3 Big Takeaways From Fitbit's Earnings Report
The fitness wearables company, Fitbit (NYSE: FIT) released second quarter earnings earlier this month and seems to be showing some signs of life. While there were a number of topics covered in the earnings call, the key takeaways for investors are product sales are improving, the smartwatch will be released for the holiday season this year, and the company is on track to meet its expense management goals for the year.
Fitbit reported it sold 3.4 million devices in Q2 which was a 14% increase from Q1. While this might not seem overly impressive, this was a better than expected increase and it came while the company has been focusing on reducing channel inventory -- product sitting idly on retailers shelves not yet sold. Fitbit's channel inventory issues date bate to the company's disappointing 2016 holiday season.
What makes this improvement in device sales even more impressive is that the growth wasn't fueled by a set of new products or extra marketing spend. The only new product the company released in the first half was the Alta HR which wasn't even a new form factor. The Alta device was released in February 2016 and this new version just added the heart rate tracking feature.
Source: Fool.com
