Business news :Garmin's Outdoor and Fitness Segments Diverge in Fourth Quarter

Garmin Ltd. said revenues at its Outdoor segment declined 2 percent to $119 million in the fourth quarter compared to a year earlier, when sales grew 35 percent. For the full year, the segment grew 11 percent and contributed $165 million of operating income.

The Outdoor segment continued to see strong results from its golf portfolio, as well as its dog-focused products.

“As we enter 2013, we are excited to offer additional products in each of those niches with the Approach S2 for the golf community and the BarkLimiter and the Delta series designed for both the pet and sport dog markets,” said Cliff Pemble, president and CEO. “These products, along with other compelling introductions to come later in the year, are expected to contribute to growth in 2013.”

Revenues at Garmin’s Fitness segment increased 10 percent to $104 million in the quarter and 8 percent to $322 million in the full year, contributing $112 million of full year operating income. Growth in the segment fell slightly short of full-year expectations due to product delays but strong fourth quarter results point to ongoing growth opportunities within the category.

“As we had anticipated, the Forerunner 10 was a popular holiday gift and we expect the momentum from that product to continue in 2013,” Pemble said. “In addition, we recently launched the connected Edge 510 and 810 for the cycling community which offer live tracking capabilities. The product pipeline is robust driving our expectations for growth in 2013.”

 

Garmin Ltd. And Subsidiaries
Revenue, Gross Profit, and Operating Income by Segment (Unaudited)
		Reporting Segments
		Outdoor			Fitness			Marine				Auto/ Mobile			Aviation			Total
13-Weeks Ended December 29, 2012
Net sales		$	118,517		$	103,973		$	39,516			$	436,654		$	69,888		$	768,548
Gross profit		$	73,990		$	62,570		$	19,995			$	166,153		$	51,146		$	373,854
Operating income		$	46,579		$	35,791			($1,583	)		$	50,557		$	18,415		$	149,759
14-Weeks Ended December 31, 2011
Net sales		$	121,045		$	94,752		$	43,250			$	579,193		$	71,404		$	909,644
Gross profit		$	82,161		$	60,989		$	25,868			$	218,738		$	46,031		$	433,787
Operating income		$	59,707		$	40,808		$	9,285			$	77,750		$	12,539		$	200,089
52-Weeks Ended December 29, 2012
Net sales		$	401,747		$	321,788		$	208,136			$	1,492,440		$	291,564		$	2,715,675
Gross profit		$	260,564		$	204,615		$	125,201			$	642,913		$	205,187		$	1,438,480
Operating income		$	164,611		$	111,807		$	34,000			$	220,766		$	72,976		$	604,160
53-Weeks Ended December 31, 2011
Net sales		$	363,223		$	298,163		$	221,730			$	1,590,598		$	284,855		$	2,758,569
Gross profit		$	238,850		$	181,759		$	129,653			$	597,017		$	191,313		$	1,338,592
Operating income		$	161,511		$	102,101		$	57,645			$	160,837		$	71,673		$	553,767

 

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