Weight Watchers collapses 10% after revenue misses

Weight Watchers shares fell by as much as 10% in after-hours trading on Thursday after the company reported second-quarter revenue that was short of analysts’ estimates.

The weight-loss-assistance company said it earned $310 million, but analysts were expecting $319 million according to Bloomberg.

Adjusted earnings per share matched forecasts at $0.46.

Weight Watchers said its number of subscribers rose 5% year-on-year during the quarter. The gains were strong in North America, but a slowdown in the UK and continental Europe dragged the total number of members.

Last October, Oprah Winfrey bought a stake in the company and joined its board. That lifted the shares 100% in a day and was expected to address a decline in active memberships amid increased competition.

The company’s shares had cratered 50% this year through Thursday’s close. This chart shows the drop in after-hours trading:

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