Garmin reported its earnings for the fourth quarter, 2020, today. The company reported total revenues of $1.35 billion, a 23% increase over the prior-year quarter. This marks the fifth consecutive year of revenue and operating income growth for the company.
The Fitness Segment saw an impressive 26% growth in the fourth quarter driven by strong demand for advanced wearables and cycling products.
The other prominent category related to the Fitness segment was Outdoors. Revenues from the outdoor segment grew 40% in the fourth quarter, led by strong demand for Garmin’s adventure watches.
- Personalized fitness routines and recommendations coming soon to your smartwatch
- Digital Health app Cutback Coach raises $3.1 million to promote healthier drinking habits
- Sports Tech company Orreco raised $3.6 million from True Ventures
Garmin has also been quite active in releasing a new product line and services in the Fitness and Outdoor category
- During the quarter, the company launched the Mk2i dive watch and T1 tank transmitter.
- Launched Tacx Boost, an indoor cycling trainer, along the lines of Peloton Bikes
- Added pregnancy tracking to Garmin Connect, providing new tools to women who want to remain fit and healthy during pregnancy
Garmin has also been active in the acquisitions area
It recently announced the acquisition of all the assets of GEOS Worldwide Ltd, a leading provider of emergency monitoring and response services for customers worldwide, marking an entry into the area of emergency monitoring.
Garmin also released a new adventure smartwatch this week, the Enduro. The new watch is a superior option for runners and sells at a higher price point than its Fenix 6 Pro smartwatches.
“In a year filled with unimaginable challenges, Garmin delivered record revenue and profits,” said Cliff Pemble, president, and Garmin CEO. “Strong demand for active lifestyle products fueled our growth, and we expect these trends to continue into 2021. I am very proud of what we have accomplished in 2020 and look forward to the opportunities and challenges of the new year.”
Year over year, Garmin also increased its R&D spend by 16%.
The company provided additional guidance for 2021 and estimated a ~10% revenue growth in both the Fitness and Outdoor segments.
In Summary, Garmin has been able to capitalize successfully on the growth and popularity of wearables and Smartwatches. Acquisition of FirstBeat Analytics is now allowing Garmin to provide new and innovative services on its products. The company also continues to explore new areas for acquisitions and growth, as evidenced by recent acquisitions.
Source: Garmin Investor Relations