Positive currency effects of more than $44.5 million helped Garmin report a 2.5 percent increase in Q4 net income to $293.3 million from $286.1 million. Operating income decreased 15 percent to $267.2 million for the period ended Dec. 31, but gross margin improved to 57.0 percent from 55.5 percent. Total revenues declined 6 percent to $1.31 billion from $1.39 billion. For FY22, Garmin suffered a 10 percent drop in net income to $973.6 million as annual operating income fell by 16 percent to $1.03 billion from $1.22 billion. Annual revenues slightly exceeded October guidance, declining by 2.5 percent to $4.86 billion from $4.98 billion.
Regionally, revenues in the EMEA declined by 17 percent to $440.7 million in Q4 and fell by 12 percent for the year to $1.63 billion. Americas’ revenues rose 4 percent in the final period to $648.9 million and gained 3 percent for the FY to nearly $2.43 billion. APAC revenues sunk by 9 percent in the final period to $216.7 million but were 3 percent higher for the FY at $797.6 million.
A closer look at some segments:
- Fitness revenues dropped by 28 percent in Q4 to $336.6 million, with declines in all categories as segment operating profit dropped by 60 percent to $39.8 million. Garmin’s first LTE-connected smartwatch for children, Bounce, was introduced during the period. For FY22, fitness operating income fell by 71 percent to $104.7 million on a 27.7 percent decline in revenues to $1.1 billion.
- Outdoor revenues increased by 2.7 percent to $388.3 million in Q4, primarily due to growth in handhelds and services, but period operating income fell by 5.7 percent to $132.4 million. The unit introduced the second-generation Marq luxury smartwatch collection in Q4. For the FY, segment operating income increased by 16.9 percent to $556.4 million on a 16.6 percent revenue expansion to nearly $1.5 billion.
- Marine segment sales lifted 7 percent higher to $210.6 million in Q4, driven by sonar and chartplotter products. Operating income rose by 5 percent to $42.9 million in the period. For the FY, segment operating income declined by 14 percent to $215.3 million despite a 3.3 percent revenue growth to nearly $904.0 million.
Garmin has forecast a 3 percent total revenue growth in FY23 to approximately $5.0 billion with an approximate operating margin of 20.3 percent and gross margin rate of 57.5 percent for the 12 months.
