Garmin reported a 6 percent increase in revenues for its Outdoor segment to $106.9 million in the second quarter, ended June 30. The growth was led by products for golf, dog tracking and training. The Fitness segment grew by 3 percent to $84.2 million on the back of new cycling products such as the Edge 510 and 810, and the Forerunner 10.
In the quarter, total sales advanced by 3 percent to $697 million as the company shipped 3,631,000 units, 7 percent fewer than a year ago. They generated a gross margin of 55 percent, down from 58.7 percent a year ago, and an operating margin of 24 percent, down from 28.4 percent. The quarterly net income dropped by 7 percent to $172 million.
The outlook is positive, but the management warns that declines in personal navigation devices will continue, driving the automotive and mobile device segment to less than 50 percent of total revenues. Overall, results should end up as expected for the full year.