OLATHE, Kan. (BRAIN) —Garmin Ltd. posted record second-quarter revenue of $955 million, an increase of 7% over the prior year's quarter and raising revenue expectations for the rest of the year.
Its fitness division, which includes cycling products, increased 12% to $251,653. Doug Boessen, CFO and treasurer, said during a conference call that just under half of that growth came from the company's acquisition of Tacx, the Dutch indoor trainer and accessory company that Garmin began distributing in June.
"We do expect Tacx for the full year to be about half of the year-over-year growth in the fitness business,” Boessen said.
The fitness division's gross and operating margins were 54% and 20%, respectively. President and CEO Cliff Pemble said Garmin is expanding the distribution of Tacx products through retailers and is investing in research and development.
"We do have a solid road map in the Tacx division for their products," said Pemble, who would not elaborate on any upcoming new products.
Because of its strong second-quarter performance, Garmin projects future revenue growth of about $3.6 billion, up from $3.5 billion. Fitness expectations remain the same at 13%.
The fitness, aviation, marine and outdoor categories collectively increased also by 12%.
