Results of Weight Watchers International T1 2019

Weight Watchers shares rose 15% after markets closed on Wednesday. The company posted lower-than-expected first quarter results and strengthened its guidance for the year.

Here's what the company has reported against Wall Street's expectations, based on Refinitiv's average analyst estimates:

• Earnings per share: 16 cents loss compared to 26 cents expected loss
• Revenues: $ 363.2 million against $ 365.9 million expected

Weight Watchers is trying to turn into a brand of well-being instead of a diet company. He reorganized his image and renamed himself WW last year. The new look collapsed with consumers when the keto-style diet became mainstream, which hurt the company's recruitment efforts early in the first quarter, the critical diet season.

The company announced in February that it had begun "gently" to recruit members at the beginning of the year, sending its stock in tank. In response, Weight Watchers said it would look more at the icon of weight loss and about the board member, Oprah Winfrey.

The company launched in late April a new TV commercial featuring Winfrey promoting the app. Winfrey is also featured in the spring campaign, where she surprises members with a video call to congratulate them on their weight loss.

"Who better could surprise someone than Oprah?" Weight Watchers CEO, Mindy Grossman, said in an interview.

Weight watchers realized that he needed to explain the new brand more clearly after a slow start this year, Grossman said in an interview. The company has conducted more research and selected "WW: Weight Watchers Reimagined" and "WW: The New Weight Watchers". He touted the science behind his program, advertising more as a sustainable option.

Subscribers at the end of the period were up almost 1% from the same quarter of the previous year. However, Weight Watchers attributed this increase earlier this quarter with more members than last year, offsetting the "declines in hiring" this quarter.

More than two-thirds of Weight Watchers' 4.6 million members are digital subscribers. The number of participants in Weight Watchers' traditional meetings dropped by 10% from the same quarter of the previous year. Grossman told analysts at a post-profit call that the company is focusing on improving the meeting experience for people to come back.

Sales of Weight Watchers branded products dropped by 29% during the quarter, due to the reduced number of members attending meetings, where new members generally buy more measuring cups, food items and more. other articles, said Finance Director Nick Hotchkin.

Weight Watchers recorded a loss of $ 10.7 million, or 16 cents per share, in the first quarter, compared to a profit of $ 39.1 million, or 56 cents a share, a year earlier. Analysts expect the company to lose 26 cents a share, according to Refinitiv's average estimates.

Net sales declined 8.5% to $ 363.2 million, below analysts' estimates of $ 365.9 million.

The company has increased its earnings guidance for the full year, from 1.25 to 1.50 USD between 1.35 and 1.55 USD per share. He reiterated his revenue forecast of about $ 1.4 billion.

Weight Watchers shares slipped nearly 48% this year.