WW Worldwide Inc. launched its PersonalPoints Program all over the world on Monday, the corporate’s newest weight administration program and the initiative it hopes will flip round third-quarter income and revenue declines.
The PersonalPoints Program provides individualized plans which can be supposed to assist members shed some pounds and kind wholesome habits. The system updates the corporate’s Factors system that helps members observe calorie consumption and different weight loss plan information.
WW
WW,
previously Weight Watchers, previewed the brand new program throughout its third-quarter earnings announcement last week. The corporate reported a income miss and a 4.3% decline in subscribers.
“In an atmosphere that was troublesome to foretell, member recruitment slowed greater than we had anticipated through the quarter,” stated WW’s Chief Monetary Officer Amy O’Keefe in a launch assertion.
“With the launch of our progressive new meals program and our plans for the upcoming winter season, we consider we now have the precise playbook to drive worthwhile development in 2022.”
On the earnings name, Chief Govt Mindy Grossman stated the corporate will put extra funding in fourth-quarter advertising and marketing to advertise the brand new program.
Grossman, who joined WW in 2017, will lead the corporate via the launch of the brand new program and the winter 2022 season after which can be stepping down from her position.
“The shifting shopper behaviors round weight reduction prioritization over the past a number of months has resulted in 2021 being a more difficult 12 months than we anticipated; nevertheless, it under no circumstances diminishes our enthusiasm and confidence in our 2022 meals program innovation and the potential it has to drive vital indicators of momentum in January, the time of the 12 months when many individuals concentrate on their targets for the 12 months forward and reprioritize their well being and wellness,” Grossman stated on the earnings name, in keeping with a FactSet transcript.
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The corporate says it’s also seeking to jumpstart its licensing enterprise, with a recently-launched line of breads now accessible in 400 Walmart
WMT,
shops.
“It’s all about 2022 now,” observe D.A. Davidson’s Linda Bolton Weiser within the group’s newest observe on WW.
Weiser notes the corporate’s inventory rise in anticipation of the brand new program.
The inventory closed up 6.2% on Friday, and rose one other 5.9% on Monday. The inventory has gained 17% for the month up to now.
D.A. Davidson charges WW inventory purchase with a $30 worth goal.
“We consider that WW might want to reveal that its new meals innovation can drive an inflection in digital subscription development to unlock significant share worth upside,” wrote UBS analysts in a observe.
Analysts observe that the digital subscriber quantity slipped 2.8% through the quarter to three.7 million. Complete subscribers on the finish of the interval was 4.5 million, with the remaining 800,000 subscribers taking part each digitally and in workshops.
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“Wanting forward, we anticipate to finish 2021 with a year-over-year decline in subscribers, which given the character of our subscription enterprise mannequin, interprets right into a income headwind of roughly $25 million getting into 2022,” O’Keefe stated on the decision.
UBS charges WW inventory impartial with a $21 worth goal, down from $26.
WW inventory has tumbled 16.6% for the 12 months up to now whereas the S&P 500 index
SPX,
has gained 24.6% for the interval.
