OLATHE, Kan. (BRAIN) — Garmin on Wednesday reported a 3 percent increase in third-quarter revenue to $743 million, but the company's fitness segment — which includes cycling products — saw sales decline 12 percent during the period to $167 million.
"The decrease in revenue was primarily driven by the decline of the basic activity tracker market and the timing of our recent product introductions partially offset by growth in the running category," Garmin stated.
Sales in Garmin's outdoor, aviation and marine segments all posted double-digit growth to help offset its flagging automotive business, which declined 12 percent during the quarter to $189 million.
Outdoor revenue alone rose 31 percent to $185 million on strong sales of wearable devices "We experienced strong demand for the Fenix 5 watch series and expect this trend to continue throughout the holiday quarter," CEO Cliff Pemble said during an earnings call.
The outdoor division also entered the dive market during the quarter with the introduction of the Descent dive watch and introduced its first product for the baseball market with the Impact bat swing sensor.
Garmin's marine business saw third-quarter revenue rise 10 percent to $77 million. The company announced this week that it has acquired Navionics, a provider of electronic marine content and applications.
The company raised its overall 2017 revenue guidance to $3.07 billion from a previously stated $3.04 billion.
