Garmin announces second quarter results

US electronics company, Garmin, has posted its second quarter results showing a return to consolidated net growth with revenue gains in three of its five operating segments.

According to Garmin’s Q2 2023 results (ending 1 July), consolidated revenue was $1.32 billion, a six per cent increase compared to the prior year quarter.

Gross margin and operating margin were 57.5 per cent, and 21.5 per cent, while operating income was $284 million, a three per cent decrease compared to the prior year quarter.

Garmin reports revenue from the marine segment decreased 11 per cent in the second quarter, primarily due to the timing of promotions, which contributed to the lower revenue from chartplotter products in the quarter. Gross and operating margins were 56 per cent and 21 per cent, respectively, resulting in $46 million of operating income. During the quarter, the company expanded its trolling motor series to a wider range of boats with the Force Kraken.

Cliff Pemble, Garmin president and chief executive officer, states: “We returned to consolidated revenue growth in the second quarter with growth in three of our five segments, demonstrating the resilience of our diversified business model. Our recent wearable launches have been well received and we expect continued revenue growth throughout the remainder of the year.”

Total operating expenses in the second quarter were $475 million, a nine per cent increase over the prior year. Research and development increased 11 per cent primarily due to engineering personnel costs. Selling, general and administrative expenses increased seven per cent driven primarily by personnel-related expenses and information technology costs. Advertising expenses increased seven per cent primarily due to higher media spend.

In June (2023) Garmin launched its new GMR xHD3 series open-array radars which it says ‘combines high-definition imaging with the latest platform technology to deliver new levels of confidence, clarity and performance to cruisers and anglers alike.’

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