- Weight Watchers (WTW) Q2 beats on revenue, but net earnings fell 16% on a a $20M debt-refinancing charge.
- Revenue in the weight-loss meetings business was especially weak as it experienced declining volumes globally, most notably in North America and the United Kingdom.
- Total paid weeks -2.5% Y/Y, online paid weeks +4.4%, meeting paid weeks -10.4%.
- Looking forward, the company issues downside guidance for FY13, lowering its EPS expectations to between $3.55 - 3.70 from $3.60 - 3.90. Street consensus is for $3.70.
- CEO David Kirchhoff resigns to pursue other opportunities. He will be succeeded as CEO by President and COO James Chambers, who joined the company in January.
- Shares -15.3% AH.