Revenue declines in America and Europe, and strength from Asia helped push Garmin’s third quarter revenues down 11.4% to $692.4 million, but one-time income tax expenses helped boost net income 29.9% to $279.6 million for the period. Operating income fell 29.7% to $166.6 million in the third quarter.
GRMN experienced declines in North America, down 18% to $413 million, as well as Europe, down 9% to $216 million. However, the trend was offset by a spike in revenue in the Asia segment, up 54% to $63 million.
Outdoor/Fitness segment revenue rose 8.9% to $144.0 million and gross margins improved 290 basis points to 65.6% of segment revenues. Operating income grew 27.6% to $68.1 million.
Marine segment revenue inched up 1.5% to $46.1 million and gross margins improved 650 basis points to 60.2% of segment revenues. Operating income grew 32.5% to $15.6 million.
Dr. Min Kao, Garmin chairman and CEO said, “The fitness business continues to have significant momentum as we approach the holiday season and we are anticipating many promotions focused on this category. To further enhance their position in the cycling market, GRMN recently acquired MetriGear, which Koa said highlights their goal to “offer a broad portfolio of products for both the competitive athlete and the recreational fitness participant.”
