Garmin's revenues rose by 11 percent in its outdoor segment to $105 million during the third quarter ended Sept. 29, driven by its golf lineup, dog tracking and training, and a recently introduced watch.
During the quarter, the company also introduced the Alpha GPS Track and Train System, described as the first collaborative product following its acquisition of Tri-Tronics. It combines GPS tracking from Garmin and electronic correction from Tri-Tronics.
Revenues from the company's fitness business slipped by 6 percent to $65 million, the first-ever decline in revenue since fitness started reporting as a separate segment in 2011. The drop was partly attributed to a tough comparison with 2011, when the company had strong sales and some important new product introductions. Growth in cycling and multi-sport was offset by a slowdown in running watches.
With the launch of the Forerunner 10, which has received an initial positive response, the company expects to regain market share in the low-price category.
Total revenues across the company's five segments, which also include Automotive/Mobile, Aviation and Marine, reached $672 million, up by 1 percent from a year earlier. Sales of outdoor products comprised 16 percent of the total revenues.
Operating income increased to $160,062 from $147,334 a year before, but the consolidated net profit went down to $140.3 million from $150.4 million a year earlier.
The company is planning to spend more on advertising in the holiday season, which might cause a slight drag on fourth-quarter profits.