SCHAFFHAUSEN, Switzerland–Garmin Ltd. (Nasdaq: GRMN) today announced results for the fiscal-year ended December 31, 2016.
Highlights for the fourth quarter 2016 include:
- Total revenue of $861 million, growing 10% over the prior year, with outdoor, fitness, marine and aviation collectively growing 25% over the prior year quarter and contributing 74% of total revenue
- Gross margin improved to 54.7% compared to 52.9% in the prior year quarter
- Operating margin of 18.6% compared to 18.7% in the prior year quarter
- Operating income growth of 10%
- GAAP EPS was $0.72 and pro forma EPS(1) of $0.73 for fourth quarter 2016
- Introduced the fēnix® 5 with three watch designs that are expected to appeal to a broader range of wrist sizes and style preferences
Highlights for the fiscal year 2016 include:
- Total revenue of $3,019 million growing 7% over the prior year, with outdoor, fitness, marine and aviation collectively growing 21% over the prior year and contributing 71% of total revenue
- Gross and operating margins of 55.6% and 20.7%, respectively, both improving from 2015 levels
- GAAP EPS was $2.70, a 13% improvement over the prior year, and pro forma
- EPS(1) was $2.83, a 14% improvement over the prior year
- Shipped approximately 16.8 million units, up 4% from the prior year and over 173 million since inception
- Connect IQ app store establishes itself with over 2,500 apps and over 24 million downloads since inception
“2016 was a remarkable year of growth driven by strong sales in our outdoor, fitness, marine, and aviation segments,” said Cliff Pemble, president and Chief Executive Officer of Garmin Ltd. “Entering 2017, we see additional growth opportunities ahead and we are well positioned to seize these opportunities with a strong lineup of great products.”
The marine segment posted strong fourth quarter revenue growth of 19% driven by our solid lineup of chart plotters and fish finders. Gross margin decreased year-over-year to 52% due to product mix, while operating margin improved to 4%. In the quarter, we introduced new touchscreen and keyed chartplotter combo offerings in our popular GPSMAP® product line, many with built-in sonar, and new radar and entertainment offerings. We expect marine to continue to be a growth segment in 2017 as we focus on market share gains and new product innovations.
View the full breakdown with numbers here.