Why Garmin Shares Tumbled This Week
GPS device maker Garmin (NYSE: GRMN) has had a surge of interest in its products over the past several years. But after six straight years of revenue growth, 2022 might mark the end of that streak. After the company adjusted its full-year guidance, Garmin shares are dropping this week. As of Friday morning, they were down 5.6% for the week, according to data provided by S&P Global Market Intelligence.
The pandemic accelerated already-growing sales of Garmin products as consumers embraced more outdoor activities including exercise, camping, and boating. But now the company is seeing results in its fitness category slowing, causing it to now expect flat year-over-year sales in 2022. The previous prediction was for a 10% increase in revenue this year.
Additionally, while demand remains strong in its marine segment, the company said sales dropped because of supply chain constraints limiting the ability to meet that demand. This week's drop brings the year-to-date decline to nearly 30% for Garmin shares.
Source Fool.com
