Fitbit’s fourth-quarter revenue fell 19%, hurt by fading consumer demand for its once-popular wearable fitness trackers.

Revenue in the quarter — which includes the holiday shopping season — dropped to US$573,8m, the company said Wednesday in a statement.

Fitbit in January had forecast sales of $572m-$580m. Before then, analysts had been predicting $736,4m, the average of estimates compiled by Bloomberg.

The company’s loss excluding certain costs was $0,56/share. Analysts on average had projected a loss of $0,53/share.

CEO James Park has been trying to prove that Fitbit is more than just a maker of trendy gadgets. The appeal of its wristbands has waned with consumers as the company faces competition from Apple’s higher-end watch and cheaper Chinese models, and last month Fitbit said it would eliminate 6% of its workforce.

Park is seeking to diversify the business, including expanding into the smartwatch category and pushing its corporate wellness offerings. His goal is to turn Fitbit into a digital health company — one that relies less on consumers and focuses on selling to the health-care industry — but that strategy will take years to unfold.

Sales in the current period will be $270m-$290m, with the loss before some items projected to be $0,18-$0,20/share, Fitbit said. Analysts on average predicted first quarter sales of $307,6m and a loss of $0,16.

Fitbit reiterated the annual revenue forecast it gave in January, for $1,5bn-$1,7bn.

The company sold 6,5m devices in the fourth quarter. That compares to more than 8,2m in the quarter a year ago.

About two-thirds of the company’s total quarterly sales were generated in the US. Revenue in Europe, the Middle East and Africa increased 58% to $134m; Asia declined 56% to $24,9m and the Americas, excluding the US, fell 12% to $33,4m.

The company disclosed it spent $23m for intellectual property and employees from smartwatch start-up Pebble Technology and $15m for those assets from Vector Watch.