Garmin reported total sales of 1.14 billion US dollars in the third quarter of 2022. This figure represents a 4% decrease compared to the previous quarter. The rise of the US dollar against other major currencies had a substantial impact. That's around $70 million more than last year. The gross margin is 58.8%, and the operating margin is 21%. The corporation earned $239 million in operating income in the third fiscal quarter. This represents a 15% decrease compared to the prior year's quarter.

"Sales were impacted significantly by the increasing US currency," stated Cliff Pemble, President, and CEO of Garmin. "Despite these strong challenges, gross margin expanded while operating margin remained constant. Looking ahead, we are lowering our revenue guidance for the remainder of the year in light of anticipated events while enhancing our EPS guidance in light of the better margin outlook. We believe our unique product portfolio and vertical integration strategy will allow us to perform while remaining strong in a challenging economic environment."

Compared to last year, fitness sales fell 18% in the third quarter, mainly owing to lower sales in the wearables and indoor bike segments. The gross margin is 53%, and the operating margin is 15%. The operating profit is $41 million. The business introduced the Venu sq 2 series in the third quarter, which, in addition to a razor-sharp AMOLED display, has a battery life that is twice as long as the prior model. The business recently held its sixth annual Garmin Developer Conference, bringing hundreds of developers together to explore how Garmin can support its ideas and innovations.

The Outdoors section saw a 5% increase in sales compared to the same quarter last year. The rise in demand for multisport smartwatches and inReach devices has been mitigated by declines in other product lines. The gross margin is 65%, and the operating margin is 36%. This led to a 121 million US dollar operating profit. During the third quarter, Garmin introduced the inReach Messenger, a versatile new communication device with two-way communication, location sharing, and interactive SOS capability.

Sales in the Aviation business climbed by 4% worldwide in the third quarter compared to Q3 2021, owing primarily to strong aftermarket demand. The gross margin and operating margins are 73 and 26 percent, respectively, resulting in $48 million in operating income.

The marine sector is experiencing a minor fall, with a 5% drop in sales compared to the same quarter last year. The gross margin is 56%, and the operating margin is 23%. The operating profit is $45 million. The newly released LiveScope XR system has a range of up to 150 meters and outstanding image sharpness in both deeper and shallow water, and it gives comprehensive live photos of fish or structures in front of and beneath the boat.

Sales in the automotive industry declined by 2% in the third quarter. The gross profit margin was 40%. Garmin reported a $16 million operating loss in the third quarter due to continuous investments in OEM programs. Garmin released a new model to its famous Drive navigation device series in the third quarter of 2022 with the Drive 55, which aids drivers when traveling and in daily rush hour traffic with its full navigation functions.

The Garmin company is changing its full-year projection based on the first three quarters of 2022 and now expects revenue of roughly $4.85 billion.


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