Garmin, which experienced a 34% drop year-over-year in its fitness segment, failed to meet expectations with its latest earnings report.
The Kansas-based company generated $1.24 billion in revenue in Q2 2022, a 6% decline year-over-year, failing to meet Wall Street estimates of $1.34 billion in revenue for the quarter.
Several of Garmin’s business segments took a hit during the quarter that ended June 25.
- Fitness saw revenue reach $272 million compared to $413 million in Q2 2021.
- Auto sales fell by 6% during the quarter to $139.29 million.
- Its marine segment reported $242.79 million in revenue, a 7% decline year-over-year.
Known for its GPS devices, Garmin saw two business segments report growth in Q2. The company’s outdoor segment generated $381.92 million in revenue, an 18% increase year-over-year, while its aviation segment grew by 13% to $204.74 million during the quarter.
As a result of the lukewarm second quarter, Garmin downgraded its full-year revenue outlook. It projects to generate $5 billion in revenue in FY2022, down from an estimated $5.5 billion.
Sports Watches
Garmin has prioritized its line of sports watches in FY2022. In January, the company announced “sweeping updates” to its flagship multisport fēnix smartwatch series.
Its latest fēnix 7 Series watches — which retail between $699 and $999 — feature touchscreens, new training features, solar charging, and protective button guards. The products also offer 24/7 health and wellness tools including Body Battery, Fitness Age, and Sleep Score.
