WW - Here's Why Weight Watchers Is Poised to Disappoint
There was a time when the brand name Weight Watchers ruled the weight-loss industry's landscape. The company, now going by WW International (NASDAQ: WW), brought real solutions to real people looking to drop a few pounds, and it was regarded as the go-to solution.
It's just possible, however, that no amount of rebranding or revamping will ever be enough to restore its former glory. In fact, despite recently raised full-year profit guidance, the weight-loss organization as we know it may never actually thrive again.
While one quarter doesn't always tell the full story, last quarter's lackluster results from Weight Watchers could persist. The top-line dip of nearly 5% is in line with analyst expectations for revenue declines for the next four quarters. Further, the earnings trend isn't any more compelling. Indeed, it's downright alarming simply because the retreat follows the launch of a whole new weight-loss paradigm, called Freestyle, and a subsequent shift toward general wellness as opposed to mere dieting. It just hasn't been enough.