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NEW YORK ( TheStreet) -- There are big problems at Weight Watchers (WTW - Get Report), Jim Cramer told Debra Borchardt at TheStreet.com Thursday. He said the company's management has been wrong about what its customers want for a long time and now has big execution problems.
Cramer said the issue is not that people aren't willing to spend money to lose weight in a tough economy, as Weight Watchers' management claims. It is that they're not willing to spend money on Weight Watchers.
That's a big distinction, said Cramer, as it's clear the company's website transformation and new spokespeople simply aren't resonating with customers. People don't stop trying to be healthy just because the economy gets bad, he argued. They're just more discerning on where they spend their money.Cramer said investors have to avoid Weight Watchers' stock for at least a few quarters, or until management can prove the company has regained its footing with its customers. Watch the full Cramer interview
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