Things Got Ugly When Fitbit Trackers Piled Up in Stores
- Trimmed forecast dims hopes for strong holiday sales
- Asia sales fell 45% amid competition from Xiaomi wearables
Fitbit Tumbles 30% as Holiday Forecasts Miss Estimates
In September, with typical marketing hoopla, Fitbit Inc. rolled out two new gadgets, the Charge 2 and Flex 2. Designed to measure more detailed fitness stats, the trackers were well reviewed and seemed poised to help Fitbit retain leadership of an increasingly competitive market. But within weeks the devices were piling up in stores, according to analyst spot checks.
On Wednesday Fitbit cut its forecast for sales in the crucial holiday season, when companies generate much of their sales. The shares tanked, with at least seven analysts downgrading the company, and some predicting the stock price will fall as low as $8. The rout continued on Thursday, and the shares had plunged 30 percent to $8.98 by 11:09 a.m. in New York.