Shares of GoPro (GPRO) are higher in afternoon trading after the company announced a new trade-up program to entice users to buy the Hero5.
TRADE-UP PROGRAM: GoPro announced this morning that it is launching its first ever trade-up program. For a limited time starting today, GoPro said existing users can receive $100 off a new HERO5 Black or $50 off a HERO5 Session when they trade in any previous generation HERO camera. The Hero5 Black usually retails for $399.99, while the Hero5 Session sells for $299.99, the company noted in its release. The program is being conducted through GoPro’s Trade-Up website, it said. CJ Prober, GoPro’s COO commented that the program “allows us to introduce existing customers to the modern GoPro experience and prepare our community for the new software enhancements ahead.”
WHAT’S NOTABLE: GoPro said in March that it would cut 270 jobs in addition to the 200 jobs it said it would cut in November. The cuts include “program costs, headcount and open positions,” the company said, adding that it expects to spend $10M this quarter on the restructuring effort. The company said the plan will help it achieve its goal of returning to non-GAAP profitability in 2017. At the time, GoPro also pre-announced that its first quarter earnings would be at the high end of guidance. November’s restructuring plan includes the closure of its entertainment division as well as facilities reductions.
KARMA RECALL: Less than a week after its last earnings report, GoPro announced the recall of roughly 2,500 Karma drones bought since October 23. The company instituted the recall after it discovered that, in a very small number of cases, Karma units lost power during operation. At the time, GoPro said that no injuries or property damage had been reported. In February, GoPro said the Karma drone had relaunched.
PRICE ACTION: GoPro is up just over 5% this afternoon to $9.13 per share.
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