Snap lost a looot of money on Spectacles

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It turns out Snap’s Spectacles weren’t quite as exclusive as the company’s marketing would have you believe.

The company said in its earning report on Tuesday that it lost nearly $40 million on unsold devices, The Verge first reported. That comes out to around 300,000 pairs of the camera glasses.

The company said the loss was “primarily related to excess inventory reserves and inventory purchase commitment cancellation charges.”

The disclosure confirms a report from The Information last month that came after Snap CEO Evan Spiegel admitted to only having sold 150,000 units.

Snap originally billed Spectacles as an exclusive novelty with countdown clocks to announce the location of each new vending machine that sold them. But the allure faded as the headwear became more widely available.

Snap obviously isn’t the first company to fall flat attempting to push tech headwear, the most notorious failure being the Google Glass.

But it may not be throwing in the towel just yet. The Information reports that the company is still pursuing a type of augmented-reality glasses with more functionality.

The revelation caps off a dismal quarter from Snap in which it once again failed to live up to Wall Street expectations. The company’s stock plummeted nearly 17 percent in after-hours trading as a result.

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