OLATHE, Kan. (BRAIN) — Garmin Ltd. total revenue increased 12% in the first quarter of 2020 year-over-year, with its fitness division that includes smart-trainer sales growing 24%.
However, because of the COVID-19 pandemic, Garmin said it will withdraw its 2020 guidance until the economy and consumer behaviors are better understood.
For the quarter ending March 28, Garmin reported $856 million in total revenue, up from $766 million from Q1 last year. Fitness, marine, outdoor and aviation collectively increased 17% from the first quarter last year.
Fitness again was helped by contributions from last year's acquisition of the smart-trainer company Tacx, with gross margin and operating margin up 14%. Combined with advanced wearables (50%), both segments combined for a 71% operating income growth.
"Now more than ever, people are looking for tools that can help them live a healthy life," said Cliff Pemble, Garmin president and CEO. "Our fitness segment is committed to providing innovative and compelling products that motivate our customers to achieve their fitness, health, and wellness goals."
Year-over-year, total operating expenses in the first quarter were $329 million, a 10% increase. Gross margin was 59.2% compared to 59%. Operating margin improved to 20.7% compared to 19.8%. Operating income of $177 million increased 17%. GAAP EPS was $0.84 and pro forma EPS was $0.91, representing 25% growth.
Garmin's corporate headquarters is in Olathe. Its stock is traded on the NASDAQ under the GRMN symbol. Stock quote at Marketwatch.com.
