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NutriSystem Reports Q4 & 2015 Year’s Results

Feb. 25, 2015 – NutriSystem reported strong results again for the year–a combination of increased revenues per client and longer length of stay, coupled with moderate price increases. The company also continues to innovate via new products and programs such as the Turbo 10 plan and Shake 360. Despite this, the market battered its stock price in 2/26 over concerns over a weaker than expected Q1 2016.

Dawn Zier, President and Chief Executive Officer, stated, “I am very pleased to report our second year of double-digit revenue growth. In 2015, we continued to strengthen our business by investing in new product innovation, enhancing the customer experience, and driving strong execution. For 2016, we expect to deliver our third consecutive year of double-digit revenue growth, fueled by the strength of our direct-to-consumer business and increased demand for our programs.”

Revenues in 2015 were up 15% to $462.6 million, and gross margin stood at 51.5%. Guidance for 2016 is for revenues of $505-525 million. Q1 2016 revenues are expected at $148-158 million.

Marketing spend represented 26.8% of sales. The firm had $118 million in reactivation revenues in 2015 (+7%). The retail channel revenues were up 28% to $35 million and 2016 sales are expected to remain stable due to some Walmart shifts in product placement.

The company says that 50% of clients are choosing the premium frozen food line (Uniquely Yours). In January, the firm introduced a DASH diet compliant program. The new Shake 360 product is geared for younger health conscious clients, beyond just weight loss.

Marketdata Commentary

We think that NutriSystem is hitting on all cylinders, and continues to innovate, with further growth and strong management and cost controls in place for 2016. The addition of Shake 360 and the South Beach Diet brand (in 2017) can only help. No major problems. The reaction by the stock market o 2/26 is not warranted, due to a temporary issue with high ad rates in early Q1.

Full details and financial tables can be found here:


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