Fitbit sales fall 41%, but beat low projections amid fierce competition

New York

FITBIT Inc gave investors some much-needed good news, reporting revenue that beat projections and suggesting it's finally making progress in its transformation from a maker of step-counting gadgets to essential health-monitoring tools.

The hardware maker's profitability has sagged while it confronts a maturing market and falling sales. Fitbit shares have lost more than half of their value over the past year, as investors lost patience that upcoming products would resuscitate demand.

The company reported earnings that came in well-below analyst expectations the past two quarters, and cut staff earlier this year to reduce operating …