Garmin Ltd. recently announced results for the first quarter ended March 28, 2020.
Highlights for first quarter 2020 include a total revenue of $856 million, a 12% increase, with fitness, marine, outdoor and aviation collectively increasing 17% over the prior year quarter.
Other highlights include: a gross margin of 59.2% compared to 59.0% in the prior year quarter, with operating margin improving to 20.7% compared to 19.8% in the prior year quarter. For Q1, Garmin's operating income of $177 million, increasing 17% over the prior year quarter.
Revenue from the marine segment specifically, grew 22% in the first quarter, which Garmin says was driven by chartplotters and advanced sonars. Gross margin and operating margin were 58% and 25%, respectively, resulting in 58% operating income growth.
"Boating is an active lifestyle pursuit that promotes family time, relaxation, and a sense of freedom," said Cliff Pemble, president and chief executive officer of Garmin Ltd. "Our marine segment is committed to providing leading edge, high quality products and systems with the latest technology that our customers demand as they turn their attention to activities on the water."
In their earnings report, Garmin also announced its withdrawing fiscal 2020 guidance due to economic uncertainty caused by the COVID-19 pandemic.
“The first quarter of 2020 was remarkably strong continuing the momentum from last year,” said Pemble. “The economic uncertainty and impact on consumer behavior caused by the COVID-19 pandemic affects every business, and we are no exception. Accordingly, we are withdrawing our fiscal 2020 guidance. However, we are optimistic for the long term because the markets we serve and the products we offer are well positioned to thrive in the future.”