Weight Watchers CEO Resigns

by Christopher Freeburn | August 2, 2013 9:38 am

WeightWatchersLogo Weight Watchers CEO Resigns[1]Shares of Weight Watchers International (WTW[2]) plunged more than 17% in Friday morning trading after the company revealed weaker-than-expected earnings guidance and a surprise management change[3].

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.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/08/WeightWatchersLogo.jpg
  2. WTW: http://studio-5.financialcontent.com/investplace/quote?Symbol=WTW
  3. weaker-than-expected earnings guidance and a surprise management change: http://in.reuters.com/article/2013/08/01/weightwatchers-results-idINL4N0G25OK20130801

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