Revenue during the quarter plunged 40.85 percent to $298.94 million from $505.36 million in the previous year period. Gross margin for the quarter contracted 668 basis points over the previous year period to 39.57 percent. Operating margin for the quarter stood at negative 30.57 percent as compared to a positive 3.71 percent for the previous year period.

Operating loss for the quarter was $91.38 million, compared with an operating income of $18.75 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $61.98 million compared to operating profit of $37.07 million in prior year period.

"In the ten years since Fitbit was founded, we have transformed the wearables category with more than 63 million devices sold, over 50 million registered device users, and a global retail footprint of more than 55,000 stores. Underlying consumer demand has been better than our reported results in North America as we work down channel inventory levels, giving us increased confidence that we will enter the second half of 2017 with a relatively clean channel,' said co-founder and chief executive officer James Park. "While 2017 remains a transition year, we have executed on our restructuring plan and are focused on positioning the company for the next stage of growth within wearables and connected health."

For financial year 2017, Fitbit, Inc. expects revenue to be in the range of $1,500 million to $1,700 million.

For the second-quarter 2017, Fitbit, Inc. expects revenue to be in the range of $330 million to $350 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.14 to $0.17 for the second-quarter.

Working capital declines
Fitbit, Inc. has witnessed a decline in the working capital over the last year. It stood at $663.25 million as at Apr. 01, 2017, down 24.24 percent or $212.17 million from $875.42 million on Apr. 02, 2016. Current ratio was at 2.28 as on Apr. 01, 2017, down from 2.66 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 59 days for the last year period. Days sales outstanding went up to 101 days for the quarter compared with 87 days for the same period last year.

Days inventory outstanding has decreased to 50 days for the quarter compared with 70 days for the previous year period. At the same time, days payable outstanding was almost stable at 98 days for the quarter, when compared with the previous year period.