Joseph Cardoso's questions to Garmin Ltd (GRMN) leadership • Q2 2025
Question
Joseph Cardoso asked about the drivers of the Fitness segment's outperformance, questioning the influence of channel fill or demand pull-forward. He also inquired about the full-year outlook, specifically why second-half operating profit growth appears muted despite revenue growth, and requested details on the embedded assumptions for tariffs and foreign exchange.
Answer
President and CEO Clifton Pemble stated that channel fill was not a significant factor in the Fitness segment's outperformance and that the company sees no signs of demand pull-forward or channel stockpiling. CFO and Treasurer Douglas Boessen explained the operating expense outlook, citing headcount increases, the MyLabs acquisition, performance-based compensation, and foreign currency impacts as drivers for back-half spending. He also noted that lower tariff estimates are being offset by unfavorable currency impacts from the strengthening Taiwan dollar.