Garmin GRMN recently unveiled the ultimate GPS bike computer Edge 1040 Solar to expand its fitness offerings, which in turn, will strengthen the fitness segment.
Garmin’s fitness segment has been performing poorly so far in 2022 due to declining sales of cycling products, reflecting the normalization of demand from the pandemic-induced demand hike. Notably, the segment generated sales of $220.9 million in the first quarter of 2022, down 28% from the year-ago quarter’s level.
GRMN expects its fitness segment to perform moderately in the second half of this year as a result of post-pandemic normalization and benefits from product releases.
Apart from softness in the fitness segment, Garmin is facing the negative impacts of coronavirus-induced supply-chain constraints, high freight costs, increased operating expenses, unfavorable forex and the ongoing Russia-Ukraine war.
Shares of Garmin have been down 24.4% in the year-to-date period, lagging the Computer and Technology sector’s decline of 24.2%