Oprah’s tour drove Weight Watchers membership to a record, but hurt guidance

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Look, sending Oprah on a nationwide tour with her celebrity friends is expensive.

WW International Inc., known to many as Weight Watchers, continues to benefit from its relationship with Oprah Winfrey, whose sold-out 2020 Vision tour is credited with driving subscriptions to a record 4 million-plus.

The Vision tour, which includes a full day of events and has had guests like Lady Gaga and Michelle Obama, just wrapped up a stop in San Francisco, Grossman said on the call late Tuesday. For the first quarter, Nicholas Hotchkin, WW’s chief financial officer, said direct tour revenue is expected to be about $15 million, with up to $20 million in expenses.

Even as SunTrust Robinson Humphrey analysts acknowledged the “improved recruiting trends” and the “strong initial response” to the new, more personalized “myWW” program, analysts said “it is also worth pointing out that guidance includes a $5 million loss from the Oprah tour.”Watch: How virtual reality can help treat mental health conditions

 

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