Fitbit revenue slumps on weak demand for fitness trackers

Reuters News
Posted: Aug 02, 2017 4:26 PM

(Reuters) - Fitbit Inc reported a 40 percent drop in revenue, its third straight quarterly decline, as the wearable device maker bore the brunt of waning demand for its fitness trackers, particularly in the U.S market. The company reported a net loss of $58.2 million, or 25 cents per share, in the second quarter ended July 1, compared with a profit of $6.3 million, or 3 cents per share, a year earlier. The fitness-band maker's revenue fell to $353.3 million from $586.5 million.

Fitbit, which has called 2017 "a transition year" and is taking steps to reduce operating costs, cut 6 percent of its workforce in January.

(Reporting by Amy Caren Daniel and Ismail Shakil in Bengaluru; Editing by Anil D'Silva)