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Earnings Call Takeaways: Garmin Reports on Fitness, Cycling, Outdoors

Earnings Call Takeaways: Garmin Reports on Fitness, Cycling, Outdoors

Garmin expects full year 2022 revenue of $5.5 billion, an increase of approximately 10% over 2021

Garmin released its fourth-quarter and fiscal-year 2021 results, stating that it is encouraged by the new year’s opportunities, which include a lineup of recently introduced and upcoming products that will be available throughout 2022.

“2021 was another remarkable year as demand for our products led to strong double digit annual revenue growth in each of our five segments,” said Clifton Pemble, President, CEO & Director of Garmin. “We are entering 2022 with a great lineup of recently introduced products and have more exciting product introductions planned throughout the year. I am very proud of what we have accomplished in 2021 and look forward to the opportunities and challenges of the new year,” says Pemble.

Garmin expects consolidated revenue to increase by approximately 10% to $5.5 billion. 

Here are the key takeaways from fitness, cycling, and the outdoors:

How business & markets are evolving & normalizing

Garmin stated on the earnings call that the pandemic drove demand in certain product categories and that it is beginning to “normalize from peak levels.”

“This will create additional dynamics to consider for the coming year,” says Pemble. “The nuances of individual categories are not a major concern for us. Rather, it’s our strategic focus on diversification that brings many opportunities for growth, which is the basis for our outlook for 2022.”

Fitness segment

Garmin reports that revenue increased 16% for the year, noting strong demand for advanced wearables and cycling products.

In the earnings call, Garmin says fitness revenue was flat in the fourth quarter compared to the previous year, as growth in wearables was offset by lower revenue in cycling.

“Product differentiation is a key factor in our ability to compete in the market for wearables,” says Garmin’s CEO. “Lily is a great example, with its small form factor, appealing design and unique display that hides when not in use. Customers buying Lily are overwhelmingly new to the Garmin brand, demonstrating the power of differentiation to attract new customers.”

Garmin also announced multi-year sponsorship agreements at high school and collegiate levels and released its 2021 Connect Fitness Report. The report showed double digit growth in nearly every activity category.


According to Garmin, the cycling category has more than doubled in the last two years, owing to the pandemic and increased demand for both indoor and outdoor cycling products. While the market is normalizing, Garmin predicts that fitness revenue will be “flat year on year as growth in wearables is offset by lower revenue in cycling products.”

Garmin anticipates a return to growth in the second half of the year as the cycling market stabilizes and new products are introduced.

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The great outdoors


Garmin reports that full year revenue increased 14%, with growth across multiple categories, driven by strong demand for adventure watches.

Garmin says outdoor revenue decreased 8% in the fourth quarter, due to component constraints in traditional handhelds and dog product categories. “We ended the year with unusually high back orders, which were pushed into the new year,” says Premple. 

With new offerings, Garmin says it anticipates outdoor revenue to increase approximately 20% for the year.

Looking ahead


Garmin noted it announced updates to its fenix adventure watch series, including a new design and touchscreen display and epix, which features an AMOLED touchscreen display and battery life of over two weeks.

“Last week, we announced the all-new Instinct 2 series in 2 sizes, which will expand the addressable market for this unique adventure watch. Select Instinct 2 models with solar technology can operate indefinitely using only the power of the sun, which is a breakthrough achievement in the smartwatch market. Demand for these new products has been very strong, and we expect them to be a significant catalyst for growth in the coming year,” says Garmin’s CEO.

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