Measuring up against strong performances in the first quarter of 2012, Garmin's sales fell by 1.3 percent to $76.2 million in the outdoor segment and rose by only 1.7 percent in the fitness segment to $72.4 million in the 13-week period ended last March 30, and they. Gross margins increased to 62.1 percent in fitness and declined to 58.4 percent in outdoor. Operating earnings declined in both segments, down by 3.7 percent in fitness to $19.9 million and by 16.7 percent in outdoor to $21.6 million. Despite the slight decline in the outdoor segment during the generally weak first quarter, the company is forecasting major gains in the second quarter through the launch of new products for cycling and golf. Sales went down more steeply in other product categories, leading Garmin to post a 4.4 percent drop in total revenues to $532.0 million for the period, but despite an 11.5 percent in operating income to $79.9 million, the company booked 2.1 percent better net earnings of $88.7 million.

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