OLATHE, Kan. (BRAIN) — Garmin on Wednesday reported double-digit growth in first-quarter revenue for all business segments except automotive/mobile, where declining demand for personal navigation devices dragged sales down 4 percent compared with a year earlier.
Overall, Garmin reported revenue of $583 million for the period, up 10 percent from a year earlier, and a 34 percent jump in net income to $119 million.
Revenue in Garmin’s outdoor segment rose 10 percent to $76.2 million, but the company acknowledged difficulty gaining market traction for its VIRB action cameras, introduced in last year’s third quarter.
“To date, market-share gains have developed more slowly than planned due to the relative maturity of the market and the existence of strong, well-entrenched competitors,” president and CEO Cliff Pemble said in an earnings call. “However, we entered this market because we believe we have unique innovations to offer customers pursuing active lifestyles.”
To spur growth, Garmin launched new advertising and sponsorships during the quarter to support VIRB, and is also stepping up R&D for its next generation of action cameras, Pemble said.
Garmin saw strong performance in its fitness segment, where revenue rose 38 percent to $100.3 million on robust sales of its Forerunner 220 and 620 GPS running watches and the mid-quarter introduction of its Vivofit fitness band.
“The launch of the Vivofit has gone well, and we expect it to be a driver of growth as the wellness market rapidly expands,” Pemble said.
Garmin’s fitness division also introduced the new Edge 1000 high-end cycling computer during the quarter but did not provide information on sales performance to date.
Revenues in Garmin’s aviation and marine segments both grew 19 percent during the quarter, to $96 million and $60 million, respectively.
Garmin trades on the Nasdaq Stock Market under the symbol GRMN. Its stock performance is tracked on BRAIN’s Industry Stock Chart.
