By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Schaffhausen, Switzerland — Garmin reported slumping net sales for its fiscal second quarter, ended June 29.
Total revenue was $697 million in the quarter, down 3 percent from $718 million in the prior-year period. Broken out by category, sales were up 6 percent in outdoor ($106.9 million vs. the prior year’s $100.5 million) but down 12 percent in automotive/mobile ($344.7 million vs. $392.1 million).
Sales were up 16 percent in aviation, 3 percent in fitness and 7 percent in marine.
In a statement, Cliff Pemble, Garmin president and CEO, tempered the results by saying segments experienced higher-than-expected revenue, but noted, “We also anticipate that declines in the PND market will continue to be a significant headwind. Third quarter will be particularly challenging as we compare against a period of strong prior year sell-in driven by the timing of new product introductions and end-of-life promotions.”
Garmin said it expects global PND devices to decline by 20 percent.
Net income was $261.2 million for the quarter vs. $272.8 million for the prior-year period. Operating income was $169.9 million vs. $204 million.
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