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Fitbit pins hopes on smartwatches as sales struggle

Thursday, February 23, 2017 9:14
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Fitness wearables group Fitbit Inc (NYSE:FIT) ended a torrid year on a downbeat note as its latest numbers missed already downgraded market forecasts.

Bad news was expected, Fitbit had earlier warned results would be disappointing due to to poor Black Friday week sales.

There was a loss in the fourth quarter of US$146.3mln, while earnings of 56c ignoring one-offs were slightly below consensus. Revenues fell to US$574mln from US$712mln.

Over the year, volumes of wearable watches sold increased to 22.3mln (21.4mln), with active users 37% better at 23.2mln, but that masked a dip in volumes in the final three months to 6.5mln from 8.2mln a year earlier.

Fitbit launched four new fitness trackers over the year but that has not stopped the weak sales trend.

It is now pinning its hopes on a new range of smartwatches, while a major cost cut program has reduced overheads by US$200mln.

For the first quarter of this year, the company predicted sales of US$270-290mln and a loss per share of between US$0.22-0.44.

Shares opened a touch higher at US$5.91. 

Story by ProactiveInvestors


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