Garmin has announced its results for the company’s third quarter quarter ended 27 September 2014. Overall, total company revenue increased 10% to US$706 million in Q3 2014 – with double digit growth in four of five of the company’s reporting segments. Meanwhile, gross and operating profit margins increased from the prior year quarter to 56% and 25%, respectively.
Garmin’s Fitness segment posted revenue growth of 43% in the quarter as ‘the strong performance of numerous products and categories continued.’ Gross margins increased to 64% year on year, while operating margins were relatively consistent with the prior year due to ‘significant investments in advertising, sponsorships and point of sale displays to drive long-term market share gains.’
Cliff Pemble, Garmin’s President and Chief Executive Officer said “We believe these initiatives are already producing positive results and anticipate strong sales in the holiday quarter and beyond as we build market share in the growing global wearables category.”
He continued, “We have recently announced two additional products in the fitness segment that highlight our commitment to innovation – the vívosmart, our latest activity tracker which delivers smart notifications, and the Forerunner 920XT, our next generation multisport product with advanced running dynamics and connected features.
In the quarter, we also launched Connect IQ, an open platform for developers to create applications for Garmin wearables like the 920XT. Connect IQ opens the door to a world of possibilities for our active lifestyle customers looking to expand the utility of their Garmin device.”
