Garmin’s Impressive Growth Continues
Garmin has just recently reported excellent Q1 figures for the fitness and outdoors segments.
Although the growth rate is not as high as at many times of 2020, many companies would still be delighted with the (approx) 40% QoQ growth that Garmin has achieved. The combined Fitness and Outdoors segments now account for over half a billion dollars of sales for the quarter in question, perhaps by the end of the year, those two segments alone will have a billion dollars of sales?
Garmin’s (edited) statement says this
Executive Overview from Cliff Pemble, President and Chief Executive Officer:
……“Interest in fitness, health, and active lifestyle products has never been higher, and we believe that we are well positioned to capitalize on the opportunities ahead…”
Revenue from the fitness segment grew 38% in the first quarter driven by strong demand for our cycling and advanced wearables products. Gross margin and operating margin were 56% and 24%, respectively, resulting in 138% operating income growth. During the quarter, we launched Lily, our smallest and most fashionable smartwatch to-date. We also launched the Rally™ series of power meters including a version designed specifically for off-road cycling, representing a new market opportunity.
Revenue from the outdoor segment grew 46% in the first quarter with growth across all categories led by strong demand for adventure watches. Gross margin and operating margin were 67% and 36%, respectively, resulting in 97% operating income growth. During the quarter, we launched Enduro, a new adventure watch built for endurance racing with up to 80 hours of continuous operation in GPS mode while harvesting power from the sun…
Garmin’s share price fell around the time of the news release at a slightly higher decline than the decline in the NASDAQ at the same time.