WW International Inc (the former Weight Watchers), Oprah Winfrey’s partner organization, lost 25% of its stock share value as customers lost interest in dieting in the summer months.
During last year’s lockdown, many took on the commitment to kick off excess weight, propelling the wellness and weight-loss market to an all-time high. However, starting from June 2021, the situation became totally different.
The global company (NASDAQ: WW) based in the US continues to lose subscribers seeking online, via-app, or in-person consultations and training to lose weight.
WW’s YoY (year-over-year) net income in July was down by a staggering 36.74%. In August, its price-per-share dropped by almost $10. So, what happened there? According to experts, this is the consequence of users returning to their pre-pandemic life.
Mindy Grossman, the president and CEO of WW Inc, explained that the users’ need for social reconnection made them lose 0.1 million subscribers in the second quarter, amounting to a 6.9% drop in revenue. This, in turn, took the company’s stock value down.
According to Grossman, this is an industry-wide phenomenon: The lifting of lockdowns and gradual reopening allowed people to again enjoy activities that left little time for exercise and dieting. That said, to say that Americans lost interest in eating healthy would be a massive understatement.
As the internet swelled with articles explaining why following a vegetarian diet can allegedly lower your chances of severe COVID-19 infection, customers turned to plant-based and vegan dishes, much to the delight of the most famous food-delivery services.
Unfortunately, we are on the brink of the latest surge in infections, which might bring on further lockdowns. On the other hand, this might turn the tables for WW International in the fourth quarter.