After months of instability, losing cachet to rivals, and some uncertainty about whether its niche market products had a future, Fitbit is looking like it is on the road to getting back in shape.
Fitbit shares surged 13 percent Thursday, to $5.73, in the wake of the fitness band maker reporting better-than-expected quarterly results late Wednesday. Fitbit said it lost 8 cents a share on revenue of $353.3 million for the quarter that ended July 1. Compared to a year ago, when Fitbit earned 12 cents a share on $586.5 million in sales, Fitbit’s most recent results might appear to be disappointing.
But Fitbit has been in a period of cutting its operating costs to help get its balance sheet in line. And the company’s results ended up being better than the 15-cents-a-share loss, and $341.6 million in revenue, that Wall Street analysts expected Fitbit to report.
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Fitbit also said it sold 3.4 million of its fitness bands and devices, which was roughly in line with what analysts had forecast.
James Park, Fitbit’s chief executive, said the company saw demand grow for its products during the quarter, which helped it reduce its inventories heading into the second half of the year, and eventually, the critical Christmas shopping season.
And Fitbit has a lot riding on the plans of holiday gift buyers this year. Park said Fitbit’s new smartwatch is in the production process and will be available for consumers to purchase in time to fill out Christmas wish lists.
Photo: Fitbit’s lineup of Blaze fitness band products. (Courtesy Fitbit)
Tags: Fitbit, smartwatch, wearables