Garmin Ltd. reported that revenue at its Outdoor Segment rose 11 percent to $105 million during the third quarter ended Sept. 29, while revenues at Fitness segment declined 6 percent to $65 million.
Total revenues across the company’s five segments, which also include Automotive/Mobile, Aviation and Marine, reached $380 million in the Americas, compared to $352 million, up 8 percent. EMEA revenue declined 13 percent to $225 million. Asia Pacific revenue was $67 million, up 19 percent.
In the Outdoor segment growth was again driven by Garmin’s golf line-up, dog tracking and training, and the recently introduced fçnix. During the quarter, Garmin introduced the first collaborative product following the Tri-Tronics acquisition, the Alpha GPS Track and Train System. The unit combines robust GPS tracking from Garmin and proven electronic correction from Tri-Tronics.
In the Fitness segment growth in cycling and multi-sport were offset by a slowdown in running watches. Garmin again faced a difficult year-over-year comparison due to 2011 promotional activity on the Forerunner 305 and the strong early shipments of the Forerunner 610. With the launch of the Forerunner 10, Garmin expects to regain market share in the value price category.
Early response to the Forerunner 10 has been positive with great reviews and strong pre-orders. Garmin remains confident that the fitness market will continue to offer growth opportunities in 2013 and beyond.
Gross margin for the overall business was 53 percent in the third quarter improving from 52 percent in the prior year with all segments posting improved or steady gross margins. Gross profit increased 4 percent to $359 million. The outdoor segment made the largest contribution to the gross profit improvement, posting a 69 percent gross margin and over $72 million in gross profit. We also had strong gross margin expansion in fitness, aviation and marine where product mix has shifted toward high margin business in the current quarter.
