Fitbit heralded the performance of its Versa smartwatch, as its Q2 results showed it still has some way to go with efforts to turn the business around.
James Park, co-founder and CEO, said the Versa “outsold Samsung, Garmin and Fossil smartwatches combined in North America, improving our position with retailers, solidifying shelf space for the Fitbit brand and providing a halo effect to our other product offerings”.
Versa sold out in the quarter, a factor Park said “highlights the opportunity to regain market share as we progress in the smartwatch category and continue to deliver both hardware and software offerings that the consumer finds compelling”.
But overall, the numbers were less impressive. It reported a loss of $118.3 million compared with a prior-year loss of $58.2 million, on sales of $299.3 million, down from $353.3 million.
The lower revenue was attributed to a decline in the number of devices shifted, although it this was partially offset by an increase in selling price.
Fitbit sold 2.7 million units during the quarter, down from 3.1 million in the comparable 2017 period. The company said the year-on-year decline of 20 per cent was less than the 27 per cent experienced in Q1.
The company indicated channel reduction in the fitness tracker business has run its course, with Q2 marking the trough in year-on-year declines. This segment is expected to continue to be an important part of the wearables market and Fitbit flagged devices such as its Ace kids device as opening up new customers.
With Fitbit having been named as one of the companies set to be caught out by US tariffs on China-made products, Ron Kisling, CFO, said that it is “navigating a number of different paths to reduce or eliminate the impact of the tariff”.