Fitness financials: Garmin up on fitness; plus Adidas 1Q earnings and Cybex’s lawsuit update

Garmin posted higher first-quarter 2011 revenue and profit boosted by strong revenue growth from its fitness segment -- up 30 percent. Plus, Adidas earnings up and Cybex gets some leeway on paying a $66 million lawsuit.
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Garmin Ltd. (Nasdaq:GRMN) reported strong first-quarter revenue and profit growth, led by growth from its fitness segment.

The satellite navigation company reported revenue of $508 million for the first quarter 2011 – up 18 percent from the same period a year ago. Its quarterly net income rose to $95.5 million, or $0.49 per diluted share, versus a net income of $37.3 million, or $0.19 per diluted share, a year ago.

Garmin officials said the company saw its strongest revenue growth from its fitness segment – up 30 percent to $56 million.

“We experienced strong demand for our high-end cycling products, particularly in Europe, and we continue to focus on leadership in the GPS running watch category with the release of the Forerunner 610,” company officials said in the earnings release. “We anticipate strong demand for this product based upon the enthusiasm we saw at the Boston Marathon in April.”

This was the first time Garmin split fitness from its outdoor segment, which showed weaker growth at 12 percent to $67 million. Garmin’s marine segment grew 24 percent to $51 million, its automotive/mobile segment rose 20 percent to $265 million and its aviation segment rose 5 percent to $69 million.

Adidas 1Q revenue, profit up; plans increased marketing for Reebok in fitness

Adidas Group reported higher revenue and profit for the first quarter and increased its guidance moving ahead.

The Germany-based sports, outdoor and fitness company reported first-quarter revenue of EUR 3.273 billion (USD $4.78 billion) in the first quarter of 2011 – up 22 percent in euro, and up 18 percent on a currency-neutral basis, from a year ago.

Adidas’ net income rose 25 percent to EUR 209 million (USD $305 million).

The strong performance led Adidas to increase full-year 2011 revenue projections to high-single-digit growth on a currency-neutral basis – up from the previous expectation of mid- to high-single-digit growth.

Coming off the 2010 FIFA World Cup, Adidas said it plans for a decrease in operating expenses in 2011, such as sales and marketing, although it plans to boost marketing investments to support its Reebok brand growth strategy in the men’s and women’s fitness category. Click here to see a Feb. 23 SNEWS story about new Reebok fitness accessories seen at the ispo show in Germany.

(Conversion of euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of May 5, 2011.)



Cybex gets more time with lawsuit

Cybex International Inc. (Nasdaq:CYBI) gained a temporary stay of enforcement of a $66 million lawsuit against it, company officials said during a conference call May 2.

The stay temporarily blocks the plaintiff, Natalie Barnhard, from collecting the reward and lifts the requirement of Cybex posting a bond of $66 million for the case. Cybex is requesting the bond be reduced to $10 million as it appeals the lawsuit amount.

For background on the case and Cybex’s latest quarterly earnings April 22, click here for previous SNEWS coverage.

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