Fitbit 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%, but higher than analysts\u2019 average estimate of $341.2 million.<\/p>\n
Fitbit reported a loss, excluding certain costs, of 8 cents a share, compared with a profit of 12 cents a year earlier.<\/p>\n
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% 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.<\/p>\n
The 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.<\/p>\n
Chief 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% at 5 p.m. after closing Wednesday at $5.07 in New York. The stock has plummeted 90% since its high of $51.64 two years ago.<\/p>\n
In addition to rolling out the smartwatch, Park 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