US tech giant Garmin has reported that cycling sales have declined over the second quarter of 2022, as the market normalises following the Covid-19 fitness boom.
Revenues from the Garmin fitness segment, which includes wearable tech and cycling products, declined by 34% despite a number of significant product launches.
In its latest trading report, published on 27th July, Garmin announced revenues were down across all categories, led by advanced wearables and cycling products.
President and chief executive of Garmin, Cliff Pemble, said: “Revenue declined during the second quarter driven primarily by underperformance in our fitness segment.
“Markets continue to normalise following two years of pandemic-driven growth, and we also face additional headwinds including the relentless strengthening of the US Dollar, high inflation, and rising interest rates. While we must adjust expectations, we believe that our line-up of innovative products and strategy of diversification will allow us to remain strong in an evolving economic environment.”
During the quarter, Garmin launched a renewed line of Forerunner GPS watches, including the Forerunner 955 with solar charging capability, along with the new Edge 1040 Solar cycling computer.
Garmin’s second quarter saw revenue of $1.24 billion (£1.03 billion), a 6% decrease compared to the pandemic-driven quarter in 2021.
Operating income sat at $293 million (£244 million), a 21% decrease on the prior year.
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A statement from Garmin said: “Revenue from the fitness segment decreased 34% in the second quarter with declines across all categories led by our advanced wearables and cycling products.
“Gross and operating margins were 49% and 9% in the quarter, respectively, resulting in $23 million of operating income. During the quarter, we launched our refreshed line of Forerunners including the Forerunner 955 with solar charging capability which provides up to 20 days of battery life in smartwatch mode, premium training features and a new touchscreen interface.
“We also launched the Forerunner 255 adding triathlon support and recovery insights to the series.
“Also, during the quarter, we released the Edge 1040 Solar cycling computer featuring solar charging and multi-band GNSS technology, providing more accurate positioning in challenging ride environments such as dense urban areas or under deep tree cover.”