Shares of WW International (NASDAQ:WW), a global wellness company and well-known weight management program, jumped over 20% during trading Wednesday before settling to a 12.2% gain, after the company released first-quarter results.
WW International sales jumped 10% to $400 million, right at levels analysts estimated. WW lost $0.09 per share during the first quarter, an improvement from the prior year's $0.16 loss per share and well ahead of analysts calling for a $0.23 loss.
Management noted subscriptions were up 9% to 5 million subscribers compared with the prior year, which was good enough to set a first-quarter record. "Our business had a very strong start to the year, driven by the successful launch and marketing of our new myWW program and increased awareness from the WW Presents: Oprah's 2020 Vision tour," said CEO Mindy Grossman.
WW International has proved more resilient to the sell-offs seen in restaurant, transportation, and entertainment industries, among other hard-hit areas. But management noted that the company wasn't immune and that it saw negative impacts from COVID-19 beginning in mid-March. Now it will redirect its focus, as many businesses across the nation have, to bolstering its liquidity and implementing $100 million in cost savings.
WW International showed some solid momentum during the first quarter, but investors would be wise to take today's 12.2% pop with a grain of salt since the full damage from COVID-19 will show up in the second quarter.