Garmin has reported revenue growth of 7% in the first quarter, with Outdoor leading the charge in the company’s financials.
Up 33%, the outdoor segment offset a 11% dip in automotive sales, while fitness equipment growth came in at 9%.
In the quarter ending March 26th, the company’s gross and operating margins did dip, meaning the firm posted 54.5% gross profit, down from 58.8% in the same period in 2015.
Specifically within the fitness segment, on a year-over-year basis, gross margin and operating margin dipped to 51 percent and 12 percent, respectively. This decline was put down to product mix within the quarter, as well as a continued investment in advertising and R&D. Garmin has said its advertising spend rose 16 percent.
During the quarter Garmin finalised the acquisition of DeLorme, a specialist in two-way communication, something which has lead to speculation of integration of text messaging capability in the firms’ cycle computers.
“We started out 2016 strong with total revenue growth of 7 percent led by robust double digit growth in our marine and outdoor segments, and high single digit growth in our fitness and aviation segments,” said Cliff Pemble, president and chief executive officer (CEO) of Garmin Ltd. “With the majority of the year still ahead of us, we recognize that there are many challenges and uncertainties yet to be encountered. We will continue to focus on innovation and execution to deliver compelling products to the markets we serve.”
Looking further into 2016 Garmin has maintained a goal of approximately $2.82 billion in revenue for the year.