Getting Fit During COVID-19: Garmin Records 24% Growth In Fitness Wearables
Despite the onset of the COVID-19 crisis in March, Garmin’s revenue grew by 12% in Q1 2020, reaching $856 million. This was primarily driven by sales of wearables devices, with the fitness segment surging by 24% to $223.6 million. These sales results are in line with people consuming more online fitness content during the COVID-19 lockdown.
“Now more than ever, people are looking for tools that can help them live a healthy life,” Garmin stated in its investor updated.
Garmin’s marine segment – which includes chart-plotters and advanced sonars – grew by 22%. The outdoor segment grew by 14%, while aviation was up 10%.
However, the auto segment declined by 17%, presumably because people are driving significantly less during the COVID-19 pandemic. In its earnings report Garmin stated: “Personal transportation will remain an important part of the post-pandemic world.”
Overall, Garmin now has a strong balance sheet with no debt and $2.6 billion of cash and marketable securities.
Despite these positive results, Garmin has nevertheless withdrawn its 2020 fiscal guidance due to the economic uncertainty surrounding the COVID-19 pandemic.
“The economic uncertainty and impact on consumer behavior caused by the COVID-19 pandemic affects every business, and we are no exception,” Cliff Pemble, president and CEO of Garmin, said. “However, we are optimistic for the long term because the markets we serve and the products we offer are well positioned to thrive in the future.”