OLATHE, Kan. (BRAIN) — Garmin Ltd. reported first-quarter revenue grew 25% year-over-year, boosted by demand for cycling products that included the release of the Rally power meter pedal series.
The fitness segment, which the cycling division falls under, experienced a 38% jump in revenue compared to the same period last year. The Rally power meter pedal line includes an off-road model, a new market opportunity for Garmin.
"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," said Cliff Pemble, Garmin's president and CEO.
Fitness operating income grew 138% in the quarter, which also was helped by growth in advanced wearable products, including the release of the Lily smartwatch.
Garmin's total revenue was $1.07 billion for the quarter. Fitness revenue was $308 million. In addition to fitness, Garmin had double-digit revenue growth in outdoor, marine, and auto segments. The Outdoor group was helped by the release of the Enduro, an adventure watch designed for endurance racing with up to 80 hours of continuous operation in GPS mode.
Overall Garmin net income was $220 million, up from $161 million year-over-year. Earnings per share went up to $1.15 from $0.84 at the same time last year.
Garmin's corporate headquarters is in Olathe. Its stock is traded on the NASDAQ under the GRMN symbol. Stock quote at Marketwatch.com.
