OLATHE, Kan. (BRAIN) — Garmin Ltd. reported record first-quarter revenue despite a 28% decrease in sales in its fitness division, which includes Garmin's cycling products.
Consolidated revenue was $1.17 billion, a 9% increase year-over-year. Three other segments posted double-digit growth led by the outdoor segment ($385 million), which grew 50% year-over-year, and was boosted by increased demand for adventure watches.
Fitness sales for the quarter were $221 million compared with $308 million at the same time last year. Cliff Pemble, president and CEO of Garmin, attributed the decline to the "normalization of demand for cycling products from the pandemic-driven levels in the prior year."
Garmin's cycling products include GPS head units and accessories, power meter pedals, and Tacx stationary trainers.
First-quarter net income dropped 4%, from $220 million to $212 million Earnings per share dropped to $1.10 from $1.15.
"We delivered another quarter of growth and record revenue in an increasingly complex and challenging business environment," Pemble said. "High freight cost and component supply challenges persist while new headwinds emerge such as the strengthening of the U.S. dollar and the uncertainty created by Russia's invasion of Ukraine. In this dynamic environment, we remain focused on creating highly differentiated products that excite our customers and lead to success."
Garmin's corporate headquarters is in Olathe. Its stock is traded on the NASDAQ under the GRMN symbol. Stock quote at Marketwatch.com.
