WW International Inc., which offers weight loss programs, rose nearly 11% in trading after its quarterly report was released on Feb.26. The stock increased because financial indicators were higher than expected. On Monday, the company’s shares gained by 6.04%, reaching a low of $28.84 before ending the day at $31.41. 2.91 million shares were traded during the trading session, representing a -54.8% decline from the average session volume of 1.88 million shares. WW closed the last session for $31.27.
Despite a significant contraction in business, WW International still saw an increase in online orders due to the pandemic. WW International added 4.4 million new subscribers in the last quarter, a record amount, thanks to the diversification of sales channels. More than 3.7 million people subscribed to digital services, a 24% increase.
Despite fewer people losing weight, revenues dropped 3 % to $ 323.4 million, well below Wall Street’s forecast. Due to reasonable costs resulting from the sales structure’s transition to a digital channel, the adjusted gross margin jumped from 52.7% to 61.2% during the quarter. Increases in adjusted operating income were $ 66.3 million from $ 66 million. Earnings per share fell to $0.39, but analysts’ estimates were above this figure.
Even in the face of challenging conditions, WW International’s innovative platform continues to grow subscribers. Solutions offered by the company support healthy lifestyles, and subscriber retention is high. Due to the changing business environment, WW International must strengthen its position in e-commerce and position itself as one of the leaders in weight loss programs. One of the company’s owners is the well-known TV personality, Oprah Winfrey. She has been supporting WW International for many years.
Despite the difficult start to the year, the company expects strong sales in the second half of 2021. For WW International, January is traditionally the month of highest sales. This year’s pandemic had a bit of an effect on the demand for such programs, so the demand was slightly lower.