Sturdy demand for smartwatches helped drive a document yr for Garmin in 2024, with the corporate witnessing “exceptional development”, in line with new monetary statements.
Garmin recorded its greatest ever consolidated income of $6.3 billion (£5 billion) final yr, a 20% enhance on 2023’s outcomes. After gross sales, administrative, and tax prices, this labored out to a web revenue of $1.4 billion (£1.1 billion).
Commenting on the ends in a report launched on Wednesday, CEO Cliff Pemble stated he was “very proud” of the corporate’s success.
“2024 was a yr of exceptional development and achievement for Garmin, leading to document full-year consolidated income and document full-year income in all 5 of our segments, in addition to document full-year consolidated working revenue,” Pemble stated.
“We’re getting into 2025 with continued robust momentum from our strong product lineup and have many product launches deliberate in the course of the yr.”
Amongst Garmin’s greatest releases in 2024 have been the up to date Edge 1050 biking pc, the Fenix 8 smartwatch, and the smaller Lily 2 Energetic smartwatch, the corporate’s smallest ever GPS wearable.
The report highlighted specifically a “robust demand” for wearables – smartwatches – out there. Garmin’s health sector, to which its biking merchandise and smartwatches belong, witnessed essentially the most development, with revenues rising by 31% year-on-year within the three months to Christmas.
The corporate additionally sells out of doors, aviation, marine, and automotive merchandise.
A publicly listed firm, Garmin’s inventory value surged by greater than 12% after it launched its earnings report on Wednesday. The inventory value is now at an all-time excessive because the firm went public in 2000.
Garmin’s development – though not reliant on biking merchandise alone – stands out towards a backdrop of lingering post-pandemic downturn within the bike business.
Late final yr, UK retail chain Halfords cited a “decline in biking” when it posted a 25% year-on-year fall in income.
“In biking, while we grew market share, the market itself was very difficult,” wrote Halfords CFO Jo Hartley in November. “Biking market volumes, as reported by the Bicycle Affiliation, are actually c.30% beneath pre-covid ranges.”
The business struggled worldwide within the fast aftermath of the pandemic, with a widespread stoop in demand resulting in excessive inventories and overstocking. Ensuing cut-price gross sales then led to losses for a lot of corporations.
