Garmin recorded a 16 percent increase in the revenues of its outdoor segment to $77 million in the first quarter, thanks in part to continued good performance for the company's expanding range of golf products. Dog tracking and training systems contributed to the growth, too.
An even higher 26 percent increase was recorded by Garmin in the fitness segment to $71 million, thanks in part to the launch of a second-generation triathlon watch. The company feels that this segment is underpenetrated. It is working on new products for cycling and running.
The strong showing in these two sports-related segments allowed the company to score 10 percent growth in total sales to $508 million for the period. Lower increases were registered in the automotive and mobile sector (6 percent), and for marine (9 percent) and aerial (5 percent) applications.
Across the various divisions, European sales jumped by 16 percent to $199 million, in contrast with increases of 6 percent in North America and 8 percent in Asia. The gross margin improved to 51 percent and the operating margin rose to 16 percent of sales. Pre-tax income was marginally higher than a year ago, but because of higher taxation, the company's net income declined to $86.8 million from $95.5 million.