Garmin has announced results for its first quarter ended March 26, 2022, with consolidated revenue of US$1.17 billion, up 9% year on year. For the group overall, gross and operating margins were 56.5% and 19.5%, respectively.
Yet, revenue from Garmin’s fitness segment decreased 28% in the first quarter to US$221 million. All fitness categories declined. The company noted that… ‘the weakness was primarily attributable to the normalization of demand for cycling products from the pandemic-driven levels in the prior year.’
Gross and operating margins for the fitness division were 48% and 0% in the quarter, respectively, resulting in US$1 million of operating income.
Revenue from Garmin’s outdoor business unit grew a robust 50% to US$385 million in Q1 2022, primarily due to strong demand for adventure watches. Gross and operating margins were 64% and 39%, respectively, resulting in US$149 million of operating income.
Cliff Pemble, President and Chief Executive Officer of Garmin, said “We delivered another quarter of growth and record revenue in an increasingly complex and challenging business environment.
“High freight cost and component supply challenges persist while new headwinds emerge such as the strengthening of the US 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.”
