Bolstered by double-digit sales and operating income increases in Q3, Garmin lifted its annual guidance for the second consecutive period. The Swiss navigation and fitness device manufacturer raised its yearly guidance by nearly 3 percent from its July 31 estimate to $6.12 billion. The annual pro forma EPS outlook is now pegged at $6.85 versus $6.00, and the FY’s gross margin is now forecast at 58.5 percent versus 57.0. 

In Q3, ended Sept. 28, the group’s operating income rose 62 percent year-over-year to $437.5 million from $270.4 million on 24.1 percent revenue expansion to nearly $1.59 billion from $1.28 billion. Net income increased by 55 percent to $399.1 million from $257.2 million as gross margin grew by 300 basis points to 60.0 percent from 57.0 percent. 

EMEA paced geographic growth for a second straight period, rising 40 percent year-over-year to $612.7 million. Americas’ sales, meanwhile, increased 24 percent year-over-year to $724.6 million. APAC sales improved by 18 percent to $248.8 million. 

Garmin’s Fitness operating income soared 98.0 percent to $147.8 million on 31 percent year-over-year sales growth to $463.9 million. Segment gross margin improved by 710 basis points to 61.1 percent. During this period, the annual Garmin Health Summit took place to recognize innovative digital health solutions that utilize the brand’s products and to celebrate the 10th anniversary of Garmin Health.

Among the group’s other business segments:

  • The Outdoor segment rose by 21 percent to $526.6 million, mainly due to strength in adventure watches, as the period’s operating income jumped 58 percent to $208.9 million. Gross margin soared 570 basis points year-over-year to 68.1 percent.
  • Marine sales rose 22 percent to $222.2 million from $182.2 million on a 59 percent operating income improvement to $37.8 million. Sales were driven higher by the acquisition of JL Audio. The segment recently announced the acquisition of Lumishore, a marine LED lighting company.
  • Aviation revenues increased by 3.3 percent year-over-year to $204.6 million from $198.2 million. However, the segment’s quarterly operating income slipped by 10 percent to $44.3 million.

Topics