How Weight Watchers' Parent Just Became the Newest COVID-19 Stock
The COVID-19 pandemic has forced many people to stay at home. While many stocks have benefited from the growth of the stay-at-home economy, this reflects lifestyle changes of their consumers. People have been ordering in food and binging Netflix, generally being couch potatoes. WW International, Inc. (NASDAQ: WW) is looking to deal with the excess weight that some may have put on during this time at home.
Gyms largely have been closed during the coronavirus pandemic, and food delivery has exploded in popularity. Having that swimsuit season body has definitely dropped as a priority for many, while what’s for dinner has become increasingly important.
WW, formerly Weight Watchers, seems to be joining the list of coronavirus stocks as it is looking to service a largely unmet need during this time: a healthy lifestyle.
The weight loss company provided an update on Tuesday about its recent membership trends and studio reopening plans. The firm also announced added financial flexibility pursuant to an amendment in regards to its revolving credit facility.
Specifically, WW announced that subscribers as of June 6, 2020, increased 6% year over year to 4.9 million. This consists of 3.8 million digital subscribers and 1.1 million Studio + Digital subscribers.
The company pointed to digital member signup trends accelerating since mid-April on a year-over-year basis, driving digital subscribers to an all-time high.
WW also announced that a phased reopening of certain studio locations is now underway, and the company expects roughly 400 studios in the United States will be open by June 30.
On the financial side, the company increased its revolving credit facility commitments to $175 million, adding financial flexibility. WW’s market cap currently comes in at $2.0 billion.
WW International stock traded up about 17% on Tuesday, at $29.65 in a 52-week range of $9.75 to $47.19. The consensus price target is $29.65.