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Garmin Q2 revenue edges up 1%; outdoor sales surge

Published August 2, 2017

OLATHE, Kan. (BRAIN) — Garmin on Wednesday reported a 1 percent rise in second-quarter revenue, to $817 million from $812 million a year earlier, that included a 46 gain in its outdoor segment driven by strong demand for its Fenix smart watches.

Outdoor revenue for the quarter totaled $195 million, compared with $133 million in the second quarter of 2016.

But in the company’s fitness category, which includes cycling products, revenue dipped 15 percent to $181 million from $213 million a year earlier, driven primarily by a decline in the market for basic activity trackers and the timing of product introductions, Garmin stated.

“While the quarter has been challenging for fitness, we remain positive about the opportunities in the segment,” Garmin president and CEO Cliff Pemble said during an earnings call Wednesday. “…  We anticipate ending the year on a stronger note as the product refresh cycle is completed. Looking forward, we are focused on areas of opportunity, including the advanced wearables category.”

Garmin officials did not detail cycling sales during the call. 

The company’s overall net income for the quarter totaled $171 million, up 6 percent from $161 million a year earlier.

Topics associated with this article: Earnings/Financial Reports

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