WeightWatchers CEO sends internal memo to employees as stock plummets amid Oprah exit
Sima Sistani tells WeightWatchers employees 'the stock price will take care of itself'
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WeightWatchers CEO Sima Sistani is trying to rally her team as the company's stock continues to take a beating following the announced departure of Oprah Winfrey from the board two weeks ago.
The CEO aimed to reassure employees with an internal memo dated Thursday and obtained by CNBC in which she said the company is in a healthy financial position despite what the headlines might suggest.
WeightWatchers announced on Feb. 28 that Oprah Winfrey will no longer be a member of its board. The media icon has served on the board since 2015. (Rich Polk/Golden Globes 2024/Golden Globes 2024 / Fox News)
WeightWatchers disclosed Winfrey's exit on Feb. 28, sending shares tumbling more than 20%. The stock price has fallen 50% over the past month and is down 74% year to date.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WW | WW INTERNATIONAL INC. | 0.95 | +0.07 | +7.95% |
WW International Inc.
"We do not believe the recent stock moves reflect the strength of our performance, outlook or the near term trade-offs we're making for our future growth," Sistani wrote, adding "we have strong liquidity and are not in a cash crunch."
Analysts have expressed concerns that WeightWatchers faces a threat from popular weight-loss-related medications like Novo Nordisk's Ozempic and Eli Lilly’s Mounjaro, as consumers flock to the drugs as an alternative to diet and lifestyle changes alone.
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Others have speculated that WeightWatchers shares have been hurt by concerns over its growth and liquidity.
WeightWatchers CEO Sima Sistani told employees the company will "prove the naysayers wrong" as the stock struggles following the announced departure of Oprah Winfrey. (Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
But Sistani pushed back against those concerns, saying the company has no maturities due until 2028 and is executing on a plan for achieving growth in several areas this year.
She vowed that WeightWatchers would "prove the naysayers wrong."
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"Turning around and totally transforming a business is not for the faint of heart!" Sistani told employees in her memo.
"As we stay focused on delivering for our members, the stock price will take care of itself," she continued. "The work you are doing matters and is setting us up for long-term success."
FOX Business' Daniella Genovese and Reuters contributed to this report.