OLATHE, Kan. (BRAIN) — Garmin Ltd. revenue decreased 4% year-over-year, with the Fitness segment experiencing an 18% decline.
Revenue for the quarter ending Sept. 24 was $1.14 billion, compared with $1.19 billion at the same time last year. Fitness revenue — including GPS head units and accessories, power meter pedals, and Tacx stationary trainers — was $280 million, compared with $342 million in the third quarter last year.
Garmin said the Fitness decrease was driven by lower demand for indoor cycling and advanced wellness products.
"Revenue was negatively impacted by the strengthening of the U.S. Dollar," said Cliff Pemble, Garmin president and CEO. "Despite this significant headwind, gross margin expanded and operating margin remained solid. Looking forward, we are lowering our revenue outlook for the remainder of the year consistent with the trends we are experiencing, while also raising our EPS guidance on an improving margin outlook. We believe that our strong lineup of innovative products and vertical integration strategy will allow us to remain strong in this challenging economic environment."
Outdoor (5%) and Aviation (4%) were the only segments reporting revenue growth. Outdoor's growth is credited to adventure watches and inReach devices and services demand.
Year-over-year net income for the third quarter decreased 19%, from $259 million to $211 million. Earnings per share decreased from $1.35 to $1.09 year-over-year.
Garmin's corporate headquarters is in Olathe. Its stock is traded on the NASDAQ under the GRMN symbol. Stock quote at Marketwatch.com.
