Via Investors : Wearable fitness device maker Fitbit (FIT) saw its shares rise on Thursday after it announced a distribution deal with Chinese e-commerce website Tmall.com, but its stock soon tuckered out.
Fitbit stock was up as much as 5.4% to 18.85 in morning trading on the stock market today. But it ended the day up 1.2% to 18.10.
Fitbit said its deal with Tmall.com, owned by Alibaba Group (BABA), will “significantly expand Fitbit’s reach in China.” Tmall.com is China’s largest third-party platform for brands and retailers.
Fitbit will get a major retail presence on Alibaba’s Tmall.com online shopping site for products like the Fitbit Blaze smart fitness watch and the Fitbit Alta fitness band.
“Alibaba is the gateway to China for international brands seeking to access one of the world’s largest consumer markets,” Hao Li, general manager of Alibaba’s 3Cs Business Unit, said in a statement. “Across China there is a growing interest in personal health, fitness and overall well-being, and we see very strong demand from our customers in these categories – specifically for Fitbit devices. We look forward to leveraging Fitbit’s leadership in the emerging field of connected health and fitness to connect our consumers with the budding national fitness craze.”
San Francisco-based Fitbit is scheduled to report first-quarter financial results after the market close on Wednesday.