Following a lackluster performance in the first quarter, Garmin Ltd., posted an overall 9% growth in total sales for the second quarter of 2010.
Sales in the company’s Outdoor/Fitness, Marine and Aviation segments increased by 32%, 23% and 1%, respectively. “The outdoor/fitness segment maintained its strong pace of growth with all categories outdoor, golf, cycling and running contributing to the revenue growth,” said Dr. Min Kao, chairman and CEO of Garmin Ltd.
Revenues increased in all regions, including Europe, Asia and America, up 14%, 37%, and 4%, respectively. In North America, revenues rose to $455 million, up from $436 million in the prior year quarter.
Gross margin was stable at 54.0% of sales, up 290 basis points from the prior year, while operating margin declined slightly on a year-over-year basis to 28% from 30% in second quarter 2009 but improved sequentially from 19% in first quarter of 2010. While diluted earnings per share decreased 17% to 67 cents from 81 cents in the prior year, pro forma diluted earnings per share increased 2% to 85 cents from 83 cents in 2009.
“In the second quarter, we delivered strong results including revenue growth of 9%, unit growth of 8% and pro forma EPS growth of 2% which provides a solid foundation as we enter the back half of 2010,” said Dr. Kao. “Based on our performance in the second quarter, we expect to deliver on our full year guidance for pro forma earnings per share. The growth in our outdoor/fitness and marine segments made a significant contribution to the quarter and we plan to build on that momentum.”
