WW International Inc. (also known as WeightWatchers) shares fell even more to a record low after the weight management company announced disappointing results for the second quarter and lowered its outlook for the full year.
The company also said it was going to restructure, which will mean “the elimination of certain positions and the termination of employment for certain employees worldwide.” In the second part of the year, the company plans to pay between $12 million and $15 million to restructure.
CEO Sima Sistani said, “The world is changing quickly, and we are taking decisive actions to navigate through this environment and completely reimagining how we operate.” “We are streamlining our operational structure in a big way so that we can focus on and carry out our strategic pillars to give our members more care, access, and payment options.”
The price of WW -15.04% fell 13.8% in the morning, making it trade below $1 for the first time. The stock hit a new low of $1.07 on Wednesday.
Before June 29, the company made $23.3 million, or 29 cents per share. This is less than half of the $50.8 million, or 65 cents per share, it made in the same quarter last year.
The most recent findings show that a tax event and restructuring charges had a one-time net positive effect of 42 cents per share. After taking that effect into account, the adjusted loss per share would be 13 cents, while the average according to FactSet was for earnings per share to be 4 cents.
It made $102.1 million, which was less than the $208.5 million that FactSet thought it would make, because subscription income dropped 5.7% to $200 million. Based on statistics from FactSet, that was the 12th missed revenue in the last 14 quarters.
Total paid weeks went down 4.9%, and the number of subscribers went down 6.1%.
The business now expects at least $770 million in sales in 2024, down from $830 million to $860 million.
It was predicted that running losses would be “at most” $180.7 million, up from the previous range of $163.7 million to $153.7 million.
As of Wednesday, the stock had dropped 89.5% so far this year, while the S&P 500 SPX -0.89% had gone up 14.9%.
