GoPro is increasing its retail presence and product range while ramping up its brand exposure at global sporting events, despite reporting Q4 and FY 2023 operating losses and declines in revenues. Ten months since launching a multi-year growth strategy, the group says it can count on some wins despite the reported losses and corresponding sales dips.
In Q4, ended Dec. 31, the group reported an operating loss of $9.4 million against a profit of $1.7 million. Revenues fell by 8 percent to $295.4 million from $321.0 million, but gross margin improved by 170 basis points to 34.2 percent. GoPro.com revenues, excluding subscriptions and services, fell by 33 percent year-over-year and were fueled by the company’s decision to eliminate subscription-related camera discounts at the time of purchase. The net loss was $2.4 million versus a year-ago profit of $3.1 million. Retail channel revenue increased by 18 percent year-over-year to $228 million; subscription/service sales rose by 13 percent to $25 million; and estimated sell-throughs shot 3 percent higher to slightly more than 900,000 units. GoPro attributed 70 percent of its sell-through miss in Q4, which was $325 million, to lower sales of its Hero10 Black entry-level camera at a price of $249, which was not discounted but helped contribute to the gross-margin expansion.
Despite the period’s shortcomings, GoPro intends to move forward with a growth and expansion plan it launched last May that focuses on greater distribution in retail stores and more entry-level products. Bolstered by new product launches, retail door growth is forecast to grow by 7,000 over the next two years, after reaching 3,200 locations over the first ten months. This year, the brand intends to launch four new camera SKUs, establishing a price range of $199 to $599. Additional new cameras are planned for retail debuts in 2025. Additionally, the group intends to enter the tech-enabled motorcycle-helmet business, following its recent acquisition of Australia-based Forcite Helmet Systems, and eventually other helmet markets.
Retail channel sales have grown
“We’re excited about our expanding product line, the significant number of retail doors we’re adding at a steady rate, and the significantly larger number of marketing activations we have planned throughout the year to drive awareness and demand,” said CEO Nicholas Woodman in a statement.
Since last May, the brand’s retail channel sales have grown by 41 percent in EMEA, 26 percent in APAC, and 43 percent in LATAM. North American retail sales, meanwhile, rose by 12 percent and were negatively impacted by challenges at certain big-box stores and softness in the consumer-electronics category in December.
This year, the GoPro brand will receive exposure at more than 100 sporting events, including last month’s X Games. And this week, the group released its Quik desktop app, at no additional charge to subscribers, for macOS and a new Premium+ subscription tier. A Windows version of the Quik desktop app will launch later this year.
For the FY ended Dec. 31, GoPro reported a net loss of nearly $53.2 million against a profit of $28.4 million. The annual operating loss was $75.5 million against a profit of almost $39.0 million. Yearly revenues were down by 8.1 percent to slightly more than $1 billion, as the annual gross margin eroded by 500 basis points to 32.2 percent.
