Garmin grows well, expects to continue to achieve high revenue

SGGPO October 25, 2023 19:21

Garmin has just announced its second quarter 2023 business results with sales growth, showing consolidated revenue of 1.32 billion USD, up 6% year-on-year...

Garmin is expanding its product portfolio across multiple segments. For example, the sports segment saw revenue increase by 23% in Q2, driven by increased demand for premium wearables. Gross margins and operating margins were 52% and 16%, respectively, with operating profits reaching $54 million.

In Q2, Garmin launched the Edge 540 and Edge 840 series, these advanced, compact cycling computers provide in-depth performance information, advanced navigation, and solar charging to help users train more effectively.

Notably, the Garmin MARQ 2 Carbon Edition has just been launched. Accordingly, Garmin has released a trio of new MARQ 2 smartwatches, part of the MARQ Carbon collection. This smartwatch has a unique fused carbon fiber structure and is described as "a completely new modern watch".

According to Notebookcheck, the carbon structure consists of 130 layers of carbon fiber, each layer rotated by Garmin during production to maintain the durability of the case…

Garmin's new smartwatch has a 46mm face size, is equipped with a 1.2-inch AMOLED screen, 390 x 390 pixel resolution, and is rated to have a battery life of up to 6 days in smartwatch mode or 21 days when battery saving mode is turned on.

The MARQ Carbon collection starts at $2,950 for the Athlete Edition. The Golfer and Commander Editions are priced at $3,100 and $3,200, respectively.

Previously, Garmin MARQ 2 was launched and sold in Vietnam and with the needs from the Vietnamese market, Garmin Vietnam will soon introduce and sell Garmin MARQ 2 Carbon, meeting the needs of consumers.

Although revenue from the outdoor segment fell 3% in the second quarter, the growth of the expedition watch line more than offset the decline in the remaining product lines. Gross profit margin and operating profit margin were 63% and 31%, respectively, helping to bring operating profit to $138 million.

This quarter, Garmin launched the fēnix 7 Pro, which features a built-in LED flashlight and advanced navigation capabilities… and the Epix Pro series, which comes in three sizes with a sharp AMOLED display and an integrated LED flashlight. Alongside that, the premium Approach S70 smartwatch, which comes in two sizes with a vibrant AMOLED display and advanced golf analytics.

Garmin also holds market share in the aviation and marine product segment. Revenue from the aviation product segment increased 6% in the second quarter with growth coming from the OEM product portfolio. Gross profit margin and operating profit margin were 74% and 29%, respectively, with operating profit reaching $63 million.

Garmin has introduced its groundbreaking Garmin Autoland and Autothrottle systems, which are currently awaiting certification for retrofit installation on select Beechcraft King Air aircraft. This certification marks the Autoland system as Garmin’s first retrofit product for twin-engine aircraft. In the automotive OEM segment, automotive OEM revenue increased by 77% in the second quarter due to increased deliveries of control system products.

Garmin Ltd is adjusting its full-year guidance based on its first-half 2023 results. Garmin now expects revenue of approximately $5.05 million, earnings per share of $5.15 based on a 57.2% gross margin and a 20% operating margin, and an 8.5% effective tax rate for the full year...

“We returned to consolidated revenue growth in the second quarter with growth in three of our five operating segments, demonstrating the resilience of our diversified business model,” said Cliff Pemble, president and CEO of Garmin Ltd. “Our recent wearables launches have been well received by consumers, and we expect revenue growth to continue for the remainder of the year.”

Source: https://www.sggp.org.vn/garmin-tang-truong-tot-ky-vong-tiep-tuc-dat-doanh-thu-cao-post711312.html