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Business

Weight Watchers International Q4 Earnings 2018




Weight Watchers shares crashed 28 percent on Tuesday after the company posted disappointing fourth quarter results and provided a weak 2019 forecast that the company is trying to turn to a wellness company from a diet brand.

This is what the company reported compared to what Wall Street expected, based on a survey by Refinitive analysts:

  • Earnings per share: 46 cents, adjusted, against 60 cents expected [19659004] Revenue: $ 330 million vs. $ 347 million expected

Weight Watchers reported adjusted fourth quarter earnings of 46 cents per share, which went well out of the 60 cents per share analysts followed by Refinitive The sales reached $ 330 million, also coming under the Wall Street expectation of $ 347 million.

For 201[ads1]9, Weight Watchers said it expects to generate about $ 1.4 billion in revenue. Refinitive, had predicted $ 1.66 billion in revenue for the year.

"While we are proud of our achievements in 2018, we had a soft start in 2019 against last year's strong performance with the launch of WW Freestyle, CEO says. Mindy Grossman in a statement. "Given our winter campaign not recruited as expected, we have focused on improving members' recruitment trends. We quickly moved to the course properly, including introducing new creativity with a stronger call and further optimizing our media mix." [19659006] The company tried to move away from its roots as a diet firm, and dropped "weight" from its name and rebranding as WW. Younger consumers have largely hid counting calories, instead trying to just eat clean or be more aware of what they eat.

Leaders believed that becoming a wellness partner rather than a diet brand could also keep customers alive rather than the length of their weight goals.

"While we are disappointed with our beginnings in 2019, we are confident that our strategy of focusing on providing holistic wellness solutions that take advantage of our best weight management program is the right way to support long-term sustainable growth," Grossman said.

Weight Watchers said it will drain spokeswoman, investor and board member Oprah Winfrey, playing a key role in the company's spring TV and digital marketing campaign.



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