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Garmin (GRMN) Expands Fitness Offerings With Kids' Wearable

·4 min read

Garmin GRMN introduced a children’s fitness watch, the Black Panther — a special edition vivofit jr. 3 — for children.

The wearable features the Black Panther design and the African nation of Wakanda. It also allows kids to avail Marvel Avengers app adventures and participate in competitions.

With this special edition watch, kids can track their sleep, steps and other activities for up to one year, without recharging the battery. Moreover, the watch is swim-friendly to let kids track water activities.

Parents can monitor their child’s daily activities on their smartphones by using the Garmin Jr. app.

With the Black Panther fitness watch, Garmin aims to provide kids with an enhanced health and wellness tracking experience. This is expected to boost the adoption rate of the wearable.

Garmin Ltd. Price and Consensus

Garmin Ltd. Price and Consensus
Garmin Ltd. Price and Consensus

Garmin Ltd. price-consensus-chart | Garmin Ltd. Quote

Growing Wearable Offerings

In addition to the Black Panther watch, Garmin unveiled the Venu Sq 2 and Venu Sq 2 – Music Edition GPS smartwatches. The smartwatches come with all-day health monitoring, fitness and wellbeing features, on-device music storage for phone-free listening and an extended battery life of 11 days.

Last month, GRMN launched the Enduro 2 multisport GPS smartwatch featuring LED flashlight, music, enhanced positioning precision and battery life of up to 150 hours in GPS mode.

In June, Garmin introduced the Forerunner 955 Solar smartwatch, featuring solar charging, longer battery life, multi-satellite system tracking, and health and wellness tracking.

In April 2022, GRMN released the smart fitness tracker, the vivosmart 5, with advanced sleep features and, health and wellbeing monitoring capabilities.

Garmin’s expanding fitness wearable offerings are expected to help it expand its presence in the booming fitness tracker market.

Per a Straits Research report, the underlined market is likely to reach $192 billion by 2030, witnessing a CAGR of 17.5% between 2022 and 2030.

Strengthening Fitness Segment

With the recent launch of the Black Panther watch, Garmin widened its fitness portfolio.

Apart from wearables, in August, Garmin introduced a premium heart rate strap named HRM-Pro Plus to help athletes keep track of pace and distance during indoor runs, thereby improving their performance.

It also released Edge Explore 2 and Edge Explore 2 Power Mount Bundle GPS cycling computers, featuring an improved battery life, and high-contrast maps of popular roads and high-traffic areas to avoid, thus guiding cyclists to take a more convenient option.

The consistent introduction of fitness offerings is expected to help Garmin gain momentum among fitness enthusiasts. This, in turn, will improve its fitness segment’s performance in the days ahead.

However, the segment is currently suffering from weak demand for advanced wearables and cycling products due to the normalization of demand from the pandemic-induced hike. This remains a negative.

It generated sales of $272.1 million in second-quarter 2022, accounting for 21.9% of total sales, which decreased 34% year over year.

Shares of GRMN have been down 34.3% in the year-to-date period, lagging the Computer and Technology sector’s decline of 28.6%.

Zacks Rank & Stocks to Consider

Currently, Garmin carries a Zacks Rank #4 (Sell).

Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks ANET, ASE Technology ASX and Monolithic Power Systems MPWR. While Arista Networks sports a Zacks Rank #1 (Strong Buy), ASE Technology and Monolithic Power Systems carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks has lost 18.4% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.6%.

ASE Technology has lost 28.3% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.

Monolithic Power Systems has lost 13.8% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.

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