Weight Watchers' earnings fall far short, and stock plunges nearly 30%

The company's stock plunged as much as 28% during after-hours trading Tuesday after WW ( WTW ) posted its latest earnings report.

WW is in the middle of a campaign to rebrand as a wellness company after spending decades as the biggest name in weight loss programs.

CEO Mindy Grossman said in a statement that customer recruitment has been slow, and the company quickly "moved to course correct" with revamped advertising and media campaigns.

"While we are disappointed with our start to 2019, we are confident that our strategy to focus on providing holistic wellness solutions leveraging our best-in-class weight management program is the right path to support long-term sustainable growth," Grossman said.

Brathwaite is worried that reviews for the WW app will become "increasingly negative" and competition from rival weight-loss services Noom and Diet Doctor.

Nagel conceded that "investors have increasingly fretted over the potential for waning subscriber growth at the company."

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