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Top area public company Garmin surges past $4B in annual revenue for first time

By Madison Parry

Garmin Ltd. reeled in record earnings in 2020 despite a year of setbacks for industries and companies worldwide. Total revenue for the year pushed near $4.2 billion, an 11 percent increase, as sales on its fitness and outdoor products gained popularity during months of lockdowns.

One of the Kansas City area’s top public companies experienced a record boost in annual earnings during COVID-19 lockdowns in 2020.

Image courtesy of Garmin Ltd.

Garmin Ltd. total revenue climbed to an impressive high near $4.2 billion by the end of 2020, an 11 percent increase from the year before.

In the fourth quarter alone, the American multinational technology company reported a total revenue of $1.35 billion, a 23 percent increase over the prior year quarter. This growth was led by increased interest in the marine, fitness and outdoor segments.

A widespread change in pace and lifestyle habits tied to COVID-19 are credited with higher sales for Garmin’s fitness and outdoor products.

Continuing work-from-home policies that have stretched into 2021 have put a focus on health-related activities for millions. Most notably, Garmin saw an upward drive in Garmin smartwatch purchases, technology centered on physical activities that require no interaction such as running, bicycling, hiking and more.

Products in Garmin’s marine sector in particular saw 150 percent demand higher than the company anticipated.

Highlights for fiscal year 2020 noted in the Q4 report show last year was the fifth consecutive year of revenue and operating income growth. Garmin saw an operating margin of 25.2 percent, consistent with 2019, as well as record operating income of $1.05 billion, increasing 11 percent over the prior year.