SCHAFFHAUSEN, Switzerland— Garmin Ltd. (Nasdaq: GRMN) today announced results for the first quarter ended March 31, 2018.
Highlights for the first quarter 2018 include:
- Total revenue of $711 million, growing 11% over the prior year, with outdoor, fitness, aviation, and marine collectively growing 18% over the prior year quarter and contributing 80% of total revenue
- Gross margin improved to 60.0% compared to 58.1% in the prior year quarter
- Operating margin improved to 20.0% compared to 18.2% in the prior year quarter
- Operating income grew 22%
- GAAP and pro forma EPS(1) was $0.68
- Launched the G500H TXi, a new generation of touchscreen flight decks for helicopters
- Began shipping the Forerunner® 645M, our first GPS running watch with integrated music and Garmin Pay contactless payments
- Recently held the second annual Connect IQ™ Summit hosting developers from around the world
Garmin reported more than $113,000 in marine sales for Q1; and more than $144,000 in outdoor sales. FTR has extracted more details about those segments from the full release below:
The marine segment posted revenue growth of 9% driven by our recent Navionics® acquisition. Gross margin increased year-over-year to 59%, while operating margin declined to 12%. During the first quarter of 2018, we introduced the GCV 20 ultra-high definition scanning sonar that delivers higher resolution imaging at greater depths. Additionally, we were selected as the exclusive marine electronics supplier to the Independent Boat Builders, Inc., the industry’s largest purchasing cooperative network of leading boat brands. We remain focused on innovations and achieving market share gains within the inland fishing category.
During the first quarter of 2018, the outdoor segment grew 24% with significant contributions from our fēnix® adventure line of wearables. Gross margin improved to 65% while operating margin remained strong at 30%, resulting in operating income growth of 27%. We introduced the tactix® Charlie, a tactical themed GPS wearable, and began shipping the Descent™ dive watch, bringing an attractive design to underwater adventurers. Looking forward, we remain focused on opportunities in wearables and other product categories within the outdoor market.