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Weight Watchers Profit Slips 18 Percent In 1Q

The Associated Press

NEW YORK (AP) — Weight Watchers International Inc. said Thursday that its profit slipped 18 percent in its fiscal first quarter as restructuring charges and the stronger dollar's negative effect on overseas sales hurt the company's results.

Weight Watchers booked a profit of $47.3 million, or 61 cents per share, for the first quarter that ended April 4. That's down from $57.4 million, or 72 cents per share, a year ago.

The company noted, however, that its profit would have totaled 64 cents per share without one-time restructuring charges.

Revenue fell 11 percent to $390.6 million during the period.

Analysts polled by Thomson Reuters, who generally exclude one-time items, expected a profit of 61 per share on slightly higher revenue of $395.8 million.

"Our first-quarter results were consistent with our expectations and were significantly impacted by unfavorable foreign currency translation, which accounted for approximately three-fourths of our revenue decline versus the prior-year period and reduced our earnings per share by 5 cents," President and Chief Executive David Kirchhoff said in a statement.

Weight Watchers affirmed its full-year guidance for adjusted earnings of $2.50 to $2.75 per share. Analysts forecast a profit of $2.48 per share, on average.

Weight Watchers shares gained 39 cents to close at $26.45 on Thursday.