Shares of Weight Watchers International (WTW) plunged more than 17% in Friday morning trading after the company revealed weaker-than-expected earnings guidance and a surprise management change.
On Thursday, the company announced that CEO David Kirchhoff had stepped down on July 30. It also reduced its earnings forecast for the year from an earlier range of between $3.60 to $3.90 a share, to between $3.55 to $3.70, disappointing analysts who were looking for full-year earnings of $3.72 a share, Reuters notes.
A company executive said that Weight Watchers was attracting fewer weight loss customers. It reported a second-quarter profit of $64.9 million, down from $77.5 million in the same time last year. The company said quarterly revenue fell to $465.1 million, down 4% compared to last year.
Kirchhoff had led the company for more than six years. Weight Watchers said he had departed to explore other ventures.