Garmin’s focus on fitness wearables pays off in second quarter 

Garmin’s fitness wearable business is heating up, accounting for 26 percent of the company’s overall growth thanks to the launch of several new wearables and increasing downloads on the company’s Connect IQ app store.Garmin’s fitness segment grew 34 percent, with revenue for 2016’s second quarter at $213 million, compared with $159 million in Q2 2015. THe company’s gross profit margin was consistent year-over-year at 56 percent, while operating margin improved to 25 percent, up four percent from the previous year. While the company reported growth in every sector, they consider wearable products to be the major contributor to growth.“Fitness and outdoor achieved impressive revenue and product growth, driven by our strengthening position in the wearables market,” Garmin CEO and president Cliff Pemble said during a recent call with investors.Garmin has made a concerted effort to put up a stronger fight in the highly competitive consumer activity tracker market. Over the year, the company has launched several new products, including the vivoactive HR, which brings heart rate monitoring from the wrist to the original vivosmart band (which required a wireless chest strap for such monitoring).Pemble said the company has focused on expanding the availability of Garmin Elevate wrist heart rate technology across the wearable product line, with the technology employed across multiple models of running products, activity trackers, and the Fenix series of outdoor “adventure” watches.

Source: Garmin’s focus on fitness wearables pays off in second quarter | MobiHealthNews

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