Strong demand for smartwatches helped drive a record year for Garmin in 2024, with the company witnessing “remarkable growth”, according to new financial statements.
Garmin recorded its best ever consolidated revenue of $6.3 billion (£5 billion) last year, a 20% increase on 2023’s results. After sales, administrative, and tax costs, this worked out to a net income of $1.4 billion (£1.1 billion).
Commenting on the results in a report released on Wednesday, CEO Cliff Pemble said he was “very proud” of the company’s success.
“2024 was a year of remarkable growth and achievement for Garmin, 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 from our robust product lineup and have many product launches planned during the year.”
Among Garmin’s biggest releases in 2024 were the updated Edge 1050 cycling computer, the Fenix 8 smartwatch, and the smaller Lily 2 Active smartwatch, the company’s smallest ever GPS wearable.
The report highlighted in particular a “strong demand” for wearables – smartwatches – in the market. Garmin’s fitness sector, to which its cycling products and smartwatches belong, witnessed the most growth, with revenues increasing by 31% year-on-year in the three months to Christmas.
The company also sells outdoor, aviation, marine, and automotive products.
A publicly listed company, Garmin’s stock price surged by more than 12% after it released its earnings report on Wednesday. The stock price is now at an all-time high since the company went public in 2000.
Garmin's growth – although not reliant on cycling products alone – stands out against a backdrop of lingering post-pandemic downturn in the bike industry.
Late last year, UK retail chain Halfords cited a “decline in cycling” when it posted a 25% year-on-year fall in profits.
“In cycling, whilst we grew market share, the market itself was very challenging,” wrote Halfords CFO Jo Hartley in November. “Cycling market volumes, as reported by the Bicycle Association, are now c.30% below pre-covid levels.”
The industry struggled worldwide in the immediate aftermath of the pandemic, with a widespread slump in demand leading to high inventories and overstocking. Ensuing cut-price sales then led to losses for many companies.
