Garmin’s fitness segment drives more revenue than auto for the first time ever

Best known for its automotive GPS systems, Garmin Ltd. is steadily gaining ground with its wearables. For the quarter ending Dec. 31, the Olathe, Kansas-based company saw another quarter of double-digit growth in its fitness and outdoor segments, which house many of its smart watches.

It also marked the first time Garmin’s fitness segment outpaced its automotive segment, bringing in just over $274 million in net sales.

For the quarter, Garmin’s revenues grew 10 percent to $861 million. Annually, the company passed the $3 billion revenue mark for the first time since 2008, with revenues up 7 percent.

Garmin’s strong fitness segment growth was driven in part by wearables that implemented the company’s wrist heart-rate technology, and the popularity of its new vivofit jr devices designed for kids. The segment reported revenues up 20 percent for the quarter, resulting in 15 percent growth in operating income.

Garmin’s auto segment, on the other hand, continued to decline steeply last quarter. Revenues decreased 17 percent, though Garmin continues to pursue original equipment manufacturer solutions with well-known brands, such as BMW.

Read more: Kansas City Business Journal


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