Earnings

Fitbit shares plunged in extended trading after the maker of wearable fitness devices provided a weaker-than-expected forecast.

The shares sank another 12 percent after hours to $6.08.

Fitbit said sales in the first quarter will increase as much as 8 percent from a year earlier to between $250 million and $268 million. Analysts were expecting revenue of $272.3 million, according to Refinitiv. The company also said its loss, excluding certain items, will be 22 cents to 24 cents a share, while analysts were predicting a 15-cent loss.

The wearables market has proven increasingly difficult for Fitbit as Apple continues to upgrade the Apple Watch and Xiaomi becomes a bigger global player. As of Wednesday’s close, the stock was 66 percent below its IPO price from 2015.

For the fourth quarter, Fitbit reported sales of $571.2 million, topping the $569 million average estimate, according to Refinitiv.

WATCH: Fitbit CEO on smartwatches

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