Garmin posted revenues of $722.3 million for the third quarter ended Sept. 24, which represent a 6 percent growth versus the previous year's third quarter. Growth was driven by fitness, outdoor, marine and aviation, which collectively grew by a combined 24 percent, and contributed 70 percent of total revenues. The company's net income of $125.1 million was up from $119.3 million in the previous year's third quarter. The consolidated gross margin expanded to 56.2 percent as compared to 53.3 percent in the prior year quarter.
The fitness segment recorded revenue growth of 32 percent to $189.2 million, driven by wrist heart-rate wearable devices and cycling. The segment's gross margin increased by 1.7 percentage points to 55 percent while operating margin surged from 18.5 to 23.7 percent, resulting in an increase for operating income of 68 percent. During the quarter, Garmin began shipping the Forerunner 35 as well as the vívofit jr, its first wearable and mobile application for kids.
The outdoor segment achieved revenue growth of 28 percent to $141.0 million, primarily driven by wearable devices. In this segment, Garmin launched the fenix Chronos line, a luxury activity watch crafted with premium jeweler's grade materials. The segment's gross margin increased by 2.3 percent on an annualized basis to 62.7 percent, while operating margin improved to 35 percent, resulting in a 32 percent growth in operating income.
Following the better-than-expected third-quarter results, Garmin raised its full-year revenue guidance to $2.95 billion, as compared to a $2.90 billion forecast on July 27 and $2.82 billion forecast on April 27. Best Buy's decision to double its shelf space for Garmin products during the holidays further contributed to the outlook upgrade. The company also lifted its guidance for operating margin and earnings per share.
