Weight Watchers Stock Plunges 29%

Shares in Weight Watchers International plunged 29% Friday after reporting fourth-quarter earnings that saw a drop in subscribers.

Oprah Winfrey made an investment in Weight Watchers last fall and also starred in a new TV campaign for the company. It also launched a new SmartPoints system that helps users make better food choices and lose more weight.

Even with the changes, end of fourth quarter active subscribers for Weight Watchers were down 4.8%  versus the prior year. The company reported fourth quarter revenue of $259.2 million, down 20.9% from last year and a loss of $11.3 million.

“With the launch of Beyond the Scale and SmartPoints earlier this winter, we introduced an entirely new Weight Watchers program, which is resonating with consumers,” commented Jim Chambers, the Company’s President and Chief Executive Officer. “The partnership with Oprah Winfrey is off to a strong start. Our transformation momentum is building, with positive recruitments this winter season setting a solid foundation for revenue growth and increased profitability.”

The company said it had 2.3 million total subscribers at the beginning of January which included 998,000 meeting subscribers and 1,391,000 online subscribers.

For all of 2015, the company reported net income of $32.9 million. Revenues were $1.16 billion for 2015, down 21.3%.

Weight Watchers has headquarters in New York City.