After nine years on the WeightWatchers board of directors, Oprah Winfrey announced that she is leaving the company. She also promised to contribute her financial interest to the National Museum of African American History and Culture from the weight-loss company.
WeightWatchers’ stock plummeted after Winfrey’s late-Wednesday revelation. The company’s stock fell 17% to $3.18 in early morning trade on Thursday after peaking at $40 in 2021.
Winfrey joining WeightWatchers in 2015 gave the weight-loss company a high-profile boost, with its shares more than doubling soon after the deal was announced. But in recent years, WeightWatchers and other diet companies have struggled amid a shift toward so-called GLP-1 drugs like Ozempic, which rely on hormones to control appetite and have helped people shed extra pounds.
The weight loss company, which was founded in the early 1960s, has seen its financial results deteriorate in recent years. Its revenue in 2023 tumbled almost 15% to $889.6 million from the previous year, while it lost $112 million.
Winfrey owns about 1.4% of the company’s shares, or about 1.3 million shares, according to financial data provider FactSet. At today’s stock price, that values her stake at about $4.1 million — a far cry from her initial investment of $43.2 million for 6.4 million shares.
+ There are no comments
Add yours