Weight Watchers International Inc. Sinks; Posts 12% Subscriber Decline

Weight Watchers International, Inc.'s (NYSE: WTW) third-quarter results beat expectations but the company appeared to continue along a path to perdition.Active subscribers declined 12.5 percent in the recent period to 2.9 million, while revenue fell by a similar percentage. The company forecast that 2014 North American revenue could decline by 20 percent.Weight Watchers fell more than 15 percent Thursday morning, trading recently at $24.98 a share. In the year to date, the stock is off more than 24 percent."Recruitment continues to be the biggest challenge in our business," Chief Executive James R. Chambers told investors in a conference call Wednesday. "Turning our recruitment around is our top priority for 2015."Although Chambers expects 2015 "will be an inflection point for our business" as recruitment starts to grow, he added that "I think I'd be foolhardy to try to estimate" growth numbers.The company is banking on on-line and other initiatives along with tweaks to its weekly group meetings format.It's also hoping to tap subsidies offered to by health insurers for programs addressing weight loss, exercise, quitting tobacco and the like.Chambers said Weight Watchers is in "active discussions" with insurance companies and expects to announce at least one deal next year."Meaningful incremental healthcare revenue" is expected in 2016.