Weight-loss resolutions propel Nutrisystem
Total U.S. weight loss market revenues were $61.6 billion in 2012 and $60.6 billion in 2011. Revenues are forecast to grow 2.6% in 2013. If we stuck to our guns, this industry would be losing right along with all of us, but that’s not the case for Nutrisystem (NTRI).
As weight loss resolutions and efforts grow in the early part of the year, so do sales of Nutrisystem products. First-quarter sales have improved over the past six years by an average of 25.1%.
After the company reported a 5% year-over-year revenue gain in the 2013 third quarter, the stock climbed to two-year highs. This can be attributed to lower costs and shift in marketing strategy. Expect the first quarter to fatten investors’ wallets again.