Fitbit Inc. topped analysts\u2019 revenue projections on better-than-expected demand for fitness bands, and announced its anticipated smartwatch will debut in time for the holiday shopping season.<\/p>\n
Second-quarter sales were $353.3 million, a decline of 40 percent, but higher than analysts\u2019 average estimate of $341.2 million. Fitbit reported a loss, excluding certain costs, of 8 cents a share, compared with a profit of 12 cents a year earlier. Analysts projected an adjusted loss of 15 cents a share, according to data compiled by Bloomberg.<\/p>\n
The company\u2019s slice of the wearable-device market declined to 12 percent in the first quarter — about half its share a year earlier — as Fitbit struggled to compete against less-expensive products from rivals such as Xiaomi Corp. and more advanced devices such as the Apple Watch.\u00a0The company said it sold 3.4 million devices in the period ended July 1, compared with 5.7 million in the quarter a year earlier.\u00a0Chief Executive Officer James Park said the new smartwatch will drive second-half sales.<\/p>\n
\u201cEverything is riding on the smartwatch,\u201d Joe Wittine, an analyst at Longbow Research, said before the results were released. \u201cIt can\u2019t get here soon enough because it\u2019s a large market and growing substantially. The longer Fitbit sits out this market, the more the market blows by them.\u201d<\/p>\n
Fitbit shares gained 3.6 percent at 5 p.m. after closing Wednesday at $5.07 in New York. The stock has plummeted 90 percent since its high of $51.64 two years ago.<\/p>\n
In addition to rolling out the smartwatch,\u00a0Park is trying to transform Fitbit into a digital-health company that relies less on consumers and more on corporate wellness. The company forecast sales in the current period of $380 million to $400 million.<\/p>\n
Fitbit also raised the low end of its full-year revenue outlook to $1.55 billion to $1.7 billion and slightly narrowed the guidance for its full-year adjusted loss per share to 40 cents to 22 cents.<\/p>\n
\u201cConsumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales,\u201d Park said in a statement.<\/p>\n
Fitbit Inc. topped analysts\u2019 revenue projections on better-than-expected demand for fitness bands, and announced its anticipated smartwatch will debut in time for the holiday shopping season.<\/p>\n","protected":false},"author":341034,"featured_media":201754,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[45082,25235,25977,25157],"class_list":["post-222934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-analysts","tag-fitbit","tag-profits","tag-revenue"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/222934"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=222934"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/222934\/revisions"}],"predecessor-version":[{"id":222938,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/222934\/revisions\/222938"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/201754"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=222934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=222934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=222934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}