Garmin’s Record Quarter Boosted By Sports Watches

Garmin reported a record $1.17 billion in first-quarter revenue, a 9% year-over-year increase from $1.07 billion. 

Despite it being a record quarter, Garmin’s fitness segment fell 28% from $308.1 million to $220.9 million, which the company attributed to “the normalization of demand for cycling products from the pandemic-driven levels in the prior year.”

Gross profit for the segment reached $106.2 million, a decrease from the $173.5 million reported the same quarter last year. Fitness’ operating income for Q12022 was $580,000 compared to last year’s $70.7 million.

Strong demand for outdoor adventure watches helped spike 50% revenue growth for the technology company’s outdoor segment, reaching $384.6 million. Operating income for the segment reached $149 million.

• In January, Garmin announced “sweeping updates” to its flagship multisport fēnix smartwatch series.
• The fēnix 7 Series has a touch screen, protective button guards, new training features, and solar charging.
• It also offers 24/7 health and wellness tools including Pulse Ox, Body Battery, Fitness Age, and Sleep Score.

Tracking Segments

The company’s marine division recorded $254.1 million in revenue and unveiled LiveScope Plus during the quarter, a high-resolution sonar for recreational fishing. Fishing pro Jason Christie, whom Garmin sponsors, won the 2022 Bassmaster Classic in March.

Revenue for Garmin’s two other segments — aviation and auto — reached $174.8 million and $138.3 million, respectively. Fitness was the only segment that saw a revenue decline.