Fitbit stocks plummet following third quarter report
Wearable tech company Fitbit saw shares plummet 30% after the company’s third-quarter earnings were announced. Profits were up but below analyst expectations.
Analysts had pegged profits of $507 million, but the company reported profits at $504 million, marking 23% in revenue growth but still short of expectations.
Fitbit CEO and co-founder James Park said: “I am pleased to see positive reception for our new products launched in the third quarter. We are attracting new customers while our existing ones are upgrading their devices, underscoring the strength of the Fitbit brand and growing relevancy of wearables as part of consumers’ everyday lives. We continue to grow and are profitable, however not at the pace previously expected. We are focused on improving the utility of our products and integrating more deeply into the healthcare ecosystem and believe we can leverage our brand and community to unlock new avenues and adjacencies of growth.”
Fitbit creates wearable fitness trackers that calculate the users sleep patterns, steps taken, calories burned, and daily activity, among other values.They offer a variety of products, the most popular being a simple rubber bracelet and a small tracker that clips discreetly onto clothing.
Along with the third quarter earnings, Fitbit announced their fourth quarter expectations. Over the fourth quarter, the company expects revenue between $725 million and $750 million, lower than analyst expectations, especially considering the upcoming holiday season.
The results gave investors pause, considering Fitbit recently launched a high-profile collaboration with street wear label Public School.
Following the announcements of the third quarter results, Fitbit saw stocks plummet 30%. Shares have dropped 55% since the company’s IPO on June 18th, 2015, from $40 per share to their current $8.70.
Copyright © 2023 FashionNetwork.com All rights reserved.