The operator of weight-loss programs expects its profit to be between 40 cents and 70 cents a share for 2015. However, that does not include costs of a plan for resizing the company.
Analysts had forecasted that earnings be as high as $1.37 a share.
Founded during the 1960s, Weight Watchers is now facing stiff competition from a number of new fitness and diet apps. The company is hurting as well from a trend by consumers away from cutting back on calories to programs of general wellness.
During the fourth quarter, the subscribers to the company’s online services and their meetings dropped by 15% to just over 2.5 million. James Chambers the company CEO said the execution of the company starting 2015 was not what he hoped for and he was disappointed that they had not reached where they wanted to be, as the turnaround would take longer than expected.
Aggressive steps were being taken by the company to change the marketing of the company to slash costs. The company announced that the $100 million program for cost savings would included cuts in jobs, but did not give any specifics as to how many or what jobs would be cut.
On Thursday, Weight Watchers International reported a loss for the fourth quarter of $16.1 million, compared to a profit of $30.8 million for the same period one year ago.
The company’s loss per share was 28 cents. Making adjustments for restructuring cost and costs for asset impairment, Weight Watchers said its earnings per share were 7 cents. Nevertheless, analysts were expecting profits to by 8 cents a share.
Revenue was down 10% to just over $327.7 million, with analysts expecting $332.6 million.