Garmin Ltd. has recently released its 10-Q report, providing insights into its financial performance for the 13-week and 26-week periods ended June 28, 2025. The company, based in Schaffhausen, Switzerland, is a leading worldwide provider of wireless devices, including GPS-enabled products and navigation, communications, sensor-based, and information products for the fitness, outdoor, aviation, marine, and auto OEM markets. Garmin sells its products through various channels, including independent retailers, dealers, distributors, and online webshops.
In the 13-week period ended June 28, 2025, Garmin reported a 20% increase in net sales compared to the same period in 2024, totaling $1,814,564,000. The fitness segment accounted for 33% of total net sales, followed by outdoor (27%), aviation (14%), marine (17%), and auto OEM (9%). The company attributed the increase in fitness revenue to strong demand for advanced wearables and the growth in outdoor revenue to sales of adventure watches. The gross profit for the same period increased by 24% to $1,067,012,000, with a consolidated gross margin of 59%.
Operating expenses increased by 14% to $594,717,000, representing 33% of total net sales. However, operating income for the 13-week period surged by 38% to $472,295,000, accounting for 26% of total net sales. The company's net income for the 13-week period ended June 28, 2025, was $400.8 million, reflecting a significant increase from the $300.6 million reported for the same period in 2024.
In the 26-week period ended June 28, 2025, Garmin reported a 16% increase in net sales compared to the same period in 2024, amounting to $3,349,663,000. The company noted strong demand for advanced wearables and growth in adventure watches as key drivers of the revenue increase in the fitness and outdoor segments.
The company's effective tax rate decreased from 17.9% in the second quarter of 2024 to 16.5% in the same period of 2025, primarily due to increased releases of uncertain tax position reserves. As a result, Garmin's net income for the 13-week period ended June 28, 2025, increased to $400.8 million, reflecting a notable improvement from the $300.6 million reported for the same period in 2024.
Garmin also provided insights into the impact of foreign currency fluctuations on its financial performance, noting a $23.5 million currency loss primarily due to the U.S. Dollar weakening against the Taiwan Dollar in the 13-week period ended June 28, 2025. Additionally, the company highlighted the effects of new United States tax legislation enacted on July 4, 2025, which is expected to result in both a decrease in originally anticipated cash outlays for income taxes in 2025 and an increase in the full-year effective tax rate by approximately 100 basis points due to a decrease in U.S. tax deductions and credits. As a result of these announcements, the company's shares have moved 1.24% on the market, and are now trading at a price of $239.30. Check out the company's full 10-Q submission here.
