Revenue from Fitness grew by 23% Y/Y to $334.9 million, Outdoor declined by 3% Y/Y to $448.1 million, Aviation improved by 6% Y/Y to $217.5 million, Marine decreased by 11% Y/Y to $215.8 million, and Auto OEM grew 77% Y/Y to $104.6 million.

The gross margin declined by 120 bps to 57.5%. The operating margin contracted 210 bps to 21.5% as expenses increased 5% Y/Y.

Garmin generated $221 million in free cash flow. It held $2.8 billion in cash and equivalents.

"We returned to consolidated revenue growth in the second quarter with growth in three of our five segments, demonstrating the resilience of our diversified business model. Our recent wearable launches have been well received and we expect continued revenue growth throughout the remainder of the year," said Cliff Pemble, president and chief executive officer of Garmin.

Outlook: Garmin increased its FY23 revenue outlook to $5.05 billion (prior $5.00 billion), in line with the consensus.

Garmin reiterated proforma EPS of $5.15, below the consensus of $5.24.

 Price Action: GRMN shares closed higher by 0.43% at $106.35 on Tuesday.

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