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Fitness Sales Strong for Garmin

Published November 2, 2011

OLATHE, KS (BRAIN)—Garmin reported total revenue through September was flat compared to the same period a year ago, but revenue across its outdoor and fitness segments was up. Revenue for the third-quarter was down 4 percent to $667 million from $692 million in the third quarter of 2010.

Revenue through September totaled $1.85 billion, the company said in its earnings report. The fitness segment, which includes sales of running, golf and cycling products, accounted for $203 million of that total, a 28 percent increase compared to a year ago. But operating income was only up 4 percent. Fitness accounts for 11 percent of Garmin’s overall business.

The company called out two cycling products in its third-quarter results: the Edge 200 GPS cycling computer and Vector power meter. The Edge 200 has already been selling well and Garmin hopes that when Vector is released next year it will also capture sales.

“In the third quarter, revenue again exceeded our expectations with fitness and aviation delivering strong growth even though macroeconomic conditions continued to be challenging,” said Dr. Min Kao, Garmin’s chairman and chief executive officer.

“The fitness segment posted strong results continuing from our high‐end Forerunner 610 and Edge 800. While we have seen an increasing number of competitors in the fitness market, we have maintained our top position in the GPS-enabled fitness category,” Kao said.

Topics associated with this article: Earnings/Financial Reports

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