Strong demand for smartwatches drives company’s success as stock hits all-time high
Garmin has reported a record-breaking year for 2024, buoyed by strong demand for its smartwatches and other products, with the company posting a significant 20% increase in annual revenue.
The company’s consolidated revenue for the year reached an all-time high of $6.3 billion (£5 billion), up from $5.3 billion in 2023. After accounting for operational costs, taxes, and other expenses, Garmin reported a net income of $1.4 billion (£1.1 billion).
CEO Cliff Pemble expressed pride in the company’s performance, describing 2024 as a year of “remarkable growth and achievement.” In a statement, he highlighted Garmin’s record full-year revenue across all five of its business segments, including the notable increase in consolidated operating income.
“2024 was a year of remarkable growth, resulting in record full-year consolidated revenue and record full-year revenue in all five of our segments, as well as record full-year consolidated operating income,” Pemble said. “We are entering 2025 with continued strong momentum, thanks to our robust product lineup and numerous product launches planned for the year.”
Among the key product releases in 2024 were the updated Edge 1050 cycling computer, the Fenix 8 smartwatch, and the compact Lily 2 Active smartwatch, Garmin’s smallest GPS wearable to date.
Garmin’s fitness segment, which includes cycling products and smartwatches, experienced the most significant growth. The company reported a 31% year-on-year revenue increase in the final quarter of the year, coinciding with the busy holiday season.
Aside from its fitness products, Garmin’s diverse portfolio spans outdoor, aviation, marine, and automotive technologies. Despite challenges in the cycling market, the company’s growth was fueled by wearables and other products.
Garmin’s stock price surged by more than 12% following the release of its earnings report, reaching an all-time high since the company went public in 2000.
The company’s performance stands in contrast to the struggles in the global cycling industry, which has seen a post-pandemic decline in demand. For instance, UK retail chain Halfords reported a 25% drop in profits, citing a “decline in cycling” as a key factor.
The bicycle industry, as noted by the Bicycle Association, is currently experiencing volumes around 30% lower than pre-pandemic levels, with many companies facing overstocking and losses due to deep discounting in the aftermath of the pandemic.
Despite these challenges, Garmin’s strategic focus on smartwatches and fitness technology has helped it maintain strong growth and resilience, setting the company up for continued success in 2025.
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