Leading US tech brand Garmin has reported a 71% drop in operating profit across its cycling and fitness division in 2022 as the pandemic bubble burst, the company’s annual report said.
Published on Wednesday, the company’s final report for the 2022 fiscal year shows that operating income was $105m (£87m) from its fitness range, which includes GPS cycling computers, watches and indoor turbo trainers.
This is a 71% year-on-year decrease compared with 2021, when the operating income for the same division was $359m (£298m). Revenue for the fitness division fell less dramatically by 28% to $1.1bn (£910m) in 2022 down from $1.5bn (£1.24bn) in 2021.
The 2022 income was also drastically lower than pre-pandemic levels. In 2019, Garmin reported operating profit of $191m (£158m) within its fitness vertical, a small increase on the previous year, which came in at $181m (£150m).
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The cycling computer giant becomes the latest in a string of companies that have struggled with the fall in the cycling market following a massive boom during the pandemic. Then, when people were deprived of their ability to embrace a lot of social activities, they invested in their fitness and hobbies but that has slowed in 2022.
Garmin competitor Wahoo Fitness has struggled with liquidity in recent months, Strava has upped its prices and in the UK a string of cycling kit companies have closed their doors.Speaking to investors about the company’s cycling business, Cliff Pemble, Garmin president and CEO, said: “In fitness we saw the indoor cycling area and […]
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