After Oprah Winfrey announced her departure from the board of WeightWatchers International for later this year, leaving a nearly decade-long career as a director, shares of the New York City-based company that offers weight loss and fitness services dropped 25.6% in premarket trading Thursday.
Earlier this week, the iconic TV show host told the WW International she will not apply to re-election at its annual shareholder meeting in May. The real reason was not revealed, but, according to a statement, “her decision was not the result of any disagreement” or “any matter relating to the company’s operations, policies or practices”.
According to Sima Sistani, CEO of WeightWatchers, “Oprah is an inspiring presence and passionate advocate both for our members and for society at large, in elevating the conversation around weight health. While I and the rest of our directors will certainly miss her in our board meetings following the end of her current term, she remains a strong strategic voice and collaborator”.
Winfrey will donate part of her shares to the National Museum of African American History and Culture. According to LSEG data, it accounts for 1.13 million shares worth $6.34 million as of January 1. The TV show host entered the company board in 2015 raising its visibility in the market immediately.
In December,Winfrey admitted to People Magazine that she has used, and perhaps is still using–prescription medication to lose weight but she did not specify which drug she was taking, creating a conflict of interest with other companies whose medications are very popular among VIPs, like Ozempic by Novo Nordisk and Wegovy by Eli Lilly.
Recently WW International’s pharmaceutical competition has skyrocketed, gaining more popularity as more and more public figures turned to drugs for weight loss. Weight Watchers, whose program relies on diet, has been losing popularity as a result. In admitting that her recent weight loss came about as a result of pharmaceutical intervention, Winfrey lost credibility as spokesperson and Board member for Weight Watchers.
Analyst revenue expectations were around $896.2 million, but on Wednesday they decreased from $860 million to $830 million.
