Shares of Fitbit rise on signs its fitness trackers were hot sellers for Christmas

NEW YORK -- It was a very merry Christmas for fitness-tracking device maker Fitbit.

The company's app was the most downloaded on Apple's app store Christmas Day, a sign that many people couldn't wait to set up their Fitbit trackers after unwrapping them.

See Full Article

It also suggests that Fitbit trackers were a hot seller during the holidays, despite increasing competition from Apple's smartwatch and other wearable devices. Investors were pleased, sending shares of the San Francisco company higher Monday.

The Fitbit app topped Apple's app store in the U.S. on Christmas Day and the day after, according App Annie, which tracks app downloads and rankings. That's far better than last year when the Fitbit app ranked at No. 18 on Christmas Day and No. 15 the day after, according to research from Raymond James & Associates. In a note to clients, Raymond James analyst Tavis McCourt called the numbers "impressive."

Fitbit declined to comment Monday. Apple did not respond to a request for comment.

While app downloads don't necessarily mean a tracker was sold, McCourt said it's a "good measure of relative sales success."

Retailers confirmed Monday that Fitbit trackers were in high demand during the holiday shopping season.

Macy's Inc. said the Fitbit's products sold "very well" at the department store. Discount retailer Target Corp. said the trackers were one of its top-selling electronics during the holiday season. And Inc. said the Fitbit Charge was one of its most popular items for customers that used its same-day delivery service in Chicago, Dallas, New York and other major cities.

App downloads could also lead to future sales. Users who track their health information on the app are more likely to buy another Fitbit device when they want to upgrade, said Ross Rubin, the senior director of industry analysis at App Annie.

Amanda Hetherington opened a Fitbit Flex on Christmas Eve, a gift from her son, and plans to buy more.

Hetherington, who says she is working on getting back into shape, downloaded the app on Christmas Day. Besides steps, she also plans to track what she eats and how much water she drinks with the app.

She's already making changes: This weekend she parked further away from a restaurant to get in more steps.

"I love it so much," said Hetherington, who lives near Columbia, South Carolina, "I'll probably get one for my husband for Valentine's Day."

Fitbit sells several different devices that track user's steps, calories or sleep patterns. They cost as little as $60 for a tracker that clips to clothing to about $250 for a watch. The company has already sold more than 13 million devices so far this year before the holiday shopping season, surpassing the 10.9 million total devices it sold last year.

But like a new gym membership, there is still the question of how long people will remain dedicated to their fitness trackers once the novelty wears off. Research firm Endeavour Partners estimated earlier this year that about a third of trackers get abandoned after six months.

On Monday, shares in Fitbit Inc. jumped 95 cents, or 3.3 per cent, to $29.86. Still, they are down about 42 per cent since reaching a high of $51.90 in August, a couple of months after the company's initial public offering in June.


Latest Economic News

  • BAT offers to buy Reynolds in $47B deal

    Economic CTV News
    LONDON - British American Tobacco has offered to buy Reynolds American Inc. in a $47 billion cash-and-stock deal. The London-based company offered Friday to buy the 57.8 per cent of Reynolds it doesn't already own for the equivalent of $56.50 per share. Source
  • Asian shares mixed on European Central Bank stimulus hopes

    Economic CTV News
    HONG KONG - Asia stock markets drifted Friday as oil prices slid. The dollar rallied after Europe's central bank kept the door open for more monetary stimulus, leaving investor sentiment mixed. KEEPING SCORE: Japan's benchmark Nikkei 225 index rose 0.3 per cent to 17,285.53 but South Korea's Kospi lost 0.3 per cent to 2,032.85. Source
  • Lululemon warns it might move HQ out of Vancouver

    Economic CBC News
    Lululemon is warning that it may forced to move its headquarters out of Canada because the federal government's temporary foreign worker program is limiting its ability to stretch its wings. The Vancouver-based apparel company best known for its yoga pants currently has 1,200 employees working in its head office in Vancouver and says it needs to hire specialized workers to further expand. Source
  • Plans to boost household income by $15,000 by 2030 unveiled

    Economic CBC News
    The Trudeau government's influential team of economic advisers unveiled a batch of growth-lifting recommendations Thursday that focused on immigration, infrastructure and investment strategies. The objective, the experts say, is to double Canada's projected growth trajectory and add an eye-popping $15,000 to the annual incomes of Canadian households by 2030. Source
  • Feds' advisers share recipe for growth: investment, immigration, infrastructure

    Economic CTV News
    OTTAWA -- The Trudeau government's hand-picked team of economic advisers is recommending Ottawa deliver over $200 billion worth of infrastructure projects over the next decade using as few taxpayer dollars as possible. The suggestion was unveiled Thursday as part of the growth council's first tranche of recommendations on how Ottawa should resuscitate the lacklustre economy. Source
  • Canada-Europe trade deal brinkmanship hinges on Walloons, but also visas

    Economic CBC News
    European Union trade policy seems to be teetering, thanks to a high-risk standoff with Belgium's Wallonian regional government, set to climax Friday morning as leaders gather for European Council strategy talks. But a second issue blocks unanimous support for Canada's trade deal, and this one's comparatively easy for Justin Trudeau to fix. Source
  • Bank places 100 'lucky pennies' across U.S. worth $1,000 each

    Economic CTV News
    DETROIT -- Stopping to pick up a stray penny off the ground may not seem worth the effort, yet one bank is trying to change that mindset by placing 100 fake pennies across the country worth $1,000 apiece. Source
  • Postmedia: Layoffs possible if buyouts don't meet cost-cutting target

    Economic CTV News
    TORONTO -- Postmedia said Thursday it plans to reduce its salary costs by 20 per cent through voluntary staff buyouts, adding that layoffs are possible if that target isn't met as it announced net losses that nearly doubled in its most recent quarter. Source
  • Wal-Mart, offer more choices for Singles Day

    Economic CTV News
    NEW YORK -- Wal-Mart and are offering more choices for Chinese shoppers ahead of Singles Day, one of the world's biggest online shopping days of the year. That includes two-hour delivery services at some Wal-Mart stores and a Wal-Mart global store on JD Worldwide,'s cross-border platform. Source
  • Postmedia aiming to cut staff costs again

    Economic CBC News
    Postmedia Network Canada Corp. says its intends to reduce staffing costs again as the company reported lower revenue and a deeper quarterly net loss. The company, which currently has about 4,000 employees, says it plans to cut costs through staff buyouts over the next few weeks, adding that layoffs are possible if its target isn't met. Source