PHOTO COURTESY GARMINGarmin posted consolidated revenue of $1.15 billion in the first quarter of fiscal 2023, a 2% decrease compared with the year-ago quarter. Gross margin increased to 56.9%, and operating margin was 17.2%. Operating income was $197 million, a 14% decrease compared with 2022.
“2023 is off to a good start, with four of our five segments posting double-digit revenue growth driven by new-product introductions and solid demand trends,” president and CEO Cliff Pemble said in a statement. “We are excited about what lies ahead, as we anticipate many more product introductions throughout the remainder of the year.”
Marine segment revenues increased 10% in the quarter, primarily due to the timing of spring promotions, according to Garmin. Gross and operating margins were 54% and 27%, respectively, resulting in $72 million of operating income.
Total operating expenses for the quarter were $456 million, a 5% increase over the prior year. Garmin said it generated approximately $232 million of free cash flow. The company ended the quarter with cash and marketable securities of approximately $2.7 billion. Garmin is maintaining its 2023 guidance calling for revenue of about $5 billion and pro forma EPS of $5.15.
