Garmin's revenues from its outdoor segment increased by 24 percent to $100 million in the second quarter of 2012. Those of the fitness segment increased by 5 percent to $82 million, compared against a strong performance in 2011.
The company's overall sales increase amounted to 7 percent. Turnover reached $718 million including the revenues from its other segments: automotive/mobile (+8%), aviation (+4%), and marine (-14%). The year-to-year decline in the marine segment was primarily attributable to a significant global slowdown in marine activity, which the company expects to continue throughout 2012.
In the outdoor segment, growth was driven by golf, dog tracking and training, and the recently refreshed eTrex series. During the quarter, the company introduced the F?nix, a new GPS watch for hikers.
Growth in the fitness segment was driven by promotional activity on the Forerunner 305 watch and the launch of the Forerunner 610, as well as good sales of the Forerunner 910XT. In late June, the company also introduced the Garmin Swim, a training watch for swimmers that has been well-received. Growth rates in the segment are expected to improve in the second half of 2012, following the launch of new products for the holiday season.
The company's operating margin increased to 28 percent in the quarter, compared with 20 percent in the second quarter of 2011.
