Garmin just posted one of its strongest quarters in years. The company says it saw “strength in many product categories… including wearables, which were a significant contributor to consolidated growth,” pointing to a surge in demand for its smartwatches and fitness devices.
Garmin’s fitness segment grew 42% year-on-year, driven by what it calls “strong demand for advanced wearables,” with strong interest across its entire range, from entry-level running watches through to high-end multisport watches.
"Advanced wearables" are driving everything
Garmin’s definition of “advanced wearables” is broader than you might expect and includes most of its core watch lineup, covering devices with GPS, app support and deeper training insights.
The company says growth is driven by higher unit volumes and market share gains, suggesting Garmin is selling more watches overall, not just newer models.
Garmin appears increasingly comfortable playing in the same space as mainstream smartwatches, without losing its edge in fitness and outdoor performance.
Teasing the new flagship
The outdoor segment dipped slightly this quarter, largely because last year’s numbers were boosted by the launch of the Instinct 3. At the same time, the company noted that its Fenix line still performed well despite those tough comparisons, potentially thanks to permanent price cuts.
More importantly, Garmin expects stronger performance later in the year, driven by the timing of upcoming product launches.
Garmin tends to hold back in the first half of the year before rolling out bigger updates later on, and with demand for premium wearables clearly intact, the conditions look right for the new Fenix 9 to drop sometime later this year.
A world beyond smartwatches
“We are planning to launch even more new products throughout the year, including some that represent new categories for Garmin,” the company said.
That’s a big statement, especially with rumours about products such as the Cirqa band circling online.
“Customers want choices when it comes to devices, especially those that they wear… we see this as expanded opportunity for everyone,” the company added, suggesting it’s not overly concerned about new competitors entering the wearable space.
The brand continues to push connected features, including messaging, safety tools and satellite communication (a.k.a. inReach), across more devices.
As the company puts it, “the obvious point of those devices with the connectivity hardware is to use the services… I would expect to see more of those kinds of products coming to market in the future.”
That opens the door to entirely new types of wearables: not just watches, but potentially screenless trackers, smart rings or other connected devices designed to plug into Garmin’s growing ecosystem.
The bigger picture
Garmin’s latest results show a company building from a position of strength.
Demand for its watches is rising across the board, its premium models continue to hold their appeal, and its ecosystem is expanding into messaging, health and connectivity.
Plus, the company says it serves customers who prioritise health and active lifestyles, a group it believes is “probably a little more resilient than what the average reporting out there is.”
That gives Garmin room to push further, both with high-end devices like the next Fenix and with entirely new product categories.
Head over to Garmin for more info.
