Garmin, in its seasonally lowest quarter of the FY, reported a 51 percent increase in Q1 operating income to $298.4 million from $197.0 million for the period ended March 30. Net income was up 36 percent year-over-year to nearly $276 million, and gross margin improved by 120 basis points to 58.1 percent. First-quarter revenues increased by 20 percent to $1.38 billion from $1.15 billion, with all geographies posting double-digit gains.
EMEA total sales rose by 30 percent to $463.4 million as Americas’ revenues lifted 20 percent higher year-on-year to $1.38 billion. APAC sales improved by 12 percent to $202.1 million. The group did update its annual forecast that estimates annual revenues of approximately $5.75 million and pro forma EPS (earnings per share) of $5.40.
Key Q1 segment results
- Fitness – Growth across all categories but spearheaded by demand for advanced wearables fueled a huge operating income gain to $68.1 million from $10.6 million. Gross margin improved by a whopping 740 basis points to 56.8 percent as segment sales grew by 40 percent to $342.9 million versus $244.7 million in Q1/2023. During this period, the company published a new report on sleep research initiatives.
- Outdoor – Period operating income increased by 39 percent to nearly $107 million, and year-over-year gross margin improved by 390 basis points to 66.3 percent from 62.4 percent. Revenues rose by 11 percent to $366.2 million. Garmin produced and launched an original docuseries in Q1, which follows two people on their trek through Nepal’s Langtang Circuit and focuses on the power of friendship, perseverance, and the company’s smartwatches.
- Marine – The acquisition of JL Audio contributed to the segment’s 17 percent gain in Q1 sales to $326.7 million. The period operating margin was up 25 percent year-over-year to $87.7 million from $71.9 million. Segment gross margin was 130 basis points from the year-ago quarter at 54.9 percent. The new Panoptix PS70 is Garmin’s first deep-water live sonar.
