Garmin, Ltd. posted consolidated revenue of $1.31 billion in the fourth quarter ended December 31, a 6 percent decrease compared to the prior-year quarter. Gross margin expanded to 57.0 percent from 55.5 percent in the prior-year quarter and operating margin was 20.5 percent compared to 22.6 percent in the prior-year quarter. Operating income was $267 million, a 15 percent decrease compared to the prior-year quarter. GAAP EPS was $1.53 a share and pro forma EPS was $1.35 a share.

Fitness
Revenue from the fitness segment decreased 28 percent in the fourth quarter, with declines across all categories. Gross and operating margins were 49 percent and 12 percent, respectively, resulting in $40 million of operating income.

Outdoor
Revenue from the outdoor segment grew 3 percent in the fourth quarter primarily due to growth in handhelds and services. Gross and operating margins were 64 percent and 34 percent, respectively, resulting in $132 million of operating income.

Aviation
Revenue from the aviation segment grew 27 percent in the fourth quarter with contributions from both the aftermarket and OEM categories. Gross and operating margins were 71 percent and 28 percent, respectively, resulting in $63 million of operating income.

Marine
Revenue from the marine segment grew 7 percent in the fourth quarter primarily driven by our sonar and chartplotter products. Gross and operating margins were 54 percent and 20 percent, respectively, resulting in $43 million of operating income.

Auto
Revenue from the auto segment decreased 14 percent during the fourth quarter as declines in our consumer products more than offset the growth in OEM programs. Gross margin was 39 percent, and the company recorded an operating loss of $11 million in the quarter driven by ongoing investments in auto OEM programs.

For the full year, consolidated revenue was $4.86 billion, a 2 percent decrease compared to the prior year and was said to be unfavorably impacted by approximately $228 million due to the year-over-year strengthening of the U.S. Dollar relative to other major currencies

Full-year gross margin was 57.7 percent for 2022, compared to 58.0 percent in the prior-year Operating margin was 21.1 percent for the year, compared to 24.5 percent in the prior year. Operating income came in at $1.03 billion, a 16 percent decrease compared to the prior-year period. GAAP EPS was $5.04 a share and pro forma EPS was $5.13 a share.

Change In Operating Segments
In January 2023, Garmin combined the consumer auto operating segment with the outdoor operating segment. As a result, beginning with reports filed in the first quarter of fiscal 2023, the company’s operating segments will be fitness, outdoor, aviation, marine, and auto OEM. Prior periods will be recast to conform to the revised composition.

Photo courtesy Garmin