Fitbit, Inc. announced its preliminary FY16 Q4 results with net sales of $580 mn, which was significantly lower than the company’s quarterly guidance of $725-750 mn. The quarterly sales showed a healthy increase of 16% over the previous quarter’s sales of $504 mn but a significant drop of 19% compared on a y-o-y basis.
Given the quarterly results, the FY16 net sales will be appr. $2.1 bn with a 17% increase over last year’s figure of $1.8 bn. The management believes that the sluggish FY16 Q4 results indicate a slower than expected holiday season especially during the Black Friday. However, the company has made good progress in the EMEA region and is announcing further cost reductions to improve efficiencies. Fitbit will reduce employees by around 110 or 6% of the workforce as well as reducing expenses.
