Fitbit posts smaller loss on strong smartwatch sales

(Reuters) - Wearable device maker Fitbit Inc (FIT.N) on Wednesday reported a smaller-than-expected quarterly loss on higher sales for new smartwatches such as Versa and Ionic, sending its shares up 3.4 percent.

FILE PHOTO: The ticker symbol for Fitbit is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) February 23, 2016. REUTERS/Brendan McDermid/File Photo

Fitbit, a late entrant to the smartwatch market, is facing stiff competition from tech players with deeper pockets such as Apple Inc (AAPL.O) and Samsung Electronics (005930.KS).

The company sold a total of 2.7 million devices in the second quarter, beating FactSet’s average estimate of 2.5 million.

Revenue fell 15.3 percent to $299.3 million, of which 59 percent came from sale of newer devices. Analysts were expecting revenue of $285.4 million.

Fitbit CEO James Park said its ‘mass-appeal’ Versa smartwatch outsold Samsung, Garmin and Fossil smartwatches combined in North America in the quarter.

Rival Garmin Ltd (GRMN.O) reported better-than-expected quarterly profit, signaling higher demand in the wearable devices market.

The company’s net loss widened to $118.3 million, or 49 cents per share, in the second quarter ended June 30 from $58.2 million, or 25 cents per share, a year earlier.

On an adjusted basis, the company lost 22 cents per share, smaller than the estimate of 24 cents, according to Thomson Reuters I/B/E/S.

Shares of the company rose to $6.12 in after-hours trading.

Reporting by Akanksha Rana in Bengaluru; Editing by Arun Koyyur

(Original source)