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Garmin fitness sales rise 25 percent in Q3

Published October 30, 2013
Brand enters action camera market.

OLATHE, KS (BRAIN) — Garmin Ltd.’s fitness division, which includes the company’s cycling products, saw strong sales growth in the third quarter, a period that included the introduction of the new Edge Touring cycle computer and Vector power meter. 

Fitness revenue totaled $83.5 million, up 25 percent from $64.8 million in the third quarter of 2012. The entire fitness line, which also includes the newly launched Forerunner 220 and 620 running watches, sold well through the summer season, Garmin president and CEO Cliff Pemble said in an earnings call.

The strong performance in the fitness segment—along with gains in Garmin’s marine and aviation units—helped partially offset declining sales in the company’s automotive and outdoor businesses, which were off 16 percent and 4 percent, respectively. Overall, Garmin’s Q3 revenue slipped 4 percent to $644 million.

Garmin also introduced its first action cameras during the quarter: the VIRB and VIRB Elite, both of which can be operated remotely via compatible Garmin devices. Pemble said the cameras are expected to be a growth driver for the company’s outdoor division in 2014, but they are unlikely to have a significant impact on Q4 2013 earnings due to their late-season introduction.

Topics associated with this article: Earnings/Financial Reports

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