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Fitbit Reports Loss, Talks Up Smartwatch

Fitbit has reported revenues of $353 million and a net loss of $28 million for the second quarter of 2017 but downplayed the latter with talk of their first smartwatch and strong growth in the Asia-Pacific region.

“Consumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales. We are executing according to our transition plan and have increased confidence in achieving our full year results,” said co-founder and CEO James Park.

“Our smartwatch, which we believe will deliver the best health and fitness experience in the category, is on track for delivery ahead of the holiday season and will drive a strong second half of the year. In the long term, we are confident in our vision for the future and are uniquely positioned to succeed by leveraging our brand, community, and data to drive positive health outcomes.”

Fitbit sold 3.4 million devices during the period, which is 17% higher than the first quarter but a disappointing 40% fall from the corresponding period in 2016.

The company say that  U.S. revenue contracted 55% to $199 million, EMEA revenue grew 9% to $109 million and APAC revenue grew 46% to $21 million.

Interestingly, they noted that 38% of the activations in the quarter came from customers who made repeat purchases and, of the repeat purchasers, only 39% came from customers who were inactive for 90 days or greater.

Looking forward, the company are expecting Q3 revenues to fall between $380 and $400 million while full-year revenues shape up to somewhere between $1.55 and $1.7 billion.