Fitbit smartwatch to be released for the holidays

Fitbit aficionados can now count the days down along with their steps to when the company’s long-awaited smartwatch will be released.

Fitbit announced Wednesday that its smartwatch will be available in time for holiday sales. It is unclear exactly when the smartwatch will be available on store shelves.

With the smartwatch, which reportedly faced production issues, Fitbit hopes to take back the crown from Apple as the premier wearables company and revive its declining sales.

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In its second-quarter earnings call Wednesday, Fitbit CEO James Park revealed that the smartwatch will have fitness-tracking features, GPS capabilities, a multi-day battery life and a water-resistant frame.

“We are executing according to our transition plan and have increased confidence in achieving our full-year results,” said 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.”

Fitbit beat the bearish Wall Street forecasts but still lagged significantly behind where it was a year ago. Fitbit reported $353 million in revenue and sold 3.4 million units this past quarter; it made $586 million and sold 5.7 million units during the same time period last year.

U.S. sales declined by 55 percent to $199 million, while Asia Pacific sales jumped by 21 percent to $21 million.

Fitbit expected its third-quarter numbers to be on par with the second quarter. Fitbit Chief Financial Officer Bill Zerella said the third quarter will be driven by existing legacy products, hinting that the smartwatch will not be released before the fourth quarter of the calendar year.

After beating Wall Street forecasts, Fitbit’s after-hour stock price jumped 4.54 percent to $5.30 a share.

Photo: Fitbit CEO James Park, right, smiles after ringing the ceremonial bell at the New York Stock Exchange as his company’s shares begin trading June 18, 2015. (Richard Drew/AP)

 

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  • Walking Fool

    Fitbit will be dead in less than a year.

 
 
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