Aug. 5, 2015 - Q2 2015 revenues were $309.8 million, down 22.1% (16.5% on a constant currency basis) versus the prior year period, with total paid weeks down 17.6%.
"In the second quarter, our member recruitment trends improved, particularly in North America where Online sign-ups were positive year-over-year," commented Jim Chambers, the Company's President and Chief Executive Officer. "Late this year, we will be launching a significant and comprehensive program innovation in all of our major markets that we believe will return the Company to recruitment growth."
Total revenues for 2015 are now expected to be $1.15 billion. The company did say that it's "Lose 10 lbs. on us" promotion was successful as a way to create buzz and provide an "invitation" to the WW program. The company has a $150 mill. cash balance and expects this to grow to $250 mill. by year-end due to a $48 mill. line of credit it can tap.
See the complete press release, with financial tables, here:
Yes, things improved, a little bit in Q2. But let's not pop the champagne yet. The North American operations were still down a hefty 18.4% and online revenues were down 17.5%. That's a pretty strong decline. We don't know what the new Q4 Earth-shattering program change will be. We still don't know who's running NACO since Lesya Lysyj left. We don't know how happy/unhappy the 10,000 group leaders are. Did the stock analysts ask questions about these topics? Of course not. And we still have the same out-of-touch CEO and top management. And no new retail partners. A 20% decline for the year? Has the bleeding stopped? We don't see it yet. Yes, the "lose 10 lbs. on us" promo was successful. Why wouldn't it be. It was FREE. Let's remember that. The tough part is getting people to PAY for WTW programs.