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More on Weight Watchers earnings

  • 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.
Comments (2)
  • John LaRosa
    , contributor
    Comments (72) | Send Message
     
    Big question: Why did Mr. Kirchoff suddenly resign after 14 years with the company? No advance warning, just abrupt resignation. Also, why has the company avoided talking at all about its 3-year plan to modernize and revamp its 850 U.S. retail sites? Has this been accomplished? If not, why not? They were supposed to also increase the hours open, to boost walk-in traffic, since most of these sites are only open 1 day a week--tremendous underutilization of facilities. Did they do that? What was the result? Also, what about the emerging China market. Any tests going on there, or plans to enter that market? Maybe the new CEO can answer some of these questions. Any plans to explore new distribution channels (like retail healthcare min-clinics in CVS & Walgreens drugstore chains)? What about strategy for dealing with Obamacare in 2014? What ever happened with the rebellion by group leaders over low pay? Did the company increase wages and quell that outcry? No info. provided. More info. please! Lots of things the company could be doing. Lots of questions. John LaRosa, Marketdata Enterprises, Tampa.
    1 Aug 2013, 07:47 PM Reply Like
  • InTheWind
    , contributor
    Comments (7) | Send Message
     
    In my non scientific opinion, each average pound Americans gain directly commensurates with each new fast food store that is opened. As a fat person myself, this is still the first name that comes to mind in weight management. For my own sake, gotta stay long on this one! At least I just lost 15% of something (wish it was weight and not value!)
    1 Aug 2013, 09:55 PM Reply Like
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