Aug 1 Weight Watchers International Inc
cut its profit forecast as competition from free apps ate into
its business, sending its shares down 17 percent in after-hours
The weight management company also said its Chief Executive
of more than six years David Kirchhoff has resigned, effective
July 30, to pursue other opportunities. It named Chief Operating
Officer James Chambers as his replacement.
Weight Watchers cut its full-year profit forecast to a range
of $3.55-$3.70 per share from $3.60-$3.90.
Analysts on average were expecting a profit of $3.72,
according to Thomson Reuters I/B/E/S.
"Our prior forecasts had assumed the recruitment trend would
improve, but the opposite has transpired ... We now expect these
trends to continue for the remainder of this year," Chief
Financial Officer Nick Hodgkin said on a conference call with
The company said net income fell to $64.9 million, or $1.15
per share, in the second quarter, from $77.5 million, or $1.36
per share, a year earlier.
Revenue fell 4 percent to $465.1 million in the quarter
ended June 29, hurt by lower volumes in its meetings business,
particularly in North America and the UK.
Weight Watchers' meetings business organizes meetings to
offer nutritional advice to groups of customers. It also offers
weight management plans through a network of company-owned and
Analysts on average had expected a profit of $1.11 per share
on revenue of $459.3 million.
Weight Watchers shares were at $39 after market. They closed
at $47.03 on the New York Stock Exchange on Thursday.