OLATHE, Kan. (BRAIN) — Sales and profit declined at Garmin Ltd. in the fourth quarter, but the company’s fitness business — which includes cycling products — posted its strongest gains for the period.
Fourth-quarter revenue slipped 3 percent to $781 million due to a decline in the overall market for personal navigation devices that saw Garmin’s automotive segment post a 21 percent decline in revenue for the quarter. However, the company’s outdoor, fitness, aviation and marine segments grew revenue by a combined 11 percent and contributed 66 percent of total revenue during the period, Garmin stated.
Fourth-quarter fitness sales alone grew 14 percent on the strength of Garmin’s wellness, running and cycling products, Garmin stated. For the full year, fitness sales rose 16 percent, and Garmin is forecasting 2016 growth of 10 percent for the segment.
Overall quarterly profit declined 37 percent to $132.4 million, or 70 cents a share, due in part to an income tax provision of $20.2 million during the period. Wall Street analysts had expected earnings of 48 cents a share.
For the full year, revenue dipped 2 percent to $2.82 billion, “driven mainly by global currency shifts that created significant revenue and margin headwinds,” said Garmin president and CEO Cliff Pemble, but the result exceeded analyst expectations of $2.78 billion. Profit declined 25 percent to $456.2 million.
