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Garmin Q1 revenue rises 2%; fitness sales dip

Published May 3, 2017

OLATHE, Kan. (BRAIN) —  Garmin on Wednesday reported a 2 percent gain in first-quarter revenue, to $639 million, as sales growth in its outdoor, marine and aviation segments countered declines in fitness and automotive sales.

Outdoor revenue rose 20 percent, to $116 million, on strong demand for outdoor wearables. Fitness revenue, which includes sales of Garmin’s cycling products, dipped 3 percent to $138 million during the period due to the maturing market for activity trackers — particularly those without GPS capability, Garmin president and CEO Cliff Pemble stated in an earnings call.

“While we continue to see the market for basic activity trackers mature, we also see growth opportunities in advanced wearables with GPS, and we’re confident in our product map going forward,” Pemble said. Company officials did not detail cycling product sales during Wednesday’s earnings call.

Overall, Garmin’s pro-forma net income for the first quarter rose 7 percent to $99 million, or 52 cents per share, topping Wall Street expectations.

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