Making gains on Weight Watchers never felt so good! Investors in Weight Watchers International, Inc. (NYSE: WTW) may be sitting smug after reviewing the Q1 earnings of 2017 released Tuesday afternoon (5/2/2017).
Revenues are up 7% Year over year (YOY) to $329 million compared to about $307 million in Q1 of 2016. But wait, there’s more! Operating income up $30 million from $14 million in Q1 (2016). Subscribers to the program are also up 16% to 3.6 million as well as an EPS guidance raised from $1.30-$1.40 to $1.40-$1.50! In the spirit of Oprah Winfrey, You get a gain! You get a gain! You get a gain! Everybody get a gain!
Ray Debbane, Chairman of Weight watchers states “Weight Watchers has delivered a very successful winter season, solidifying the company’s return to growth…As the company previously announced, I look forward to Mindy Grossman joining the Weight Watchers team and our Board of director in July. She is the right CEO to empower the brand and unlock its full potential.”
Nick Hotchkin also stated, “In the first quarter, we delivered strong revenue growth and achieved a 16% increase in end of period”
The Company believes it is the world’s leading commercial provider of weight management services, operating globally through a network of Company-owned and franchise operations. In the more than 50 years since its founding, the Company has built its business by helping millions of people around the world lose weight through sensible and sustainable food plans, activity, behavior modification and group support. As of the end of fiscal 2016, the Company had approximately 1.1 million active meeting subscribers, who could attend approximately 32,000 Weight Watchers meetings around the world, which were run by approximately 8,800 leaders—each of whom lost weight on the Company’s program. The Company also believes it is the leading global provider of paid digital subscription weight management products. As of the end of fiscal 2016, the Company had approximately 1.5 million active Online subscribers.