future. So, thank you, Logitech, and thank you all for joining us today. Looking forward for talking to you in the future.
