Clifton Albert Pemble
President Chief Executive Officer and Director at Garmin
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%.
Our performance in the quarter was influenced by several factors. First, the US 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 US 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.
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. 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.
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 two 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.
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.
Looking next at 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. We recently announced that we now have more than 25,000 integrated flight decks in service across a broad range of applications 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.
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. 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.
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.
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.
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.
So that concludes my remarks. Next Doug will walk you through additional details on our financial results. Doug?
