Return to normal sees cycling sales dip for Garmin
Garmin has today reported its first quarter results, within which it has pointed to a “normalization” of cycling product demand on the back of a spike as a particularly strong driver of reduced overall demand in the fitness segment.
All categories of fitness goods declined, equating to a 28% decline in net sales like-for-like, but that did not stop the business recording a record consolidated revenue of $1.17 billion, a 9% increase over the prior year’s quarter, with three of the group’s segments – Outdoor, Marine and Auto – posting double digit growth. Gross margin did however drop from 59.8% to 56.5%.
“We delivered another quarter of growth and record revenue in an increasingly complex and challenging business environment,” said Cliff Pemble, President and CEO of Garmin. “High freight cost and component supply challenges persist while new headwinds emerge such as the strengthening of the U.S. 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.”
The firm’s Connect platform – that is the mobile linked app that gathers data from devices – continued to provide the firm’s data scientists with insight. Findings included the discovery that people who sleep more also experience lower levels of stress during the day. In addition, Garmin provided useful insights on the link between modest levels of activity and lower resting heart rate, which is an indicator often associated with improved cardiac health.
Garmin maintained its guidance for 2022 with revenues expected to come in at $5.5 billion with a pro-forma EPS of $5.90.
Garmin owned Tacx recently launched new Neo Motion Plates (pictured) through its dealer direct channels, giving shops access to a new multi-directional movement plate designed to improve ride feel on the Neo 2 and Neo 2T smart trainers. The plates magnetically attach to the underside of any compatible Tacx Neo smart trainer.
