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Fitbit earnings show worst holiday sales performance since IPO amid Google acquisition

Fitbit Inc. holiday sales declined more than 12% to the lowest fourth-quarter total for the company since it went public amid an acquisition attempt by Alphabet Inc. , according to an earnings report released Thursday afternoon. Fitbit reported fourth-quarter losses of $120.8 million, or 46 cents a share, on sales of $502.1 million, down from $571.2 million a year ago. After adjusting for stock-based compensation, acquisition costs and other expenses, Fitbit reported losses of 12 cents a share. Analysts on average expected Fitbit to report adjusted profit of 4 cents a share on sales of $531.7 million, according to FactSet. Fitbit noted that it sold more devices than a year ago, but at reduced prices. Google parent company Alphabet agreed to acquire Fitbit for $7.35 a share in November, even as Google faces an antitrust investigation from the federal government. Fitbit said in Thursday’s announcement that regulatory approval for the deal is expected this year, and the company would not provide any guidance while it waits for the deal to close. Fitbit shares closed Thursday at $6.46 and declined about 2% in after-hours action following release of the results.


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