(Reuters) – Smartwatch and navigation equipment maker Garmin Ltd topped first-quarter revenue estimates on Wednesday, boosted by strong growth in its businesses catering to the aviation and marine industries.
Garmin’s diversified business is helping the company navigate a downturn in spending from recession-wary consumers, which pushed down sales at its outdoor unit – the biggest and home to its adventure watches – by 27%.
“2023 is off to a good start with four of our five segments posting double-digit revenue growth, driven by new product introductions and solid demand trends,” CEO Cliff Pemble said.
Garmin launched the Forerunner 265 and Forerunner 965, its first running watches with a bright AMOLED display, in the first quarter to take on Apple Inc’s Watch Ultra and Samsung Electronics’ Galaxy Watch 5 Pro.
The launch of the products helped its fitness business post an 11% rise in sales, while the aviation and marine units reported increases of 22% and 10%, respectively.
Total revenue for the quarter ended April 1 was $1.15 billion, compared with analysts’ estimates of $1.08 billion, according to Refinitiv.
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Adjusted profit of $1.02 per share, however, fell short of expectations of $1.06 as the company posted a 5% rise in total expenses.
Garmin maintained its full-year revenue and adjusted profit forecast.
Its shares were untraded before the bell. They have risen 5.3% so far in 2023, after declining by more than a third last year.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Krishna Chandra Eluri)