Garmin Q2.2020 Fitness Revenues UP

Official Garmin revenue figures for the quarter have been published and show a static corporate headline sales figure but the FITNESS segment of Garmin’s business showed STRONG growth in Q2 despite CV19. Interestingly FENIX sales are reported in the OUTDOOR segment and that didn’t perform so well but these figures will show virtually no positive impact arising from the release of the Fenix SOLAR models. In the commentary that was released with the figures, Garmin also notes the acquisition of Firstbeat and release of the Edge 1030 Plus/Edge 130 Plus.

Apart from an interesting 3% spike in the share price today there is no that much of interest by looking at the share price. When I looked at the market movements and Garmin stock movements a couple of days back they seemed to be in line with each other yet over the last 5 days, below, Garmin’s share price has slightly underperformed the NASDAQ (comparison not shown).

Takeout: Like most companies, Garmin is being hit by CV19. However, its sector-diversified portfolio has enabled it to offset losses elsewhere with big gains in Fitness. I wouldn’t bet on there being any material fall out (financial or otherwise) from the recent hacking-debacle and would better describe that as ‘an annoying storm in a tea-cup‘. One new thought sprang to mind about the acquisition of Firstbeat which should boost the profitability of the Garmin devices that use that functionality, perhaps offsetting some of the negative margin pressures from the inclusion of TACX profits (lower margin).

It will be interesting to see the impact of SOLAR on next quarter’s figures and interesting too to see what new Forerunner/Fitness products await us to keep the growth in Garmin’s biggest segment continuing.

Elsewhere, Spotify figures were very recently published and also showed growth at the top end of that company’s expectations.

Source: GarminSpotify

Minor Correction: Guidance was removed last quarter





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6 thoughts on “Garmin Q2.2020 Fitness Revenues UP

      1. Well if our GDP isn’t a good estimate for future quarters (33% down anualized, 9.5% down form Q1 to Q2), I don’t know what is.

        Maybe people doubled down on sport tech since we’ve been isolating, but if that tech is exploitable and doesn’t work, you really think consumer confidence is going to be there going forward?

      2. i saw that figure…eesh.
        what i really think is that the West is generally, economically stuffed for the next 3 or so years. there will always be individual corporate exceptions that buck the trend.

      3. To be frank for a second and to not turn this into a political tirade (because this is a blog about sport tech), the reason why it gets bad is because we have a population that wants instant gratification without any thought on their end; at least here in the states.

        If as a people just took a second and looked at some of the crap Corporations do, and do right out in the open, we’d be in a better place.

        I mean Garmin is literally out right now advertising the Venu is on sale for $50 off; while their entire system was just attacked and isn’t fully running AND haven’t given assurances to current or potential customers that it’s been addressed.

        Nope, it’s just, back to the same way we worked before and no cares given, because people don’t care.

      4. some people care or pretend to care. The real problem is worse than that. If you look at the national debt of all the countries in the world you will find that the USA is the most indebted with the UK close by in 2nd, so the problem is that we are all enjoying our lifestyles now on cheap, borrowed money that our descendents have to repay. Inflation aside, I guess you’re right and that means we don’t care.

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