Garmin’s fitness device business has surpassed its traditional auto/personal navigation device business for the first time.
The Olathe-based manufacturer reported the leadership shift came during the fourth quarter of last year. Garmin on Wednesday released its financial results for the quarter for the full year.
Revenues from fitness, which includes running watches and activity trackers, reached nearly $274.1 million in the final three months of 2016 thanks to a 20 percent increase from a year ago. Sales in Garmin’s automotive business segment, which includes personal navigation devices and in-dash devices, were $226.6 million in the quarter, down 17 percent from a year ago.
A company spokeswoman said Thursday that Garmin expects fitness sales will continue to exceed sales of its automotive segment.
Garmin’s auto segment has been shrinking for years with the decline in sales of its iconic personal navigation devices. The company continues to add to its automotive business, announcing Wednesday that it has become a tier-one supplier of infotainment computing modules to BMW AG.
For the quarter, Garmin’s profits increased 3.2 percent to $136.6 million, or 72 cents a share. A year ago, the company earned $132.4 million, or 70 cents a share. Garmin’s report noted that the recent quarter covered 14 weeks, compared with 13 weeks in the year ago quarter that had ended Dec. 26, 2015.
Total revenues were $860.8 million, up 10 percent from $781.4 million a year earlier. Garmin reported double-digit revenue increases in each of its other three segments: outdoor, marine and aviation.
For all of 2016, which covered 53 weeks, Garmin revenues totaled $3.02 billion, up 7 percent from the 2015 fiscal year that covered 52 weeks.
The company’s report said it expected growth in its outdoor, fitness, marine and aviation businesses this year to be offset by declines in its automotive segment revenues.