Garmin’s earnings get boost, despite slowing sales in fitness and automobile devices

Growth in sales of Garmin’s outdoor, marine and aviation products offset slowing sales in its fitness and automobile segments during the first quarter of 2017.

Garmin posted net sales of $638.5 million for the first quarter of 2017, a 2 percent improvement over earnings from the same period a year ago.

The navigational device manufacturer, which has its corporate headquarters in Olathe, was buoyed by double-digit growth in its marine, outdoor and aviation products. Fitness and automobile devices dropped off from the first quarter pace a year ago.

Marine products had sales of $104.4 million for the quarter, a 26 percent increase over a year ago. Outdoor and aviation products posted 20 percent and 16 percent sales increases, respectively.

Auto devices had $157.2 million in sales so far this year, down 19 percent the first quarter last year. Fitness products posted a 3 percent decline in the first quarter from sales a year ago.

Garmin chief executive Cliff Pemble said the market for basic activity trackers — devices consumers wear to count physical activity such as the number of steps taken a day — has matured. Those basic devices do not have global positioning system capability.

“Despite this challenge, we were very pleased with the performance of advanced wearables with GPS capability trackers,” Pemble said on an earnings call Tuesday morning.

Pemble said revenue for non-GPS fitness products and those that are GPS capable is about even for both segments, which doesn’t count cycling products. He said advanced fitness devices are seeing steep growth, even considering competition from the Apple watch.

Garmin’s sales are generally seasonal in nature, and the first quarter is typically a slow period for the company. Sales are expected to pick up in the second quarter.