GoPro cutting about 100 jobs after weak fourth quarter sales

NEW YORK - Wearable camera maker GoPro says it will eliminate about 100 jobs after its fourth-quarter sales fell far short of its expectations.

See Full Article

GoPro says fourth-quarter revenue was $435 million instead of the $500 million to $550 million it forecast in October. The company lowered the price of its new Hero4 Session camera after saying it made the product too expensive, which reduced its fourth-quarter revenue by $21 million.

FactSet says analysts expected GoPro to report $521.2 million in revenue.

The San Mateo, California, company had around 1,500 employees at the end of 2015 after hiring more than 500 people that year. It is cutting 7 per cent of its jobs, or around 100 positions.

GoPro's products are popular with extreme sports enthusiasts, but it faces competition from smartphones and other wearable gear.

It was already predicting a drop in sales compared to last year because it didn't launch a new product in the fourth quarter. The new forecast means revenue dropped about 31 per cent from the fourth quarter of 2014.

GoPro shares closed at $14.61 on Wednesday, down 71 per cent over the past 12 months. The stock skidded 22 per cent to $11.40 in aftermarket trading.

GoPro Inc.'s June 2014 initial public offering priced at $24 per share.



Advertisements

Latest Economic News

  • Inflation rate cools to 1.3% in May as food got cheaper

    Economic CBC News
    Food prices have gotten cheaper in the past year, Statistics Canada says. (The Associated Press) The cost of living went up by 1.3 per cent in the year up to May, a slightly slower pace than it increased by a month earlier. Source
  • Weaker growth in gas prices helps slow annual inflation rate to 1.3 per cent in May

    Economic CTV News
    OTTAWA -- Canadian inflation eased up on the accelerator last month as weaker year-over-year growth in gasoline prices helped slow the annual rate to 1.3 per cent, Statistics Canada said Friday. The May inflation rate was also lower than April's reading of 1.6 per cent because prices declined in electricity, bakery products and Internet access services, the agency said in its latest monthly report. Source
  • Why is the teen summer job disappearing? [Video]

    Economic Toronto Sun
    WASHINGTON — It was at Oregon’s Timberline Lodge, later known as a setting in the horror movie “The Shining,” where Patrick Doyle earned his first real paycheque. He was a busboy. The job didn’t pay much. But Doyle quickly learned lessons that served him for years as he rose to become the CEO of Domino’s, the pizza delivery giant: Source
  • BlackBerry swings to $671M quarterly profit despite lower sales

    Economic CBC News
    BlackBerry is reporting a $671 million US profit for the first quarter but its revenue was lower than expected, missing analyst estimates. The company says its revenue for the quarter was $235 million US — compared with estimates of $264.39 million US, according to Thomson Reuters data. Source
  • BlackBerry to report Q1 earnings amid acquisition speculation

    Economic CTV News
    WATERLOO, Ont. -- BlackBerry will release its latest quarterly report today -- the first since its stock bounced higher amid speculation that the former smartphone maker may be a prime acquisition target. BlackBerry's shares (TSX:BB) rose about 50 per cent from roughly $10 in April to a 52-week high of $15.82 on June 1 at the Toronto Stock Exchange. Source
  • BlackBerry shares fall despite Q1 profit; revenue lower than analysts expected

    Economic CTV News
    WATERLOO, Ont. -- BlackBerry (TSX:BB) is reporting a US$671 million profit for the first quarter but its revenue was lower than expected, missing analyst estimates. The company says its revenue for the quarter was US$235 million -- compared with estimates of US$264.39 million, according to Thomson Reuters data. Source
  • Brexit anniversary: British economy faces more pain

    Economic CTV News
    LONDON - Few events outside of war can have quite as much potential impact on the economy of a country as Britain's decision a year ago to leave the European Union. The momentous vote on June 23, 2016 has the potential to sever Britain's ties to its main trading partner, a grouping it has spent more than four decades building ever-closer ties to. Source
  • Too little, too late? Sears tries to rebrand by getting hip, hiding name

    Economic CBC News
    In its battle for survival, Sears Canada is trying to shed its old-school image and replace it with a fresh look and hipper brands. It has even opened a flashy pop-up store in downtown Toronto that sells trendy ripped jeans and keeps quiet its affiliation with Sears. Source
  • 3 years into the downturn, is Calgary better off?

    Economic CBC News
    Three years ago today, oil traded at nearly $107 US a barrel. Things were looking pretty bright in Calgary that summer day. The city was rebuilding from the flood the year before, the job market was tight, salaries high, the real estate market was busy and prices buoyant. Source
  • Summer jobs vanishing for teens

    Economic CTV News
    WASHINGTON - It was at Oregon's Timberline Lodge, later known as a setting in the horror movie "The Shining," where Patrick Doyle earned his first real paycheque. He was a busboy. The job didn't pay much. Source