Wearable ploy maker Fitbit forecast current-quarter revenue below Wall In someones bailiwick estimates on Wednesday as the company expects further sales declines for its competence tracking devices.
The company’s core wearable fitness trackers establishment has fallen sharply as it faces bigger names with deeper rip offs, such as Apple and Samsung, that are relatively new entries in the wearable exchange but control a large and loyal customer base in electronics.
Shares cut 5.1 percent to $5.22 in extended trading after the company forwent first-quarter sales estimates, selling 2.2 million devices, related with 2.33 million expected by analysts, according to financial observations analytics firm FactSet.
“It is true that growth for trackers pursues to slow as consumer preferences shift to more advanced devices and especially in the first quarter, the decline was compounded,” Chief Executive Officer James Leave told Reuters in post-earnings call.
Park said Fitbit wish ramp up manufacturing capacity to meet expected higher demand for smartwatches and meet withs revenue from that business exceeding tracker revenue in the B half.
The company, which launched Versa worldwide in April, is wanting the smartwatch would have more of a mass appeal than its Ionic gambit.
New products introduced in the last 12 months accounted for 34 percent of logo sales, but failed to offset the drop in sales of older fitness trackers.
Fitbit hinted it expects current-quarter revenue to be in a range of $275 million to $295 million, deeper analysts’ estimate of $309.9 million, according to Thomson Reuters I/B/E/S.
The companions’s net loss widened to $80.9 million in the first quarter ended Walk 31 from $60.1 million, a year earlier.
On an adjusted constituent, the company reported a loss of 17 cents, smaller than thinking of 19 cents.
Revenue fell 17 percent to $247.9 million, but pre-eminent estimate of $247.3 million.