Garmin has announced first quarter results, with the company reporting strong double-digit revenue and operating income growth.
For the first quarter ended March 27, 2021, Garmin reported total revenue of US$1.07 billion, up 25% year on year. This was led by double-digit growth in the fitness, outdoor, marine and auto segments.
For Q1 2021, Garmin’s fitness division reported a 38% year on year revenue uplift to US$308 million. The company’s outdoor division saw 46% year on year revenue growth to US$256 million.
“Broad momentum across our business segments resulted in strong double-digit revenue and profit growth,” said Cliff Pemble, President and CEO of 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.”
With 38% revenue growth, Garmin’s fitness segment was driven by strong demand for cycling and wearable products. Gross margin and operating margin were 56% and 24%, respectively, resulting in 138% operating income growth.
During the quarter, Garmin launched Lily, billed as its ‘smallest and most fashionable smartwatch to-date’. The company also launched the Rally series of pedal power meters – including a version designed specifically for off-road cycling, seen to represent a new market opportunity.
With 46% growth in revenue from its outdoor segment, Garmin saw strong demand for adventure watches. Gross margin and operating margin were 67% and 36%, respectively, resulting in 97% operating income growth.
During the quarter, Garmin launched Enduro, a new adventure watch built for endurance racing with up to 80 hours of continuous operation in GPS mode while harvesting power from the sun.
