The company already had been inching closer toward becoming a lifestyle brand over the previous few years.
nevertheless the 61-year-old Grossman is usually extending its completely new wellness mantra into everything the company does: wellness-themed Caribbean cruises, cookware along with also removing artificial sweeteners via its line of snacks. which’s adding a rewards system with WW swag along with also prizes via trendy names like Rent the Runway along with also ClassPass to keep people engaged.
So far, these modifications are paying off. More people are subscribing to WW at which point than ever before along with also they’re staying with the program longer. Wall Street has rewarded the company, sending its stock cost to a record intraday high of $105.73 on June 20. Its shares have tumbled to $68 a share since then, nevertheless the stock is usually still up by more than 50 percent which year, along with also the company carries a market value of $4.5 billion.
“Everything we try along with also do, I try to look through the lens of we need to be surprising yet familiar,” Grossman told CNBC in an interview which month at WW’s headquarters. “We will never not celebrate along with also believe which our heritage along with also everything we do is usually important. So we’re not going to take a sharp left, nevertheless we have to be relevant. We have to understand which people need different things.”
Executives are targeting $2 billion in annual revenue by the end of 2020. Last year, revenue reached $1.31 billion, up 12.2 percent via $1.16 billion in 2016. They want to add completely new members along with also improve retention to fuel the growth.
WW needs to keep the momentum alive to convince shareholders which can achieve these goals.
Investors quickly soured in August when the company said the number of subscribers slipped to 4.5 million at the end of June via 4.6 million three months before. The company’s shares fell nearly 15 percent. Some members want Weight Watchers to stick to weight-loss programs.