v3.25.1
Segment Information and Geographic Data
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Segment Information and Geographic Data

11. Segment Information and Geographic Data

Garmin is organized in the five operating segments of fitness, outdoor, aviation, marine, and auto OEM, which represent the primary markets served by the Company. These operating segments are also the Company's reportable segments.

 

The Company’s Chief Executive Officer, who has been identified as the Company’s Chief Operating Decision Maker (CODM), primarily uses operating income as the measure of profit or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of goods sold and operating expenses. Net sales are directly attributed to each segment. Most costs of goods sold and the majority of operating expenses are also directly attributed to each segment, while certain other costs of goods sold and operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. The accounting policies of the segments are the same as those described in Note 1 - Accounting Policies. There are no inter-segment sales or transfers.

The Company’s segments share many common resources, infrastructures and assets in the normal course of business, and certain assets are therefore not separately tracked by segment. Thus, the Company does not report accounts receivable, inventories, property and equipment, intangible assets, capital expenditures, depreciation expense, or amortization expense by segment to the CODM.

The CODM utilizes operating income to assess segment performance and make strategic decisions about the allocation of operating and capital resources by analyzing future opportunities and recent operating income results, trends, and variances of each segment in relation to forecasts and historical performance.

 

Net sales (“revenue”), cost of goods sold, gross profit, significant segment expenses, and operating income for each of the Company’s five reportable segments are presented below.

 

 

 

Fitness

 

 

Outdoor

 

 

Aviation

 

 

Marine

 

 

Auto OEM

 

 

Total

 

13-Weeks Ended March 29, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

384,722

 

 

$

438,496

 

 

$

223,114

 

 

$

319,438

 

 

$

169,329

 

 

$

1,535,099

 

Cost of goods sold

 

 

164,580

 

 

 

155,960

 

 

 

55,212

 

 

 

135,505

 

 

 

139,297

 

 

 

650,554

 

Gross profit

 

 

220,142

 

 

 

282,536

 

 

 

167,902

 

 

 

183,933

 

 

 

30,032

 

 

 

884,545

 

Research and development expense

 

 

50,457

 

 

 

63,063

 

 

 

84,198

 

 

 

43,986

 

 

 

26,416

 

 

 

268,120

 

Selling, general and administrative expenses

 

 

91,973

 

 

 

90,685

 

 

 

35,348

 

 

 

53,082

 

 

 

12,513

 

 

 

283,601

 

Operating income (loss)

 

 

77,712

 

 

 

128,788

 

 

 

48,356

 

 

 

86,865

 

 

 

(8,897

)

 

 

332,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13-Weeks Ended March 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

342,892

 

 

$

366,193

 

 

$

216,855

 

 

$

326,736

 

 

$

128,973

 

 

$

1,381,649

 

Cost of goods sold

 

 

148,090

 

 

 

123,454

 

 

 

54,229

 

 

 

147,484

 

 

 

106,253

 

 

 

579,510

 

Gross profit

 

 

194,802

 

 

 

242,739

 

 

 

162,626

 

 

 

179,252

 

 

 

22,720

 

 

 

802,139

 

Research and development expense

 

 

43,789

 

 

 

56,671

 

 

 

77,647

 

 

 

39,036

 

 

 

25,392

 

 

 

242,535

 

Selling, general and administrative expenses

 

 

82,880

 

 

 

79,118

 

 

 

32,845

 

 

 

52,524

 

 

 

13,827

 

 

 

261,194

 

Operating income (loss)

 

 

68,133

 

 

 

106,950

 

 

 

52,134

 

 

 

87,692

 

 

 

(16,499

)

 

 

298,410

 

Net sales to external customers by geographic region for the 13-week period ended March 29, 2025 and March 30, 2024 are presented below. Note that Americas includes North America and South America, EMEA includes Europe, the Middle East and Africa, and APAC includes Asia Pacific and Australian Continent.

 

 

 

13-Weeks Ended

 

 

 

March 29, 2025

 

 

March 30, 2024

 

Americas (1)

 

$

745,733

 

 

$

716,116

 

EMEA

 

 

568,953

 

 

 

463,384

 

APAC

 

 

220,413

 

 

 

202,149

 

Net sales to external customers

 

$

1,535,099

 

 

$

1,381,649

 

 

 

 

 

 

 

 

(1) The United States is the only country which constitutes greater than 10% of net sales to external customers.