Weight Watchers retains racking up spectacular outcomes. That is making billionaire board member and celeb spokeswoman Oprah Winfrey even richer.
The eating regimen firm mentioned late Tuesday that it posted a 23% leap in subscribers — almost 600,000 extra individuals than a 12 months in the past — and reported gross sales and earnings that topped forecasts.
Though members could also be shedding kilos, buyers — together with Winfrey — are gaining extra revenue.
Shares of Weight Watchers ( initially rose on the earnings information Wednesday earlier than pulling again. However the inventory remains to be up almost 60% this 12 months. )
Winfrey’s 6.4 million shares within the firm — an almost 10% stake — are actually price about $445 million.
That is a greater than $400 million enhance from what she paid for the inventory again in October 2015.
The success of Weight Watchers is coming on the expense of rival Nutrisystem, which reported a lackluster outlook Tuesday morning.
Shares of Nutrisystem ( plunged greater than 20% on that information. )
The star energy of Winfrey, in addition to hit music producer and new “social media ambassador”/endorser DJ Khaled, seems to be a predominant draw for Weight Watchers.
DJ Khaled has been touting the corporate’s new Freestyle program, which expands Weight Watchers’ well-known “zero factors” choices past vegatables and fruits to issues like eggs, beans, hen and seafood.
Weight Watchers is also doing an awesome job of convincing those who it isn’t nearly counting energy, factors and kilos.
CEO Mindy Grossman, who took excessive spot at Weight Watchers final 12 months after a protracted stint as the pinnacle of retailer HSN, is emphasizing that the corporate’s companies are about higher dwelling decisions typically and never simply consuming fewer fatty meals.
Grossman advised analysts in a convention name Tuesday that “wholesome is the brand new skinny.”
“The world would not want one other eating regimen. The world wants a pacesetter in wellness and a model that may convey wellness to everybody, not just some,” Grossman mentioned.
Grossman added that the corporate will launch what it dubs the “Summer of Impact” in Could — a brand new program that “will have fun meals, household, well being and enjoyable, inspiring households and their associates world wide to be more healthy.”
Wall Avenue is celebrating the more healthy outlook too. Credit standing company Moody’s upgraded its outlook on Weight Watchers’ debt Wednesday.
Moody’s senior credit score officer Edmond DeForest cited expectations for “strong” income and subscriber progress this 12 months “following a formidable efficiency in 2017.”
So it seems to be like buyers might be able to hold getting fats on good points from Weight Watchers inventory — whilst Oprah, DJ Khaled and tens of millions of different members shed kilos.
CNNMoney (New York) First printed February 28, 2018: 1:49 PM ET