Weight Watchers International Inc. (NASDAQ:WTW) shares stumbled 30% Tuesday after the company posted disappointing fourth-quarter results and gave a weak outlook for 2019. The company is struggling as it tries to pivot to a wellness company from a diet brand.
Earnings per share came in at 46 cents adjusted, vs. 60 cents expected. Revenue was $330 million vs. $347 million expected
Weight Watchers reported adjusted fourth-quarter earnings of 46 cents per share, falling well short of the 60 cents per share analysts had expected. Sales reached $330 million, also coming in below the $347 million Wall Street had expected.
For 2019, Weight Watchers said it expects to generate about $1.4 billion in revenue. Analysts had been predicting $1.66 billion in sales for the year.
CEO Mindy Grossman stated, "While we are proud of our accomplishments in 2018, we had a soft start to 2019 versus last year's strong performance with the launch of WW Freestyle.
"Given our Winter Campaign did not recruit as expected, we have been focused on improving member recruitment trends. We quickly moved to course correct, including introducing new creative with a stronger call-to-action and further optimizing our media mix."
The shares have plunged by more than 58% over the last 12 months before Tuesday's news.
Under Grossman, the company has moved away from its roots as a diet company, dropping the word "weight" from its name and re-branding itself as WW last year. Younger consumers have largely shunned counting calories, instead trying to simply eat clean or be more mindful about what they're eating.
Shares tanked $10.50, or 35.5%, to $19.07
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