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The Oprah Effect looks poised to captivate the financials of WW International (WW) in the early half of 2020.
“Ticket sales are tremendously strong,” WW International CEO Mindy Grossman tells Yahoo Finance of the upcoming WW Presents Oprah’s 2020 Vision: Your Life in Focus tour that kicks off in early 2020. The tour will feature WW International —aka Weight Watchers — spokesperson and board member Oprah Winfrey. She will tour the country to discuss her health journey and dialogue with experts on how to live healthier lifestyles. Oprah will also sit down for one-on-one interviews with currently unnamed celebrities to chat about health.
Oprah hasn’t been on a tour like this since 2014.
The first day-long event will kick off Jan. 4 (just in time for New Year’s resolution season) in Fort Lauderdale, Fla. and end March 7 in Denver, Colo. Tickets don’t come cheap: they are currently listed at $299.95 a pop on TickerMaster for the Feb. 8 event at the Barclays Centers in New York City (which conveniently has a Weight Watchers restaurant inside of it).
For WW International, the rabid fanfare around Oprah’s tour is expected to bring an influx of new subscribers in 2020. These new subscribers will be greeted with Weight Watchers new diet plan, which is set to be released in the coming weeks. Grossman didn’t share too many details on the new plan, except to say it will feature great customization. No price increases are planned.
Apparently, the short-term minded Wall Street is choosing to ignore the potentially lucrative money-making tour for WW International and is focusing on the company’s near-term financials.
Shares of WW International fell about 13% in after-hours trading on Tuesday despite a generally strong third quarter. Earnings came in at 68 cents a share, beating analyst projections for 66 cents a share. Net sales of $348.6 million fell short of forecasts for $353 million.
The number of subscribers rose 6% year-over-year to 4.4 million and retention rates remained at record levels. Wall Street analysts on a conference call with Grossman appeared to be a bit worried about the slight sequential decline in subscribers and continued weakness in Weight Watchers’ studio business.
Oprah Effect people. Oprah Effect. It’s coming.