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GoPro puts best face on 47% quarterly sales decline

Published July 28, 2016
Company exceeds Wall Street expectations, points to improved sell-thru rates and continued marketshare dominance.

SAN MATEO, Calif. (BRAIN) — GoPro announced a second quarter sales decline of 47 percent this week, along with a loss of nearly $92 million, after reporting a profit last year in the same period.

However, the results were better than expected by Wall Street analysts; GoPro had missed its earnings estimates in its three prior quarters.

The company found some bright spots to focus on, including a positive sell-thru pace and reduced inventory levels. The company also noted that its Hero4 Silver remains the best-selling digital camera in the U.S. And on a year-over-year basis, GoPro's average selling price increased 14 percent. GoPro is sticking with its earlier forecast for full-year sales of $1.35-1.5 billion.

"GoPro is well-positioned for the second half of the year. We now have a simple product line, a clean retail channel and clear indications of strong consumer demand," said GoPro's founder and CEO, Nicholas Woodman. "HERO5 and Karma (being introduced ahead of the holiday season) will contribute to the largest introduction of products in our history, all in time for what we believe will be GoPro's most exciting fourth quarter, ever — a quarter where we expect to return to profitability."

GoPro's stock was up 4 percent after hours Wednesday, and was up 10.5 percent Thursday to $12.79. It's still a long way from its high of $98.47 per share in October 2014.

Topics associated with this article: Earnings/Financial Reports

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