The company said Monday that it’s hunting for a new chief because James Chambers has made a decision to step down. He will also leave the company’s board of directors. He will also leave the company’s board of directors.
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In a statement, Chambers said he was proud of “the team’s accomplishments in returning the company to growth” and of striking a partnership with Winfrey.
Following Winfrey’s stake in Weight Watchers, the stock peaked at a closing high of $26.61 almost a month later.
Weight Watchers said on Monday that no one from inside the company, including Winfrey, was considered a candidate to replace Chambers. He took over as the company was struggling to recruit and retain paying members amid growing competition from free smartphone apps and gadgets to help track calories.
The board has established a committee that includes Winfrey to search for a permanent CEO.
Hotchkin, the CFO, said the company is “confident we will deliver revenue and earnings growth in 2016”.
For its second quarter ended July 2, the company reported flat revenue of $309.8 million, which fell short of the average analyst estimate of $318.5 million, according to FactSet. The company’s sales and net income have declined in every year since Chambers became CEO in 2013. For the full year, Weight Watchers raised the lower end of its range of expected profit, to between 90 cents and $1.05 per share.
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The former talk show queen announced last October that she had bought a 10 percent stake in Weight Watchers and would follow its weight-loss program. The stock was trading below $7 before Ms. Winfrey invested and surged above $25 last year, before receding this year.
