MarketWatch First Take: Fitbit sees manufacturing woes, slower demand hurting holiday season

Fitbit Inc. is not expecting a very joyous holiday season.

The company’s third-quarter results and outlook for the fourth quarter were both well below expectations, fueling a drop in the stock late Wednesday and increasing the concerns among some investors, who have been worrying about slower growth by the maker of wearable fitness trackers.

“We are starting to see some headwinds in our business,” James Park, chief executive and co-founder of Fitbit, told investors at the onset of the company’s conference call, adding that they include supply constraints, challenges in the Asia-Pacific region and some softening of demand.

Fitbit said it is also having manufacturing problems ramping up its new Flex 2 device, and those problems are another reason the company’s fourth-quarter forecast is weaker than expected.

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