The pandemic reinforced some new consumer trends and accelerated innovation in many businesses, and Garmin (NASDAQ: GRMN) is taking advantage. Its business rebounded quickly from a second-quarter sales slump amid the pandemic. That recovery came swiftly as interest in outdoor activities and exercise emerged as popular trends. Garmin also introduced products that took advantage of trends like the growing popularity of boating and recreational vehicles (RVs). Image source: Getty Images. A transformed product portfolio Garmin has four growing product segments that made up almost 90% of net sales in the first nine months of 2020. That’s up from about 70% four years ago. Fitness, outdoor, marine, and aviation have been growth catalysts since the automotive segment and its GPS personal navigation devices began to decline. The outperformance of the four nonautomotive segments have driven strong sales gains over the past several years. GRMN Revenue (TTM) data by YCharts. TTM = trailing 12 moths. Management expects revenue to hit $4 billion for the full year 2020. Protection in a market crash The business also generates high margins. Its estimated gross profit margin for 2020 is 59%. For perspective, that compares to Apple ‘s gross margins of 38%. That allows Garmin to continue to invest and grow the business as it brings in plenty of cash flow. It generated $236 million in free cash flow in the third quarter, and that was after increasing research and development spending by 18%. That cash more than covers the $117 million it paid to […]