Weak Fitbit sales hurt Q1 financial results: 6 things to know

Sales of Fitbit activity trackers have declined as the wearables company faces heightened competition from Apple and Samsung, according to the company's first quarter financial results reported by CNBC.

Here are six things to know.

1. Fitbit fell short of its sales estimates, selling 2.2 million devices instead of the 2.33 million expected by analysts, FactSet, a financial data analytics firm, told CNBC.

2. Although new products brought to market in the last 12 months made up 34 percent of device sales, this still failed to offset the declining sales of older fitness trackers.

3. Fitbit revenue was down 17 percent at $247.9 million, which exceeded the estimated $247.3 million.

4. Net loss widened to $80.9 million, compared to $60.1 million the same period in fiscal year 2017.

5. Shares dropped 5.1 percent to $5.22 in extended trading.

6. Fitbit is projecting second quarter revenue between $275 million and $295 million.

More articles on business:
T-Mobile, Sprint strike $26B merger deal: 4 things to know
Walmart signals new international strategy with $4.1B UK grocery sale
Amazon ups annual Prime membership to $119: 4 notes on Amazon's Q1

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers