WeightWatchers shares drop as Oprah Winfrey decides to exit board (updated)

USANA Health Sciences

29/02/2024 12:58

(Updates shares in paragraph 2 and adds analyst comment in
paragraph 7)
       Feb 29 (Reuters) - Shares of WW International  WW.O ,
also known as WeightWatchers, took a pounding on Thursday after
the company disclosed that media icon Oprah Winfrey will exit
its board later this year. 
    The loss of the hugely popular public figure from its board
at a time when WW is struggling to turn a profit sent its shares
down 25.6% to $2.84 in premarket hours. They have more than
halved in value so far this year.
    The company said Winfrey, who has been a board member since
2015, will donate her WW shares to the National Museum of
African American History and Culture.
    She owned 1.13 million shares worth $6.34 million as of Jan.
1, LSEG data showed.  
    Winfrey's donation would help "eliminate any perceived
conflict of interest around her taking weight loss medications,"
the weight-loss services firm said on late Wednesday. 
    The talk show host said last year that she uses prescription
medication to manage her weight. 
    Shares of the New York City-based company have also been
hurt due to "exacerbated concerns" around its growth prospects
and liquidity, Barclays analyst Stephanie Davis said.
    The stock had more than doubled in value last year on hopes
for a boost from its acquisition of telehealth platform
Sequence, which marked its entry into the lucrative market for
prescription obesity drugs, offered by Novo Nordisk  NOVOb.CO 
and Eli Lilly  LLY.N . 
    But the company's 2024 estimates somewhat dashed those
hopes. It forecast revenue in the range of $830 million to $860
million on Wednesday, below analyst expectations of $896.2
million. 
    WW International has a lower forward price-to-earnings
multiple - a common benchmark to value stocks - of 13.55
compared to 17.21 for rival USANA Health Services  USNA.N . 

 (Reporting by Bhanvi Satija and Medha Singh in Bengaluru;
Editing by Shinjini Ganguli)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))