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Garmin sales hit record for first quarter; CEO says Tacx brand will continue

Published May 1, 2019

OLATHE, Kan. (BRAIN) — Garmin Ltd. reported record first-quarter revenue of $766 million with its fitness, outdoor and aviation divisions collectively increasing 12% from the prior year's quarter.

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Its fitness sales numbers, which include cycling products, climbed 8.57% (from $166 million to $180 million).

Overall, Garmin's revenue increased 8%.

"We are optimistic as we enter the important midyear selling season," said Cliff Pemble, Garmin president and chief executive officer. "Our product portfolio is very strong, bolstered by recent introductions, with more to come throughout the remainder of the year."

One addition to that portfolio is the pending acquisition of Tacx, the Dutch indoor smart-trainer company, expected to close during the second quarter this year.

“We see an opportunity for growth in the Americas and Asia, where they’re less represented,” Pemble said during a conference call.

He said the Garmin would continue the Tacx name, an unusual decision for Garmin. In most prior acquisitions, Garmin has absorbed the intellectual property and brought out new products under the Garmin name. Examples include its acquisition of Metrigear in 2011, which led to the Garmin Vector power meter; and its 2015 purchase of the company that made the Backtracker radar device, which became the Garmin Varia rearview radar product.  But those recent Garmin acquisitions were startups, not established brands like Tacx.

“The Tacx name is very strong,” Pemble said. “We want to maintain that. Tacx’s emphasis before we acquired them was that smart trainers and advanced trainers are their speciality, and we’re going to be investing into that.”

Pemble said Garmin will bring Tacx into U.S. distribution in a more complete way this year. “That’s ongoing and should be more evident as we move into the back half of the year.”

 

Topics associated with this article: Earnings/Financial Reports

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