Weight Watchers International (NYSE: WTW) — the Oprah Winfrey Magic
Weight Watchers, founded in 1963, is based out of New York City. The company offers assistance in weight loss through several products and services. It has been struggling to increase the customer-base.
On Monday, Weight Watchers announced that Oprah Winfrey is taking 10% stake in the company and will be contributing in its marketing efforts, while the company tries to evolve from weight-loss focused to a healthier-lifestyle service — a substantially bigger and growing industry.
Weight Watchers wants to increase its appeal among the younger age-groups to become a house-hold name in healthier-lifestyle segment through apps and gadgets. However, the industry is marred with free content on the web and competition from companies like Fitbit (NSDQ: FIT), a wearable fitness devices manufacturer.
Winfrey’s involvement can certainly revive the brand; but, how users find it useful in the long-run will be reflected in the company’s top-line growth. In the next few quarters, along with its sales growth, it will be interesting in watching changes in potential earnings’ growth as well as balance-sheet health to see if it is an investment opportunity.