With the past quarter of the financial year coming to an end, Garmin has announced US$778 million in profit, with the fitness sector seeing the most growth at 79 percent.
All sectors of the Garmin lineup – except for the outdoor range – showed growth for the beginning of 2014. The lackluster launch of the VIRB Action camera is partially to blame for the poor outdoor range performance, with Garmin sighting, “inventory reserves and advertising expenses” for the slight decline.
According to a press release from the GPS giant, “The fitness segment posted revenue growth of 79 percent in the quarter on the strength of vívofit, our first activity tracker, and recent biking and running product introductions including the Edge 1000 and the Forerunner15, 220 and 620.”
The release went on to say, “While much has been said about these markets being crowded, we are committed to exploration, development and delivery of innovation that customers desire across our broad range of fitness and wellness products. With this commitment, we believe we can maintain our leadership and deliver ongoing revenue growth in this segment.”
However it’s not just Garmin seeing financial growth from the cycling industry, according to Bicycle Retailer both Mavic and Shimano posted sales growth figures of 19 and 10 percent respectively earlier this year.
Despite the massive growth in the fitness sector, especially in cycling, Garmin will be pulling its title sponsorship of the WorldTour team at the end of the 2014 season, moving to a smaller sponsorship role.