Rebranded WW Debuts New Diet Program Ahead of Key Sign-Up Season

(Bloomberg) -- WW International on Monday rolled out its long-awaited new program, myWW, today ahead of the post-holiday diet season, offering members a customized approach to weight management by matching them to one of three plans based on a personal assessment.

The new plans are built on WW’s SmartPoints system and ZeroPoint foods, and are tailored toward helping individuals lose weight after accounting for specifics such as eating habits and activity rates. The company, formerly known as Weight Watchers, began to re-brand away from a weight loss company to a holistic wellness company in 2018 under the leadership of new CEO Mindy Grossman.

The launch of myWW comes just in time for WW’s key subscriber season. The company generally experiences its highest subscriber rates in the first quarter due to the post-holiday diet season and rates generally fall off through the rest of the year. This year was the first time in the history of the company where the second quarter end-of-period subscriber rate matched the first quarter.

Read More: WW Sinks as ‘Slight’ Sales Miss Disappoints Street After Run Up

Shares of the company dropped last week after it reported a smaller third quarter subscriber base and revenue that missed estimates. The stock had been on a rebound in recent months, nearly doubling from lows below $20 in June. Still, the shares are well off the record high of $106 a piece they commanded in June 2018.

The program will be a key driver of future subscriber growth, say Wall Street analysts, nine of whom recommend holding the stock, while four rate it a buy. Before official details of the plan were released, Sidoti & Co. analyst Frank Camma said he believed WW would be well positioned for growth in 2020, citing the new program and the marketing push.

“The program is both unique enough from the previous program to feel new, but it still carries elements of the old program, including the concepts of ‘SmartPoints’ and ‘ZeroPoints,’” Keybanc analyst Edward Yruma wrote in a Nov. 6 note, “This customization of the ZeroPoints list offers more flexibility from the existing, and arguably more restrictive, Freestyle program.”

Alongside the myWW program refresh, WW will hold an Oprah Winfrey tour during the diet season.

To contact the reporter on this story: Jarrell Dillard in New York at jdillard11@bloomberg.net

To contact the editor responsible for this story: Courtney Dentch at cdentch1@bloomberg.net

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