Garmin Reports 20% Increase in Net Sales

Garmin Ltd. has recently released its 10-Q report, revealing its financial performance for the 13-week period ended March 30, 2024. The company, based in Schaffhausen, Switzerland, is a leading provider of wireless devices with a focus on GPS navigation. It operates in five segments: fitness, outdoor, aviation, marine, and auto OEM. Garmin's products are sold through various distribution channels, including independent retailers, dealers, distributors, and online webshops.

In the 10-Q report, Garmin reported a 20% increase in net sales, totaling $1.38 billion for the 13-week period ended March 30, 2024, compared to $1.15 billion for the same period in 2023. The fitness segment saw a significant revenue increase of 40%, reaching $342.9 million. The outdoor segment also experienced growth, with a revenue increase of 11% to $366.2 million. The aviation, marine, and auto OEM segments also contributed to the overall revenue growth.

The company's gross profit for the 13-week period ended March 30, 2024, increased by 23% to $802.1 million, compared to $652.8 million for the same period in 2023. The operating income for the period increased by 51% to $298.4 million. The net income for the 13-week period ended March 30, 2024, was $276.0 million, showing an increase of $73.7 million compared to the same period in 2023.

Garmin's liquidity and capital resources remain strong, with approximately $3.3 billion in cash, cash equivalents, and marketable securities as of March 30, 2024. The company's average interest rate return on cash and investments during the first quarter of 2024 was 3.1%, compared to 2.4% during the same period in 2023.

The company's cash flows from operating activities totaled $435.3 million for the first quarter of 2024, compared to $279.2 million for the same period in 2023. Cash used in investing activities increased to $36.9 million, primarily due to net purchases of marketable securities. Cash used in financing activities decreased to $156.2 million, mainly due to lower purchases of treasury shares under the share repurchase plan.

Garmin's lease payment obligations for real estate properties, vehicles, and equipment totaled $155.7 million, with $34.5 million payable within 12 months as of March 30, 2024.

Following these announcements, the company's shares moved 11.6%, and are now trading at a price of $161.27. For the full picture, make sure to review Garmin's 10-Q report.

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