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Could Fitbit’s Profit Margin Improve in Fiscal 2018?

Could Fitbit’s Profit Margin Improve in Fiscal 2018?

Fitbit (FIT) needs to improve its profit margins and drive operational efficiency to offset declining device sales. Fitbit reduced its inventory by 46% YoY (year-over-year) in 4Q17 to $123.9 million, compared with $230.4 million in 4Q16. As shown in the above table, Fitbit has considerably reduced inventory in each of the last four quarters.