The fitness segment led record FY24 growth, with wearables driving a 32 percent sales surge.
Garmin delivered record-breaking Q4 and FY24 results, with its fitness segment leading revenue and profit growth. As demand for wearables and performance-tracking devices surged, the company’s fitness division reported double-digit gains, supporting an overall 20 percent annual revenue increase to $6.3 billion.
Fitness outperforms expectations
The Swiss company’s fitness revenue grew 31 percent in Q4 to $539.3 million, driven by strong demand for wearables. The segment’s gross margin reached 57 percent while operating income soared 72 percent to $159.2 million. For the full year, fitness revenue rose 32 percent to $1.77 billion, with operating income doubling to $482.7 million.
The company launched Lily 2 Active, its smallest GPS smartwatch, during Q4, reflecting a broader strategy to appeal to fitness and wellness-conscious consumers. “2024 was a year of remarkable growth and achievement for Garmin,” said Cliff Pemble, President and CEO. “We are entering 2025 with strong momentum and an exciting product lineup.”
Outdoor and marine segments maintain strength
Garmin’s outdoor segment, fueled by adventure watches and GPS devices, reported 29 percent revenue growth in Q4 to $629.4 million, with operating income up 53 percent to $251.3 million. Annual outdoor revenue totaled $1.96 billion, up 16 percent year-over-year.
The marine segment, surpassing the $1 billion revenue mark, posted a 5 percent Q4 growth to $251.3 million, with operating income at $50.6 million. Full-year marine revenue rose 17 percent to $1.07 billion.
Outlook
Garmin projects 8 percent revenue growth in FY25, reaching $6.8 billion, with a 25 percent operating margin. The company also proposed a 20 percent dividend increase.
