台灣國際航電 (GRMN) 2022 Q2 法說會逐字稿

Thank you for standing by, and welcome to the Garmin Limited Second Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, today's program may be recorded. And now I'd like to introduce your host for today's program, Teri Seck, Director of Investor Relations. Please go ahead.

感謝您的支持，歡迎參加 Garmin Limited 2022 年第二季度收益電話會議。 （操作員說明）提醒一下，今天的節目可能會被錄製。現在我想介紹一下今天節目的主持人，投資者關係總監 Teri Seck。請繼續。

Good morning. We would like to welcome you to Garmin Ltd.'s Second Quarter 2022 Earnings Call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcript will also be available on our website.

早上好。歡迎您參加 Garmin Ltd. 的 2022 年第二季度財報電話會議。請注意，收益新聞稿和相關幻燈片可在互聯網上的 Garmin 投資者關係網站 www.garmin.com/stock 上找到。我們的網站也將提供網絡廣播和相關成績單的存檔。

This earnings call includes projections and other forward-looking statements regarding Garmin Limited and its business. Any statements regarding our financial -- our future financial position, revenues, earnings, gross margins, operating margins, future dividends or share repurchases, market share, product introductions, future demand for our products and plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin. Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.

本次財報電話會議包括有關 Garmin Limited 及其業務的預測和其他前瞻性陳述。任何關於我們財務的陳述——我們未來的財務狀況、收入、收益、毛利率、營業利潤率、未來股息或股票回購、市場份額、產品介紹、對我們產品的未來需求以及計劃和目標都是前瞻性陳述。本財報電話會議中討論的前瞻性事件和情況可能不會發生，實際結果可能因影響 Garmin 的風險因素而存在重大差異。有關這些風險因素的信息包含在我們向證券交易委員會提交的 10-K 表格中。

In particular, there is significant uncertainty about the duration and impact of the COVID-19 pandemic. This means that results could change at any time, and any statement about the impact of COVID-19 on the company's results could change at any time. These results and outlook is the best estimate based on the information available as of today's date.

特別是，COVID-19 大流行的持續時間和影響存在很大的不確定性。這意味著結果可能隨時發生變化，任何關於 COVID-19 對公司結果影響的陳述都可能隨時發生變化。這些結果和展望是基於截至今天可用信息的最佳估計。

Presenting on behalf of Garmin Limin this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer. At this time, I would like to turn the call over to Cliff Pemble.

今天上午代表 Garmin Limin 出席的是總裁兼首席執行官 Cliff Pemble； Doug Boessen，首席財務官兼財務主管。此時，我想將電話轉給 Cliff Pemble。

Thank you, Teri, and good morning, everyone. As reported earlier today, consolidated revenue came in at $1.24 billion, down 6% from the strong pandemic-driven comparable of 2021. We generated $293 million of operating profit for the quarter, which was down 21% from the prior year, and operating margin was 23.6%.

謝謝你，泰瑞，大家早上好。正如今天早些時候報導的那樣，合併收入為 12.4 億美元，比 2021 年由大流行驅動的強勁可比收入下降 6%。我們本季度的營業利潤為 2.93 億美元，比上年下降 21%，營業利潤率和營業利潤率為 23.6%。

Our performance in the quarter was influenced by several factors. First, the U.S. dollar strengthened significantly over the prior year relative to other major currencies and unfavorably impacted second quarter revenue by approximately $57 million. Our strategy for managing currency fluctuations of this nature is to increase prices where we are able and reset pricing as we introduce innovative new products. We believe this approach is very effective in managing currency changes over the long term, but the rapid and relentless strengthening of the U.S. dollar will be a significant headwind for the remainder of the year. From a business segment perspective, underperformance in fitness had a significant impact on our results, which I will cover in more detail in just a moment. And finally, we continue to experience supply chain constraints, which limited the orders we could fill in the quarter, specifically in marine and aviation.

我們在本季度的表現受到幾個因素的影響。首先，相對於其他主要貨幣，美元比上一年顯著走強，對第二季度的收入造成了約 5700 萬美元的不利影響。我們管理這種性質的貨幣波動的策略是在我們能夠提高價格的情況下提高價格，並在我們推出創新的新產品時重新定價。我們認為，這種方法在長期管理貨幣變化方面非常有效，但美元的快速和持續走強將成為今年剩餘時間的重大不利因素。從業務部門的角度來看，健身表現不佳對我們的業績產生了重大影響，稍後我將更詳細地介紹這一點。最後，我們繼續遇到供應鏈限制，這限制了我們在本季度可以完成的訂單，特別是在海運和航空方面。

Considering our performance so far, we're adjusting expectations for the remainder of the year. We now anticipate revenue of approximately $5 billion, which is flat to the prior year, and EPS of $4.90, representing a year-over-year decline of approximately 16%. This new guidance assumes currency exchange rates stabilize at current levels, and we have adjusted growth expectations for fitness and marine, which reflect the current trends.

考慮到我們迄今為止的表現，我們正在調整今年剩餘時間的預期。我們現在預計收入約為 50 億美元，與去年持平，每股收益為 4.90 美元，同比下降約 16%。這一新指導假設貨幣匯率穩定在當前水平，我們調整了健身和海洋的增長預期，這反映了當前的趨勢。

Doug will provide more details on our financial results and updated guidance in just a moment, but first, I'll provide highlights on the performance and outlook of each business segment. Starting with fitness, revenue decreased 34% to $272 million. Gross and operating margins were 49% and 9%, respectively, resulting in operating income of $23 million. The second quarter decline was broad-based, impacting all categories in the segment and was primarily driven by demand normalization in the advanced wearable and cycling categories. These are categories which benefited significantly from pandemic fuel demand in the first half of 2021.

道格將在稍後提供有關我們財務業績和更新指導的更多詳細信息，但首先，我將重點介紹每個業務部門的業績和前景。從健身開始，收入下降 34% 至 2.72 億美元。毛利率和營業利潤率分別為 49% 和 9%，營業收入為 2300 萬美元。第二季度的下降是廣泛的，影響了該細分市場的所有類別，主要是由於高級可穿戴和自行車類別的需求正常化。這些類別從 2021 年上半年的大流行燃料需求中受益匪淺。

Although our Q2 performance was disappointing, we are encouraged by the response to our new product introductions. During the quarter, we celebrated Global Running Day with the launch of 2 new running watches, the Forerunner 255 and the Forerunner 955. The Forerunner 955 solar version is our first running watch with solar charging capability, which provides up to 20 days of battery life in smartwatch mode. We also launched the Edge 1040 cycling computer featuring solar charging capability for superior battery life and multiband GPS technology for accurate, high-performance positioning in the most challenging ride environments, such as those found in urban areas or dense street cover. Given the year-to-date performance and current trends, we now expect fitness revenue to decline 25% for the year.

儘管我們第二季度的表現令人失望，但我們對新產品推出的反應感到鼓舞。在本季度，我們推出了兩款新的跑步手錶，即 Forerunner 255 和 Forerunner 955，慶祝全球跑步日。Forerunner 955 太陽能版是我們第一款具有太陽能充電功能的跑步手錶，可提供長達 20 天的電池續航時間在智能手錶模式下。我們還推出了 Edge 1040 騎行碼表，具有太陽能充電功能，可延長電池壽命和多頻段 GPS 技術，可在最具挑戰性的騎行環境中進行準確、高性能的定位，例如在市區或密集街道覆蓋的環境中。鑑於年初至今的表現和當前趨勢，我們現在預計今年健身收入將下降 25%。

Moving to outdoor. Revenue increased 18% to $382 million with growth across multiple categories led by adventure watches. Gross and operating margins were strong at 66% and 40%, respectively, resulting in operating income of $154 million. During the quarter, we launched the tactix 7, a premium smartwatch with unique capabilities such as night vision compatibility as well as advanced tactical performance and risk-based navigation features. The outdoor segment has been a strong performer so far, and we are maintaining our revenue growth estimate of 20% for the year.

搬到戶外。收入增長 18% 至 3.82 億美元，其中冒險手錶引領了多個類別的增長。毛利率和營業利潤率分別高達 66% 和 40%，營業收入為 1.54 億美元。在本季度，我們推出了高級智能手錶 tactix 7，它具有獨特的功能，例如夜視兼容性以及先進的戰術性能和基於風險的導航功能。到目前為止，戶外業務表現強勁，我們維持對今年收入增長 20% 的預期。

Looking next to aviation. Revenue increased 13% to $205 million driven by growth in both OEM and aftermarket categories. Gross and operating margins were strong at 72% and 30%, respectively, resulting in operating income of $62 million. During the quarter, supply chain constraints eased bringing back orders down from historically high levels, but we have more work to do to meet the strong demand for our products.

看旁邊的航空。在 OEM 和售後市場類別增長的推動下，收入增長了 13% 至 2.05 億美元。毛利率和營業利潤率分別高達 72% 和 30%，營業收入達到 6200 萬美元。在本季度，供應鏈限制有所緩解，訂單從歷史高位回落，但我們還有更多工作要做，以滿足對我們產品的強勁需求。

We recently announced that we now have more than 25,000 integrated flight decks in service across a broad range of application, from piston trainers to transcontinental business jets. This achievement demonstrates the unmatched versatility and capability of our integrated flight deck systems. The aviation segment has delivered solid performance so far and we are maintaining our revenue growth estimate of 10% for the year.

我們最近宣布，我們現在有超過 25,000 個綜合飛行甲板在廣泛的應用中使用，從活塞教練機到橫貫大陸的公務機。這一成就展示了我們的綜合駕駛艙系統無與倫比的多功能性和能力。迄今為止，航空部門的表現穩健，我們維持對今年收入增長 10% 的預期。

Turning next to the marine segment. Revenue decreased 7% to $243 million. Demand for our products was even higher than it was during the historic second quarter of 2021, but we were unable to satisfy all of the demand due to supply chain constraints. Gross and operating margins were 57% and 28%, respectively, resulting in operating income of $69 million.

在海洋段旁邊轉彎。收入下降 7% 至 2.43 億美元。對我們產品的需求甚至高於歷史性的 2021 年第二季度，但由於供應鏈限制，我們無法滿足所有需求。毛利率和營業利潤率分別為 57% 和 28%，營業收入為 6900 萬美元。

Since it was first introduced in 2018, our LiveScope sonar system has been a game changer for the inland lake fishing market and has been a growth catalyst for the marine segment. We recently expanded our product lineup with the introduction of the LiveScope XR system, which operates at greater depths and expands the addressable market for live action sonar to coastal and deep lake fishing applications. We're excited to bring live scope technology to the deep fishing market and believe it represents another growth opportunity for the marine segment. Given our performance so far this year and the anticipated return of normal seasonality patterns in the marine market, we will now expect revenue growth of 5% for the year.

自 2018 年首次推出以來，我們的 LiveScope 聲納系統已經改變了內陸湖泊漁業市場的遊戲規則，並成為海洋領域的增長催化劑。我們最近通過引入 LiveScope XR 系統擴展了我們的產品陣容，該系統在更深的深度運行並將實景聲納的潛在市場擴展到沿海和深湖捕魚應用。我們很高興將實時示波器技術帶入深海捕魚市場，並相信它代表了海洋領域的另一個增長機會。鑑於我們今年迄今為止的表現以及海運市場正常季節性模式的預期回歸，我們現在預計今年的收入增長為 5%。

Looking finally at auto. Revenue decreased 6% to $139 million with declines in both consumer and OEM categories. Consumer was impacted by lower sales of consumer PNDs, while OEM was impacted by reduced orders from automakers who face their own supply chain challenges. Gross margin was 40%, and we recorded an operating loss of $15 million driven by ongoing investments in auto OEM programs.

終於看到汽車了。收入下降 6% 至 1.39 億美元，消費和 OEM 類別均出現下滑。消費者受到消費者 PND 銷量下降的影響，而 OEM 受到面臨自身供應鏈挑戰的汽車製造商訂單減少的影響。毛利率為 40%，由於對汽車 OEM 項目的持續投資，我們錄得 1500 萬美元的經營虧損。

During the quarter, we entered a new product category with the launch of our first diesel headset, offering truck drivers high-quality audio, up to 50 hours of continuous talk time, and unique integration features with our diesel navigator units. While the first half of the year has been slightly below expectations, we believe growth will resume in the second half as automaker production improves. As a result, we are maintaining our revenue growth estimate of 5% for the year.

在本季度，我們推出了第一款柴油耳機，進入了一個新產品類別，為卡車司機提供高質量的音頻、長達 50 小時的連續通話時間，以及與我們的柴油導航裝置的獨特集成功能。雖然上半年略低於預期，但我們認為隨著汽車製造商產量的改善，下半年將恢復增長。因此，我們維持全年收入增長 5% 的預期。

So in closing, while we are facing a variety of headwinds, it's important to remember, our diversified business model provides many opportunities for growth within each segment. We have a very strong product lineup, and more new products are on the way. We remain focused on what we can control, and we'll be agile and opportunistic as we navigate the evolving macroeconomic environment.

因此，最後，雖然我們面臨各種不利因素，但重要的是要記住，我們多元化的商業模式為每個細分市場提供了許多增長機會。我們擁有非常強大的產品陣容，更多的新產品正在開發中。我們仍然專注於我們可以控制的事情，我們將在不斷變化的宏觀經濟環境中保持敏捷和機會主義。

So that concludes my remarks. Next, Doug will walk you through additional details on our financial results. Doug?

我的發言到此結束。接下來，Doug 將向您詳細介紹我們的財務業績。道格？

Thanks, Cliff. Good morning, everyone. I'd like to begin by reviewing our second quarter financial results, provide comments on the balance sheet, cash flow statement, taxes and updated guidance. We posted revenue of $1.41 billion (sic) [$1.24 billion] for the second quarter, representing a 6% decrease year-over-year. Gross margin was 58.7%, and actually flat compared to the prior year quarter as favorable segment and product mix offset the unfavorable impact of foreign exchange rates and higher freight costs.

謝謝，克里夫。大家，早安。我想首先回顧一下我們第二季度的財務業績，就資產負債表、現金流量表、稅收和更新的指導意見發表評論。我們公佈第二季度的收入為 14.1 億美元（原文如此）[12.4 億美元]，同比下降 6%。毛利率為 58.7%，與去年同期相比實際上持平，因為有利的細分市場和產品組合抵消了匯率和更高運費成本的不利影響。

Operating expense as a percentage of sales was 35.1%, a 230 basis point increase in the prior year quarter. Operating income was $293 million, a 21% decrease. Operating margin was 23.6%, a 440 basis point decrease. Our GAAP EPS was $1.33, pro forma EPS was $1.44.

營業費用佔銷售額的百分比為 35.1%，比去年同期增加 230 個基點。營業收入為 2.93 億美元，下降 21%。營業利潤率為 23.6%，下降 440 個基點。我們的 GAAP 每股收益為 1.33 美元，備考每股收益為 1.44 美元。

Next, look at our second quarter revenue by segment and geography. In the second quarter, double-digit growth in the outdoor and aviation segments were more than offset by declines in fitness, marine and auto segments. By geography, the Americas region was flat, contributed about half of revenue for the quarter. The EMEA and APAC regions, both impacted by foreign exchange rates, declined during the quarter.

接下來，按細分市場和地理位置查看我們第二季度的收入。在第二季度，戶外和航空領域的兩位數增長被健身、航海和汽車領域的下降所抵消。按地域劃分，美洲地區持平，貢獻了本季度約一半的收入。受匯率影響的歐洲、中東和非洲和亞太地區在本季度有所下降。

Looking next at operating expenses. Second quarter operating expenses increased by $26 million or 6%. Research and development increased $15 million year-over-year primarily due to engineering personnel costs. SG&A increased $10 million compared to prior year quarter, primarily due to increases in personnel-related expenses, information technology costs. Our advertising expense is relatively consistent year-over-year.

接下來看看運營費用。第二季度運營費用增加了 2600 萬美元或 6%。主要由於工程人員成本，研發同比增加了 1500 萬美元。 SG&A 與去年同期相比增加了 1000 萬美元，主要是由於人事相關費用、信息技術成本的增加。我們的廣告費用同比相對穩定。

The highlights on the balance sheet, cash flow statement and taxes. We ended the quarter with cash and marketable securities approximately $2.9 billion. Accounts receivable increased sequentially to $699 million, while the seasonally stronger second quarter declined year-over-year relatively in line with our sales decline. Inventory balance increased year-over-year to approximately $1.5 billion. We're executing our strategy to increase [data] supply to support our increasingly diversified product lines, optimize the mix of ocean versus air freight shipments, and to carry sufficient levels of raw materials safety stock to mitigate increased lead times.

資產負債表、現金流量表和稅收的亮點。我們在本季度末擁有約 29 億美元的現金和有價證券。應收賬款環比增長至 6.99 億美元，而季節性較強的第二季度同比下降，與我們的銷售額下降相對應。庫存餘額同比增加至約 15 億美元。我們正在執行增加 [數據] 供應的戰略，以支持我們日益多樣化的產品線，優化海運與空運的組合，並攜帶足夠水平的原材料安全庫存以減少交貨時間的增加。

During the second quarter of 2022, we generated free cash flow of $5 million, a $115 million decrease from prior quarter primarily due to lower operating income and increased operating capital needs. Capital expenditures for the second quarter were $75 million. We expect full year 2022 free cash flow to be approximately $500 million, capital expenditures of approximately $300 million. Also in the quarter, we paid dividends of $129 million, repurchased $31 million of company shares, leaving $260 million remaining share repurchase program authorized through December 2023.

在 2022 年第二季度，我們產生了 500 萬美元的自由現金流，比上一季度減少了 1.15 億美元，主要是由於營業收入下降和運營資本需求增加。第二季度的資本支出為 7500 萬美元。我們預計 2022 年全年自由現金流約為 5 億美元，資本支出約為 3 億美元。同樣在本季度，我們支付了 1.29 億美元的股息，回購了 3100 萬美元的公司股票，剩餘 2.6 億美元的股票回購計劃授權至 2023 年 12 月。

For the second quarter of 2022, the effective tax rate was 7.6% compared to 14.8% in the prior year quarter. The decrease in effective tax rate was primarily due to income mix by tax jurisdiction, an increase in U.S. tax deductions and credits.

2022 年第二季度的有效稅率為 7.6%，而去年同期為 14.8%。有效稅率的下降主要是由於稅收管轄區的收入組合、美國稅收減免和抵免的增加。

Turning next to our full year guidance. We estimate revenue of approximately $5 billion compared to our previous guidance of $5.5 billion. As previously mentioned, strengthening of the U.S. dollar is a significant unfavorable impact on our second quarter revenue. Assuming the euro will be at parity with the U.S. dollar for the remainder of the year, year-over-year unfavorable revenue impact will accelerate in the back half of 2022. We expect gross margin to be approximately 56.7%, which is lower than our previous guidance, 57.5%, primarily due to the anticipated full year unfavorable impact of foreign exchange rates.

接下來是我們的全年指導。我們估計收入約為 50 億美元，而我們之前的指引為 55 億美元。如前所述，美元走強對我們第二季度的收入產生了重大不利影響。假設歐元在今年餘下時間與美元持平，2022 年下半年對收入的不利影響將在 2022 年下半年加速。我們預計毛利率約為 56.7%，低於我們的之前的指引為 57.5%，主要是由於預期全年外匯匯率的不利影響。

We expect operating margin of approximately 20%. Also, we expect a pro forma effective tax rate of 8.5%, which was lower than our previous guidance of 10.5% to projected full year income mix by tax jurisdiction. This results in expected pro forma earnings per share approximately $4.90.

我們預計營業利潤率約為 20%。此外，我們預計備考有效稅率為 8.5%，低於我們之前對按稅收管轄區預測的全年收入組合 10.5% 的指引。這導致預期的每股備考收益約為 4.90 美元。

This concludes our formal remarks. Jonathan, can you please open the line for Q&A?

我們的正式發言到此結束。喬納森，你能打開問答熱線嗎？

(Operator Instructions) Our first question comes from the line of Paul Chung from JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Paul Chung。

So just first up on fitness. Where are we on kind of the channel levels on some of the cycling products? And what's been the initial demand kind of feedback for refreshing some of the 4 underlines, including the 955? And how should we think about kind of the seasonality for the balance of the year for fitness? And I have a follow-up.

所以首先要健身。我們在某些自行車產品的渠道級別上處於什麼位置？對於刷新 4 個下劃線中的一些，包括 955，最初的需求反饋是什麼？以及我們應該如何考慮健身年度平衡的季節性？我有一個後續行動。

Yes. Channel levels and cycling, I would say you have to kind of look at 2 different sides of that. One is the cycle and computer side, and the other is the indoor trainer side. The cycle and computer side and the response to the new 1040 is very good, and so the inventory levels at the channel, I think, are fine. The indoor cycling side of things with the Tacx trainers, I think, generally, the market right now is heavy on inventory of all kinds of trainers from every manufacturer. And so there's kind of a backup at retail of those products, which impacts our sell-in. .

是的。通道水平和循環，我想說你必須看看它的兩個不同方面。一個是自行車和電腦端，另一個是室內訓練器端。週期和計算機方面以及對新 1040 的響應非常好，因此我認為渠道的庫存水平很好。 Tacx 訓練器的室內騎行方面，我認為，一般來說，目前市場上每個製造商的各種訓練器的庫存都很重。因此，這些產品的零售存在某種備份，這會影響我們的銷售。 .

It's going to take some time, I think, for retailers to work through that. But in general, the retail demand is generally what people would expect for this time of the year. It's not really the season yet in the Northern Hemisphere, and we should see improved retail sales in the back half as winter approaches.

我認為零售商需要一些時間來解決這個問題。但總的來說，零售需求通常是人們對一年中這個時候的預期。北半球還不是真正的旺季，隨著冬季的臨近，我們應該會看到後半部分的零售銷售有所改善。

In terms of the other fitness products, the 955 and the 255, the demand has been very good. and we're working through actually back orders on those as well.

其他健身產品955和255的需求一直很好。我們也在處理這些訂單的實際延期交貨。

Great. And then on aviation, you saw some record kind of quarterly revenues kind of resulting in very nice operating leverage for the segment. Now it's above that 30% mark again. Can you expand on some of the strength you're seeing in the segment, product mix, market share? And you've kind of provided the revenue outlook, but how should we think about the margin outlook for aviation in the second half?

偉大的。然後在航空方面，你看到了一些創紀錄的季度收入，從而為該部門帶來了非常好的運營槓桿。現在它再次超過了 30% 的標記。您能否擴展您在細分市場、產品組合、市場份額中看到的一些優勢？你已經提供了收入前景，但我們應該如何看待下半年航空業的利潤率前景？

Yes. So definitely a good quarter. I think that we were able to catch up on some of our lingering backorders in the segment. Most of those were targeted to the aftermarket. Both sides of the Aviation segment, the OEM side and the aftermarket grew in the quarter. We expect that to continue in the back half because OEMs, of course, are working to fill the back orders that they have for airplanes, which are still very strong, and we're still catching up on orders in the aftermarket side of things as well.

是的。所以絕對是一個很好的季度。我認為我們能夠趕上該細分市場中一些揮之不去的缺貨訂單。其中大部分是針對售後市場的。航空領域、原始設備製造商和售後市場在本季度均有所增長。我們預計這將在下半年繼續，因為原始設備製造商當然正在努力填補他們對飛機的延期交貨訂單，這些訂單仍然非常強勁，而且我們仍在追趕售後市場方面的訂單，因為出色地。

In terms of market share, as we've said before, we're very strong in everything from the piston singles on up through the midsize business jet, and we continue to win more platforms in those categories and are working on new projects to build our revenues for the future.

就市場份額而言，正如我們之前所說，我們在從活塞單機到中型公務機的所有領域都非常強大，我們將繼續在這些類別中贏得更多平台，並正在開發新項目以建立我們未來的收入。

And then margin-wise, I would say that aviation has been very solid when it comes to our margin profile and in that 70% margin range for gross margin, which funds a very heavy R&D investment to create the products that we offer. And kind of that mid- to upper 20 range for operating margin is kind of the sweet spot. As we get more leverage, of course, it goes up. But generally, we tend to target in that range.

然後在利潤率方面，我想說航空業在我們的利潤率狀況和 70% 的毛利率範圍內非常穩固，這為我們提供的產品提供了非常大的研發投資。營業利潤率的中上 20 範圍是一種最佳選擇。當然，隨著我們獲得更多槓桿，它會上升。但一般來說，我們傾向於在該範圍內定位。

Great. And then lastly, if I could fit one more in. Outdoor, very strong quarter with the refresh of the fenix despite some tough comps. How is the sell-through kind of tracking there and the status of the channel there? And then do you have a sense for kind of upgrade versus new users to the platform, particularly for the fenix? And any thoughts there would be great.

偉大的。最後，如果我能再裝一個。戶外，非常強勁的季度，儘管有一些艱難的比賽，但隨著 fenix 的更新。那裡的銷售跟踪以及那裡的渠道狀態如何？然後你對平台的升級和新用戶有什麼感覺嗎，特別是對於 fenix？任何想法都會很棒。

So the refresh has gone very well. I think it's taken us some time, but we are getting close to being caught up on the initial demand for the fenix and the epix since it was launched earlier this year. There's still some pockets of lingering back orders in those categories that we're working to catch up on. In terms of the channel, we think it's very, very healthy and seems to be normalizing right now with kind of the sell-in, sell-through being balanced. In terms of user profile, we're seeing pretty much what we have seen in recent launches, which is roughly about half of our users coming into those families are new users, and then we have upgrade users coming from all kinds of products from much older generation fenix to even our advanced wellness customers who are looking to upgrade to a more capable watch.

所以刷新非常順利。我認為這花了我們一些時間，但自今年早些時候推出以來，我們已接近滿足對 fenix 和 epix 的初始需求。在我們正在努力追趕的那些類別中，仍有一些滯留的訂單。就渠道而言，我們認為它非常非常健康，並且現在似乎正在正常化，銷售量和銷售量是平衡的。在用戶檔案方面，我們看到了我們在最近的發布中看到的差不多，大約有一半進入這些家庭的用戶是新用戶，然後我們有來自各種產品的升級用戶老一代 fenix 甚至我們希望升級到功能更強大的手錶的高級健康客戶。

And our next question comes from the line of Ben Bolin from Cleveland Research.

我們的下一個問題來自 Cleveland Research 的 Ben Bolin。

Cliff and Doug, I had a bigger picture question on inventory levels. When you think about your current balance sheet and the exposure to inventory, I know there's been some targets to build that. How have those thoughts evolved? And then a follow-on, based on behavior you're seeing from your partners, your go-to-market partners, do you have any thoughts about what they're thinking about going into the holiday selling season and their overall commitments to inventory levels from where they stand right now?

克里夫和道格，我對庫存水平有一個更大的問題。當您考慮當前的資產負債表和庫存風險時，我知道有一些目標可以建立。這些想法是如何演變的？然後是後續行動，根據您從合作夥伴、進入市場的合作夥伴那裡看到的行為，您對他們進入假日銷售季節的想法以及他們對庫存的總體承諾有任何想法他們現在所處的水平？

Yes. So maybe just a high-level comment on our overall inventory. As you know, component lead times have been very long. And so in order to ensure we have the materials to be able to meet demand, we've had to increase our weeks of supply on the raw material side. In some cases, we've been faced with what were typically, before the pandemic, 13- to 26-week lead times now extending 26- to 52-week lead times. So it's a very challenging situation. And what we don't want to do is be left with demand with no inventory to build.

是的。所以也許只是對我們整體庫存的高級評論。如您所知，組件交付週期非常長。因此，為了確保我們有能夠滿足需求的材料，我們不得不增加原材料方面的供應週數。在某些情況下，我們面臨著在大流行之前通常需要 13 到 26 週的交貨時間，現在延長了 26 到 52 週的交貨時間。所以這是一個非常具有挑戰性的情況。我們不想做的是沒有庫存可建的需求。

Additionally, on the inventory side, the freight side of things has been really challenging. And in order to solve the freight cost issue, we have to have more inventory coming on boats, which is a lower-cost mode of shipment, and that takes a very long time. And so it simply just extends the amount of inventory that we have to carry.

此外，在庫存方面，貨運方面確實具有挑戰性。而且為了解決運費問題，我們必須有更多的庫存上船，這是一種成本較低的運輸方式，而且需要很長時間。所以它只是增加了我們必須攜帶的庫存量。

We feel like the inventory we have is good inventory. We're very versatile. We can reuse components and materials that we have across many different product lines. And we feel like, in general, that most of our product lines are solid, long-term, long life cycle products that we can sell over time. So we feel very good with where we're at right now.

我們覺得我們擁有的庫存是好的庫存。我們非常多才多藝。我們可以在許多不同的產品線上重複使用我們擁有的組件和材料。總的來說，我們覺得我們的大部分產品線都是穩固的、長期的、長生命週期的產品，我們可以隨著時間的推移進行銷售。所以我們對我們現在所處的位置感覺非常好。

In terms of go-to-market and their outlook for the upcoming holiday season, it's still early days. So there's work being done to finalize all of that. The early indications that we have in some of the segments is a very strong commitment to promoting products in big quantities for the holiday season. So that's what we know so far. But again, it's probably very early days.

就進入市場和他們對即將到來的假日季節的展望而言，現在還為時過早。因此，正在完成所有這些工作。我們在某些細分市場中的早期跡象表明，我們非常堅定地致力於在假日季節大量推廣產品。這就是我們目前所知道的。但同樣，這可能還為時過早。

Okay. And then one follow-up would be, specifically as you look at the outdoor business for the adventure watches, how are you thinking about the performance of that business through year-end? And how are you balancing the potential risks of maybe you've already seen some pull-forward, you just haven't seen it yet given the refresh versus the stronger underlying secular demand . And that's it.

好的。然後一個後續行動是，特別是當您查看戶外探險手錶的業務時，您如何看待該業務到年底的表現？您如何平衡潛在風險，也許您已經看到了一些拉動，但鑑於更新與更強勁的潛在長期需求，您只是還沒有看到它。就是這樣。

Yes. So our guide for the year is up 20%. We had a strong first half. So as you can infer from the data, we expect that will moderate in the back half. We believe our product line is very strong, and we believe that, that is achievable right now. And we also have more new products coming, which should boost our overall ability to grow in the back half.

是的。因此，我們今年的指南上漲了 20%。我們上半場表現強勁。因此，您可以從數據中推斷出，我們預計這將在後半段有所緩和。我們相信我們的產品線非常強大，而且我們相信，這是現在可以實現的。而且我們還有更多的新產品即將推出，這應該會提高我們在後半段的整體增長能力。

And our next question comes from Nikolay Todorov from Longbow Research.

我們的下一個問題來自 Longbow Research 的 Nikolay Todorov。

First question on marine. I guess, Cliff, can you talk about where do you see the constraints? I know you had some constraints from prior quarter, but it seems like they have worsened. And also it seems like you're building still a strong backlog. How much of that do you consider perishable given the macroeconomic backdrop?

關於海洋的第一個問題。我想，克里夫，你能談談你在哪裡看到的限制嗎？我知道您在上一季度遇到了一些限制，但似乎它們已經惡化了。而且，您似乎仍在建立強大的積壓工作。鑑於宏觀經濟背景，您認為其中有多少是易腐爛的？

Yes. So the constraints, Nik, I would say they're not worse, but they -- in some cases, they didn't get much better during the quarter. The main issue there was key components for our chartplotters in order to be able to deliver those higher-end plotters, and we prioritize customers in the segment that impacted our selling prices.

是的。所以限制，尼克，我會說他們並沒有更糟，但他們 - 在某些情況下，他們在本季度並沒有變得更好。主要問題是我們的海圖儀的關鍵組件，以便能夠交付那些高端繪圖儀，我們優先考慮影響我們銷售價格的細分市場中的客戶。

But in general, I would say the backlog, we've made some progress into Q3 in covering some of that. And we are assuming that we'll have a greater level of seasonality, more typical of the segment. Q2 is usually the highest quarter of the year, and then it falls off as people in the Northern Hemisphere bringing their boats out of the water and put them in storage and they wait to upgrade boats and work on them in the spring. So we're assuming some of that may be deferred, but that's why we brought our guide down to about 5%.

但總的來說，我會說積壓，我們已經在第三季度取得了一些進展，涵蓋了其中的一些。我們假設我們將有更高水平的季節性，更典型的細分市場。第二季度通常是一年中最高的季度，然後隨著北半球的人們將他們的船從水里拿出來並存放起來，他們等待升級船並在春季對其進行工作，它會下降。所以我們假設其中一些可能會被推遲，但這就是我們將指南降低到 5% 左右的原因。

Okay. And then second question I have is that maybe on the OpEx side, maybe can you talk about what are the changes you're implementing following the revision in the outlook. How is the OpEx lines changing given the new outlook?

好的。然後我的第二個問題是，也許在運營支出方面，也許你能談談在展望修訂後你正在實施的改變是什麼。鑑於新的前景，運營支出線如何變化？

Yes, I think we're definitely taking a look at that, and we're looking at 2 different areas. We're being very selective in our hiring to make sure that we don't outgrow our revenue growth. And we're also looking at our general, focusing on priorities and essentials and making sure that we narrow the priorities to the most important things. So we're trying to manage that and steer it for the long term.

是的，我認為我們肯定會考慮這一點，我們正在研究兩個不同的領域。我們在招聘時非常有選擇性，以確保我們的收入增長不會超過我們的增長速度。我們也在關注我們的總體情況，關注優先事項和要點，並確保我們將優先事項縮小到最重要的事情上。所以我們正在努力管理它並長期引導它。

Okay. Last one, if I can squeeze. Fitness gross margin, should we expect, given the current environment and the inventory overhang, that high 40s is kind of the norm in the near term? Or is there any potential puts and takes that can change that direction?

好的。最後一個，如果我可以擠。考慮到當前環境和庫存過剩，健身毛利率是否應該在短期內達到 40 多歲的標準？或者是否有任何潛在的看跌期權可以改變這個方向？

Yes. In the fitness gross margin, a lot of, you said, puts and takes in it. We did see some unfavorability relating to the foreign exchange rates, which we would anticipate that to continue in the back half. Now Cliff talked about also freight. Freight's also been impacting our gross margins also there from that standpoint.

是的。在健身毛利率中，很多，你說，投入和吸收。我們確實看到了與外匯匯率有關的一些不利因素，我們預計這種情況將在下半年繼續存在。現在克里夫也談到了貨運。從這個角度來看，貨運也一直在影響我們的毛利率。

And so you've seen some of the other segment that may have seen some improvement in there like outdoor, from product mixes where they have and some things, we'll watch a higher percentage of those. But it's really going to be a function of what is that product mix portfolio that makes up that -- the fitness side of things. But probably, as you said, they're probably similar, like what you indicated our gross margins for go forward. But we do have some headwinds that we're currently facing.

因此，您已經看到其他一些細分市場可能已經看到了一些改進，例如戶外，從他們擁有的產品組合和一些東西來看，我們會看到其中更高的百分比。但這實際上將取決於構成它的產品組合組合——事物的健身方面。但可能，正如你所說，它們可能相似，就像你指出我們未來的毛利率一樣。但我們確實有一些我們目前面臨的逆風。

And our next question comes from the line of Ivan Feinseth from Tegris Financial.

我們的下一個問題來自 Tegris Financial 的 Ivan Feinseth。

Congratulations on the good aviation performance. Following the introduction of the diesel headset, do you think there's an opportunity for you to expand into aviation cockpit headsets, considering that's really only dominated by 2 companies, and none of those have the cockpit presence that you have?

祝賀航空表現出色。隨著柴油耳機的推出，您認為您是否有機會擴展到航空駕駛艙耳機，考慮到這實際上只有兩家公司主導，而這些公司都沒有您擁有的駕駛艙存在？

Yes. I think, Ivan, we're really excited about the diesel. And as I've mentioned, many times in the past, our strategies for growth are introducing new products and new product categories, entering new markets, and this reflects that commitment. Right now, we're focused on attacking the opportunities on the truck side. And then we're exploring other avenues where this kind of technology might be useful.

是的。我想，伊万，我們對柴油感到非常興奮。正如我在過去多次提到的，我們的增長戰略是推出新產品和新產品類別，進入新市場，這反映了這一承諾。現在，我們專注於攻擊卡車方面的機會。然後我們正在探索這種技術可能有用的其他途徑。

Now based on your overall bigger picture hiring and space expansion plans in Olathe, do you think that some of what you're going through that you're seeing right now is just more of short-term headwinds? And what do you feel the bigger picture growth opportunities continue to be?

現在，根據您在奧拉西的整體招聘和空間擴張計劃，您是否認為您正在經歷的一些事情只是短期的逆風？您認為更大的增長機會仍然是什麼？

Well, first, I think everyone hopes that the economic situation is short term, but none of that has really proved to be true. So we're making sure we're managing the business for the long term. We are in need of more space, in Olathe particularly, to be able to bring more people back on to campus and also focusing on those priorities that we have, particularly needing more people in aviation and some of the consumer areas as well and balancing our overall hiring needs.

嗯，首先，我認為每個人都希望經濟形勢是短期的，但這些都沒有被證明是真的。因此，我們確保我們正在長期管理業務。我們需要更多的空間，尤其是在奧拉西，以便能夠將更多的人帶回校園，並專注於我們擁有的那些優先事項，特別是需要更多的航空人員和一些消費領域，並平衡我們的整體招聘需求。

So we're committed to building out and finishing our space expansion here in Olathe. And then I think we're in good shape when it comes to overall space accommodations for our people for the next kind of phase of growth.

因此，我們致力於在 Olathe 建立和完成我們的空間擴展。然後我認為，在為我們的員工提供下一個增長階段的整體空間住宿方面，我們處於良好狀態。

Right. And in upcoming new products, can you give us some idea of the areas that we should be stay tuned and focused on, where we'll see some new products introduced this year -- for the second half of this year?

正確的。在即將推出的新產品中，您能否告訴我們一些我們應該繼續關注和關注的領域，我們將在哪些方面看到今年推出的一些新產品——今年下半年？

Well, we have introductions planned in most every segment, and so stay tuned, but I'm pretty excited about some of what's coming.

好吧，我們在每個部分都計劃了介紹，所以請繼續關注，但我對即將發生的一些事情感到非常興奮。

And our next question comes from the line of Erik Woodring from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Erik Woodring。

Maybe Cliff, I'll start with a kind of a high-level question for you and then ask one for Doug. I think as we've gone through the pandemic and now kind of in this quasi-pandemic stage, consumer electronics have gone through a near record period of elevated demand that some could now say is normalizing. I would just love to get your take, Cliff, on just how you think about the TAM for your consumer-facing businesses. Do you think it's permanently larger today than pre-COVID levels? Is there a risk that it returns? Just high-level thought process and how you're thinking about the TAM as we move kind of past the peak of the pandemic.

也許是克里夫，我會先問你一個高級問題，然後問道格。我認為，隨著我們經歷了大流行，現在處於準大流行階段，消費電子產品經歷了近乎創紀錄的需求增長期，有些人現在可以說這是正常化。 Cliff，我很想听聽您對 TAM 對面向消費者的業務的看法。您認為今天它是否永遠大於 COVID 之前的水平？有退貨的風險嗎？只是高層次的思考過程，以及當我們已經過了大流行的高峰時，你對 TAM 的看法。

Thanks, Erik. Yes, I think the pandemic certainly highlighted to people the importance of health and wellness and fitness. And so I believe that change in people's focus probably is a very long and enduring mindset. We did experience a lot of new demand and had new customers coming into our ecosystem. I believe that's a longer-term opportunity then as they use those devices and then look for a device with new capabilities, they will then look to Garmin for an upgrade. So I believe that creates an enduring customer base for us and leads to opportunities in the future.

謝謝，埃里克。是的，我認為這種流行病無疑向人們強調了健康、保健和健身的重要性。所以我相信人們關注點的改變可能是一個非常長期和持久的心態。我們確實遇到了很多新需求，並且有新客戶進入我們的生態系統。我相信這是一個長期的機會，當他們使用這些設備然後尋找具有新功能的設備時，他們會向 Garmin 尋求升級。因此，我相信這為我們創造了持久的客戶群，並為我們帶來了未來的機會。

Okay. That's helpful. And then maybe, Doug, by my math, kind of gross margins in the second half will be a bit below 56%. Operating margins will be around 18.5%. So is there any way you can just kind of help us quantify the impact of the various factors impacting kind of this new lower second half margin outlook?

好的。這很有幫助。然後，Doug，根據我的數學，下半年的毛利率可能會略低於 56%。營業利潤率將在 18.5% 左右。那麼，您有什麼方法可以幫助我們量化影響這種新的下半年利潤率前景的各種因素的影響？

Yes. Well, a big factor of that is foreign exchange rates. So as I mentioned, the -- assuming parity for euro and U.S. dollar, we should expect year-over-year impact change to accelerate. For instance, in Q2 of last year, of '21, we're about 1 20. Then this year, the average for Q2 '22 was about 1 07. And then it went to by, I think, 1 18 and 1 15. Then if you assume parity, which is similar to where we're at right now, that year-over-year exchange will accelerate. So that is impacting our gross margin there as well for the bigger piece of that piece. But then also, as we mentioned, freight is something we are managing through that also.

是的。嗯，其中一個重要因素是外匯匯率。因此，正如我所提到的，假設歐元和美元是平價的，我們應該預計同比影響變化會加速。例如，在去年的第二季度，即 21 年，我們大約是 1 20。然後今年，22 年第二季度的平均值大約是 1 07。然後它去了，我認為，1 18 和 1 15 . 然後，如果你假設平價，這與我們現在的情況相似，那麼同比交換將加速。因此，這也影響了我們在那裡的毛利率以及該部分的較大部分。但是，正如我們所提到的，貨運也是我們正在通過它來管理的東西。

And maybe if I could just clarify, would you say that FX is the only kind of incremental headwind? Or would you say freight is now more of a headwind than you expected 90 days ago?

也許如果我能澄清一下，你會說外匯是唯一一種增量逆風嗎？或者您會說貨運現在比您 90 天前的預期更不利？

It's interesting, freight. So freight was probably the biggest story. Maybe a couple of quarters ago, we were -- year-over-year. Now as Cliff mentioned, we are managing a piece of that as it relates to our inventory levels. We are trying to have a larger percentage of our shipments on ocean versus air, which is helping that. And also on a year-over-year basis, we saw some of those large increases last year in the rates. And I'd probably say, some of those rates are maybe a little bumpy here too, but more or less stabilizing. So there will probably be some ups and downs in freight through the back half of the year, kind of see what's going on with the rates, with our whether ocean there, but it won't be as significant of a driver as the FX, foreign exchange rates, which I think are going to be a bigger item that we're going to be headwind against in the back half.

有趣的是，貨運。所以貨運可能是最大的故事。也許幾個季度前，我們是 - 與去年同期相比。現在正如 Cliff 提到的，我們正在管理其中的一部分，因為它與我們的庫存水平有關。我們正努力提高海運貨物的比例，而不是空運貨物，這有助於實現這一目標。此外，與去年同期相比，我們看到去年費率大幅上漲。我可能會說，其中一些利率在這裡也可能有點顛簸，但或多或少會穩定下來。因此，今年下半年的貨運可能會有一些起伏，看看運費是怎麼回事，我們是否在那裡有海運，但它不會像 FX 那樣重要，外匯匯率，我認為這將是一個更大的項目，我們將在後半部分逆風。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Theresa Seck for any further remarks.

這確實結束了今天節目的問答環節。我想把程序交還給 Theresa Seck 以獲取進一步的評論。

Thanks, everyone, for your time. Doug and I are available for callbacks. Have a great day. Bye.

謝謝大家，您的時間。道格和我可用於回撥。祝你有美好的一天。再見。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。您現在可以斷開連接。再會。