For the first quarter ended March 26, Garmin recorded $624 million in total revenues, up 7 percent over the same period last year, with the fitness and outdoor segments combined contributing 38.3 percent of total revenues. The company ended up with net income of $88.1 million, up 32 percent, in spite of lower gross and operating margins.
Garmin's fitness segment grew by 9 percent to $142 million in the first three months of the year on the back of strong growth from Garmin Elevate wrist-mounted heart-rate technology products in activity trackers and running categories. The segment's gross margin fell to 51 percent due to the product mix within the quarter while the operating margin dropped to 12 percent as a result of ongoing investment in advertising and in research and development. Products offered in the company's fitness segment include sport watches, cycling computers and power meters, and activity trackers. It has just started shipping Vívoactive HR and Vívofit 3, two new models of activity trackers.
Revenues from the outdoor segment jumped by 33 percent to $97 million, driven by dog-focused products and the Fenix line of wearables. The completion of DeLorme's acquisition in this quarter will likely see the consumer-based satellite tracking device maker contribute revenue to the outdoor segment beginning in the second quarter. The segment's gross and operating margins were 61 percent and 29 percent, respectively, leading to a 17 percent increase in operating income. Garmin's outdoor segment comprises outdoor handheld devices, wearable devices, golf devices, dog products and action cameras.