May 2, 2017 - Management reported that: "In the first quarter, we delivered strong revenue growth and achieved a 16% increase in end of period subscribers versus the prior year period," said Nick Hotchkin, the company's CFO and Member, Interim Office of the CEO. "With a strong start to the year, we are raising our full year 2017 earnings guidance to a range of $1.40 to $1.50 per fully diluted share."
Revenues in Q1 2017 were $329.1 million. On a constant currency basis, Q1 2017 revenues increased 8.7% versus the prior year period.
End of Period Subscribers in Q1 2017 were up 16.0% versus the prior year period, driven by growth in all major geographic markets. Q1 2017 End of Period Meeting Subscribers were up 10.7% and End of Period Online Subscribers were up 20.1% versus the prior year period.
Total Paid Weeks in Q1 2017 were up 12.8% versus the prior year period, driven by growth in all major geographic markets. Q1 2017 Meeting Paid Weeks increased 7.7% and Online Paid Weeks increased 17.0% versus the prior year period.
Service Revenues in Q1 2017 were $261.5 million. On a constant currency basis, these revenues increased 8.5% versus the prior year period. This increase was primarily driven by revenue growth in North America and Continental Europe, which was partially offset by revenue declines in the United Kingdom.
Product Sales and Other in Q1 2017 were $67.6 million. On a constant currency basis, these revenues increased 9.3% versus the prior year period, primarily reflecting revenue gains in North America.
Operating Income in Q1 2017 was $30.2 million compared to $13.6 million in the prior year period. This increase was primarily driven by higher member volumes in the quarter versus the prior year period.
The complete Press Release, with financial tables, can be found at:
New CEO Hired - Mindy Grossman, Current CEO of Home Shopping Network, April 17th
The search for a new CEO to lead the company is over. Weight Watchers has hired Ms. Mindy Grossman, age 59, who had been the CEO of the Home Shopping Network (HSN). Grossman is stepping down as CEO of multichannel retailer HSN Inc. in St. Petersburg, FL on May 24 and will start work at Weight Watchers in July. Grossman will get an annual pay package that could total as much as $9.8 million including $1.2 million in base salary, a performance-based cash bonus and stock incentives.
Now that Weight Watchers has posted a strong 1st quarter, and looking forward to the July arrival of a new female CEO, things appear to be on the right track for the firm. This good news has certainly propelled the firm's stock price. Hopefully, Ms. Grossman,with an impressive retail background, can bring more innovation to the company, adding a female CEO's viewpoint to better understand the firm's mainly female client base, and continue the turnaround story.