Automotive OEM connected technology and navigation systems will power next-gen motorcycles and smart scooters OLATHE, Kan., Jan. 8, 2024 /PRNewswire/ -- Garmin (NYSE: GRMN) today announced it will provide state-of-the-art infotainment systems to select Yamaha motorcycles and smart scooters. Featuring Bluetooth® connectivity, media integration and enhanced navigation functionality, the Garmin Automotive OEM solutions will support Yamaha Motor's Connected Vision program that seeks to attain 100% vehicle conn ...

Redesigned smartphone app and website begin rolling out in beta today with a modern, user-friendly design and data insights to help you reach your health and fitness goalsOLATHE, Kan., Jan. 8, 2024 /PRNewswire/ -- Garmin (NYSE: GRMN) today announced extensive updates to its Garmin Connect™ app and website. These updates provide a more simplified and personalized homepage experience by focusing on health and fitness metrics that allow users to track their personal goals. Starting today, select customers usin ...

Designed to fit and built to perform, this first-of-its-kind heart rate monitor clips directly onto sports bras to accurately capture important training metrics OLATHE, Kan., Jan. 8, 2024 /PRNewswire/ -- Garmin (NYSE: GRMN) today announced HRM-Fit™, its newest heart rate monitor created for women. Featuring a clip-on design, it attaches to medium- and high-support sports bras to maximize comfort while accurately capturing real-time heart rate and training data. HRM-Fit is also versatile enough to be used du ...

Essential health, fitness and connected features help you look and feel good—inside and outOLATHE, Kan., Jan. 8, 2024 /PRNewswire/ -- Garmin (NYSE: GRMN) today announced the Lily® 2 series – its next generation of petite and fashionable smartwatches that offer new health, wellness and connected features. Available in two models, Lily 2 and Lily 2 Classic, both feature an elegant, refreshed design with metal watch cases, plus hidden displays with unique patterned lenses and new, fashion-forward color options ...

Report offers key insights into fitness trends from around the world OLATHE, Kan., Jan. 4, 2024 /PRNewswire/ -- Garmin (NYSE: GRMN) today released its 2023 Garmin Fitness Report, highlighting key fitness trends and exercise habits of its customers around the world. From tried-and-true activities like running, cycling and walking to increasingly popular hobbies such as Pilates, HIIT and tennis, users logged more of nearly every activity in Garmin Connect™ in 2023 compared to the previous year.Here are some k ...

United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ For the quarterly period ended September 30, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☐ 1934 For the transition period from to Commission file number 001-41118 GARMIN LTD. (Exact name of Company as specified in its charter) | Switzerland | | 98-0229227 | | --- | --- | --- | | (State or ot ...

Teri Seck - Director of Investor Relations George Wang - Barclays Erik Woodring - Morgan Stanley Teri Seck Clifton Pemble During the quarter, we launched the Forerunner 265 and Forerunner 965 which combine advanced training metrics, recovery insights and everyday health stats with a vibrant sunlight readable AMOLED display that does not sacrifice battery life. I'm very proud of what our aviation team has accomplished and believe there is much more we can achieve in this market. We are pleased with how our a ...

Garmin Ltd. (NYSE:GRMN) Q4 2022 Earnings Conference Call February 22, 2023 10:30 AM ET Company Participants Teri Seck - Director IR Clifton Pemble - President and CEO Doug Boessen - CFO Conference Call Participants Paul Chung - JPMorgan George Wang - Barclays David MacGregor - Longbow Research Benjamin Bollin - Cleveland Research Company Erik Woodring - Morgan Stanley Ivan Feinseth - Tigress Financial Partners Operator Good morning, and thank you for standing by. Welcome to the Garmin Ltd. Fourth Quarte ...

Product Range and Innovation - Garmin offers a wide range of products across various segments, including fitness, outdoor, aviation, and marine, known for their value, high performance, and innovation [21]. - The fitness segment includes products such as the Forerunner series of running watches, which feature wrist-based heart rate monitoring and music storage capabilities [27]. - Garmin's outdoor products include adventure watches like the fēnix and Epix series, which offer features such as solar charging and preloaded topographical maps [30]. - In the aviation sector, Garmin provides integrated flight decks and avionics solutions for various aircraft categories, enhancing situational awareness and safety [32]. - Garmin's marine segment includes a broad range of recreational marine electronics, catering to diverse consumer needs [34]. - Garmin's products are designed to promote healthy and active lifestyles, with features that support fitness tracking and wellness monitoring [26]. - Garmin offers a wide range of marine products, including chartplotters, fishfinders, and autopilot systems, with advanced features such as wireless connectivity and real-time sonar imaging [35]. - The company has a strong emphasis on research and development, with over 1,800 patents issued globally, which supports its product innovation and competitive advantage [56]. Technology and Services - The company utilizes multiple global navigation satellite systems (GNSS) to improve product accuracy and performance, including GPS, GLONASS, and Galileo [22]. - Garmin's Connect IQ platform allows third-party developers to create applications for its devices, enhancing user experience and functionality [27]. - The company emphasizes subscription-based services, such as access to private satellite networks like Iridium, for global data communication [25]. Market Presence and Sales - Garmin's net sales through direct distribution channels accounted for greater than 10% of total net sales in 2022, indicating a significant online and direct retail presence [42]. - Garmin's fitness and outdoor products typically see higher sales in Q4 due to holiday demand, while marine and consumer auto products peak in Q2 [54]. - The company has established key relationships with automobile manufacturers for OEM solutions, providing integrated hardware and software for advanced driver-assistance systems [41]. Sustainability and Environmental Commitment - Garmin's environmental management systems are certified to ISO 14001, demonstrating its commitment to sustainability and compliance with environmental laws [60]. - The company has implemented strategies to reduce greenhouse gas emissions and increase the use of renewable electricity in its operations [61]. Workforce and Talent Management - The company focuses on attracting and retaining talent through career development opportunities and competitive compensation packages [62]. - As of December 31, 2022, Garmin had approximately 19,700 full and part-time employees worldwide, with 6,600 in the Americas, 10,500 in APAC, and 2,600 in EMEA [63]. - The engineering and development staff numbered approximately 5,500, while the manufacturing staff totaled around 8,900 as of December 31, 2022 [63]. - The Company offers a range of generous benefits to attract and retain talent, including stock compensation and employee development programs [65]. - Garmin's strategic aim includes engaging in STEM community outreach programs to encourage local students to pursue engineering careers [66]. Financial Performance and Risks - During fiscal year 2022, Garmin incurred a net foreign currency loss of $11.3 million, primarily due to the strengthening of the U.S. Dollar against several currencies [239]. - The U.S. Dollar strengthened 6.4% against the Australian Dollar and 12.7% against the Japanese Yen, resulting in losses of $8.9 million and $3.7 million, respectively [239]. - A hypothetical 10% adverse change in exchange rates for the Taiwan Dollar, Euro, and other currencies could have resulted in an adverse impact on income before income taxes of approximately $81 million [240]. - Garmin has no outstanding long-term debt as of December 31, 2022, thus no meaningful debt-related interest rate risk [241]. - A hypothetical 100 basis point increase in interest rates could have resulted in declines in portfolio fair market value of approximately $31 million as of December 31, 2022 [243]. - The Company has not recognized an allowance for credit losses on any securities in an unrealized loss position as of December 31, 2022 [242]. Competitive Landscape - Garmin's competitive landscape includes major players like Apple, Amazon, and Fitbit in the fitness sector, and Furuno and Raymarine in the marine products market [44].

Financial Data and Key Metrics Changes - Consolidated third quarter revenue was $1.14 billion, down 4% from the prior year, negatively impacted by approximately $70 million due to the strengthening of the U.S. dollar [8][10] - Gross margin increased to 58.8%, up 40 basis points from the prior year [10][28] - Operating income was $239 million, a decrease of 15% year-over-year, with an operating margin of 21% [10][28] - Full year revenue guidance adjusted to approximately $4.85 billion, a year-over-year decline of 3%, while full year EPS guidance raised to $4.95 [11][35] Business Segment Performance - **Fitness**: Revenue decreased 18% to $280 million, primarily due to lower sales of advanced wellness wearables [13] - **Outdoor**: Revenue increased 5% to $340 million, driven by growth in adventure watches and InReach devices [15] - **Aviation**: Revenue increased 4% to $188 million, with strong demand for aftermarket products [18] - **Marine**: Revenue decreased 5% to $197 million, reflecting seasonal trends [23] - **Auto**: Revenue decreased 2% to $136 million, with declines in consumer product lines [26] Market Data and Key Metrics Changes - The Americas region saw a 2% decline, while the EMEA region was negatively impacted by foreign exchange rates [29] - The APAC region experienced a 10% increase year-over-year, with a 19% increase when excluding foreign exchange impacts [29] Company Strategy and Industry Competition - The company is focusing on new product lines in Aviation, such as Autopilot systems, to gain market share [38] - In Fitness, the company aims to maintain competitive advantages through unique product features, such as extended battery life [46] - The Marine segment continues to innovate, receiving multiple awards for excellence [25] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the operating environment, particularly in light of inflation and supply chain issues [54] - The company is taking a wait-and-see approach for Q4, monitoring retail inventory levels and promotional strategies [52][62] Other Important Information - Free cash flow for the year is estimated at $450 million, with inventory expected to decrease sequentially by around 10% by year-end [49][33] - The effective tax rate for the quarter was reported at 4.3%, down from 5.9% in the prior quarter [34] Q&A Session Summary Question: Aviation segment performance and pricing power - Management highlighted new product lines in Aviation, such as Autopilot systems, contributing to revenue growth and market share [38][40] Question: Fitness segment margins and competition - Management noted improvements in Fitness margins due to product mix and emphasized unique differentiators against competitors like Apple and Google [44][46] Question: Free cash flow and inventory management - Management confirmed that inventory levels are reasonable, with expectations for a decrease by year-end [49][50] Question: Geopolitical risks and manufacturing footprint - Management stated that geopolitical risks are continuously evaluated, with the ability to establish new manufacturing capacity as needed [71] Question: Volume versus pricing impact on growth - Management indicated that balancing volume and pricing is crucial for maximizing profit, with ongoing assessments of product lifecycle [73]