WeightWatchers shares plunge on Oprah Winfrey’s departure

WW International Inc. shares plunged after Oprah Winfrey said she’s preparing to leave its board, the latest blow to the obesity-focused company that’s struggling to stay relevant in the Ozempic era.

Winfrey, whose relationship with the company goes back nearly a decade, said Wednesday that she would not stand for re-election at WW’s May shareholder meeting. Shares of WW, also known as WeightWatchers, fell as much as 26% in trading before US markets opened Thursday.

Winfrey, who recently disclosed she was taking popular weight-loss drugs as a “maintenance tool,” said she would continue to work with WW “in elevating the conversation around recognizing obesity as a chronic condition.”

In 2015, WeightWatchers struck a deal with the influential talk-show host and businesswoman who had long struggled publicly with her weight. After WeightWatchers approached her, Winfrey bought a 10% stake and joined the board.

In commercials, she flaunted the 40 pounds she’d lost on the program and praised its flexibility, declaring “I have bread every day.” Her endorsement provided a much needed face-lift for an aging brand and gave the company credibility with Winfrey’s large fan base.

Today, WW is struggling to keep customers as weight-loss shots like Eli Lilly & Co.’s Zepbound and Wegovy from Novo Nordisk A/S soar in popularity. Last spring, WW abandoned its full-throated embrace of lifestyle change when it acquired a telemedicine startup to sell popular obesity drugs. The company also faced a backlash recently when it enlisted social media influencers for a marketing event.

WW also forecast 2024 revenue on Wednesday that missed Wall Street’s expectations, a sign its attempts to turn around several years of declining sales don’t appear to be working.