Fitbit sales rose 10% in the first quarter
Fitbit (FIT) announced its first-quarter results on May 1. The company reported sales of $272 million—a rise of 10% YoY (year-over-year). The company reported a non-GAAP EPS of -$0.15 in the first quarter.
As you can see in the following chart, Fitbit reported sales of $505 million in the first quarter of 2016. The sales fell drastically to $299 million in the first quarter of 2017 and to $248 million in the first quarter of 2018. Garmin reported an EPS of $0.10 in the first quarter of 2016. The EPS fell to -$0.15 in the first quarter of 2017 and to -$0.17 in the first quarter of 2018.
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Analysts expected Fitbit to post sales of $259.71 million with an EPS of -$0.22 in the first quarter. Fitbit beat analysts’ sales estimate by 4.7% and beat the earnings estimate by 32% in the first quarter.
International markets drove Fitbit’s sales
Fitbit’s sales from the US fell 3% YoY to $135 million, while international sales rose 26% to $137 million in the first quarter. Fitbit’s international sales beat domestic sales for the first time ever this quarter.
The Europe, Middle East, and Africa region drove the sales. The revenues rose 35% to $87 million. The Asia-Pacific region’s sales rose 24% to $34 million. During Fitbit’s earnings call, CEO James Park said, “The international market benefited from the introduction of our new products and the recovery in the UK market. Our direct business represented 11% of sales. We exited the year with a relatively clean global channel.”