Garmin – IMPRESSIVE Q3 sales figures.

Garmin’s shares have jumped about 5% on news of a great last quarter performance.

Obviously here we are only interested in the sport/fitness/outdoors part of Garmin but that did very well too.

First up, a share price jump like this really does show that Garmin exceeded analysts’ expectations and it does not represent a jump in line with general market movements for macro economic reasons.

Here are some headlines and then a pretty graph. Well, Garmin investors will think it’s pretty.

• Fitness – up 28% on the same quarter last year and the YTD is up 16% compared to the same period in 2018.
• Outdoor – up 23% and 12% on the same time periods. This includes the Fenix lines (3/5/6 and I assume MARQ)

Don’t forget that the new products released in Q3 (Jul-Sep = Fenix, Venu, Vivoactive 4, Vivomove) WILL be included in trade sales to resellers who will have pre-ordered from Garmin in bulk on or before the release date. The figures do NOT generally represent retail sales to you and me (apart from Garmin’s direct sales, of which there will be some)

I’ve noticed some very positive movements in my own internal stats for this site that relate to the new products but, nevertheless, I am pleasantly surprised about the magnitude of Garmin’s announcements today.

Press Release Quotes

Fitness:

Revenue from the fitness segment grew 28% in the quarter driven by strength in wearables and contributions from Tacx. Gross and operating margins were 52% and 20%, respectively. At IFA, Europe’s leading consumer electronics trade show, we announced a sweeping update to our line of consumer wearable products including new versions of the vÍvoactive series in two sizes, the vÍvomove 3 hybrid smartwatch series, and the all new Venu smartwatch featuring a brilliant AMOLED color touchscreen display and long battery life.

Outdoor:

Revenue from the outdoor segment grew 23% in the quarter with growth in multiple product categories, led by strong performance in the adventure watch category. Gross and operating margins improved to 66% and 41%, respectively, resulting in strong operating income growth. At the recent Ultra-Trail du Mont-Blanc running event, we launched the fēnix 6 adventure watch series with larger displays, innovative performance features and Garmin’s exclusive solar harvesting technology. We also announced the addition of the MARQ^TM Commander to our collection of luxury tool watches.

Source: Garmin