(Reuters) -Garmin posted its slowest revenue growth in seven quarters and missed profit estimates on sluggish demand for its navigation devices and smartwatches, sending shares of the company down more than 11.5% on Wednesday.
It also joined a chorus of global companies in warning about the economic uncertainty sparked by sweeping U.S. tariffs, which have already impacted companies across sectors and countries.
Garmin has manufacturing operations in Taiwan, the U.S., the Netherlands, Poland and China. That could make it vulnerable to rising Sino-U.S. tensions as Beijing and Washington escalate tit-for-tat tariffs that threaten to roil supply chains.
Still, the company, which competes with smartwatches from Apple and South Korea’s Samsung, raised its revenue forecast for the year to $6.85 billion from $6.80 billion previously. That was higher than analysts’ average estimate of $6.82 billion, according to data compiled by LSEG.
In the quarter to March 29, sales at outdoor and fitness divisions – Garmin’s two biggest revenue generators – rose 20% and 12%, respectively, slower than the 29% and 31% growth seen in the previous three months.
Overall, sales rose 11% to $1.54 billion in the quarter ended March 29, above analysts’ estimate of $1.51 billion.
But adjusted profit of $1.61 per share missed analysts’ estimate of $1.67, as total expenses jumped 9.5%.
The company also lowered its forecast for annual margin to 58.5% from 58.7%.
(Reporting by Meghana Khare in Bengaluru; Editing by Shinjini Ganguli)
