Garmin Sales and Earnings Up
Garmin dropped some good news and some not so good news this week. The Good news was that their earnings are still up despite the poor economy, and lackluster sales on a whole range of things at the stores these days. The bad news is that lowered expectations for the year citing macroeconomic issues.
The big winners were in a few segments:
- Auto Revenue - up 24%
- Outdoor/Fitness Revenue up 54% on the back of a successful Forerunner 405 and Edge 605/705 launch
- North American Revenue up 27%
- European Revenue up 19%
- From CEO Min Kao:
"Despite the challenging macro economic conditions, Garmin experienced another quarter of growth in 2008 and continues to demonstrate our solid leadership position in the industry. Our strength in the automotive/mobile segment in the face of a slowing economy demonstrated that our products continue to be well-positioned to take advantage of the ongoing demand for portable navigation devices. The latest nüvi 2x5 products delivered during the second quarter provide yet more features for cost-conscious consumers including picture navigation and compatibility with MSN Direct's real time content service. We also delivered the high-end nüvi 800 series in the second quarter which offers industry-leading speech recognition in the personal navigation sector. Our nüvi product offerings continue to support our strategy of extensive market segmentation, drawing in customers with compelling, competitive features, and useful content integrated into easy-to-use products at many attractive price points. We believe this approach will continue to garner growing market share and drive strong results throughout the remainder of 2008. Although we continue to earn industry-leading market share, the sector is not growing as rapidly as earlier anticipated and consumers appear to be more cost-conscious than ever; therefore, we will be lowering our full year revenue growth expectations."
Full Press Release can be found here at the Garmin Site
Read More in: Earnings Announcements | Garmin GPS News
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Posted by Scott Martin at August 2, 2008 12:39 PM