Garmin edge 1040 Garmin, one of the leading manufacturers of GPS computers for sports tracking and cycling, has reported a 71 percent fall in operating profit across its cycling and fitness division in 2022, which the US tech brand’s president says is a result of the ‘normalisation’ of the cycling industry in the wake of the Covid-19 pandemic.
The company’s final report for the 2022 fiscal year, published on Wednesday (link is external) , revealed that the operating income for Garmin’s fitness section, which includes it bike computers, smart watches, and Tacx indoor trainers, was $105m (£87m) – a drastic 71 percent drop compared to the company’s 2021 figures, which saw the same division secure an operating profit of $359m (£298m).
The 2022 profit also falls far below Garmin’s pre-pandemic figures, with the brand reporting an operating profit of $191m (£158m) in 2019.
Revenue for the fitness division also fell by 28 percent from $1.5 billion (£1.24 billion) to $1.1 billion (£910m) for 2022.
The outlook was somewhat brighter for other parts of Garmin’s business, which also includes products for motor vehicles and boats. With those sectors performing well in 2022, the company managed to report just an 11 overall percent fall in pre-tax profit to $1.06billion (£880m), while revenue fell just 2.5 percent to $4.9 billion (£4 billion).
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Garmin’s president and CEO, Cliff Pemble, told investors this week that the current state of the company’s cycling business was a direct and […]
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