Weight Watchers International, Inc. (NYSE:WTW) reported a 16 percent decline in its second quarter earnings as the number of paying members decreased. The weight management company earned $1.15 per share or $64.9 million, down from $1.36 a share or $77.5 million in the corresponding quarter last year. Revenues also declined 4 percent to $465.1 million. The company also announced the departure of CEO David Kirchhoff, reports Matthew Rocco of Fox Business.

Weight Watchers

Weight Watchers International, Inc. (NYSE:WTW) said its Q2 earnings were hampered by a $20 million or 24 cents a share debt-refinancing charge. Without one-time charges, earnings stood at $1.39 per share. Despite the decline, Weight Watchers International, Inc. (NYSE:WTW)  earnings beat Wall Street expectations. Analysts were expecting only $1.11 per share.

The company said that its gross margins increased by 1.4 percent from 31.7 percent to 33.1 percent. Weight Watchers International, Inc. (NYSE:WTW)  said that its North America meeting revenues declined 7.3 percent, total paid weeks were down 3.5 percent, meeting paid weeks plunged 10 percent while overall attendance skidded 14.6 percent from last year. Internet revenues remained solid with 6.6 percent growth during the quarter.

Weight Watchers lowers full year outlook

Weight Watchers International, Inc. (NYSE:WTW) cut its full year earnings outlook from $3.60-$3.90 to $3.55-$3.70 a share. Analysts polled by Thompson Reuters were expecting $3.72 in earnings for the full year. Weight Watchers International, Inc. (NYSE:WTW) ‘s chief financial officer Nick Hodgkin said in a conference call that in its previous forecasts, the company had expected recruitment trends to improve. However, the reality is entirely opposite. Hodgkin said he expects this trend to continue through this year. The company’s revenues have also been hurt by weak enrollment due to fierce competition.

James Chambers appointed as new CEO

The company said that CEO David Kirchhoff stepped down on July 30 to pursue new opportunities. He has been at the helm for more than six years. President and COO James Chambers, who joined the firm in January this year, will step into the shoes of Kirchhoff. David Kirchhoff praised Chambers in a statement, saying that he has tremendous leadership capabilities. Chambers brought a new perspective to the company’s business and future opportunities.

Weight Watchers International, Inc. (NYSE:WTW) shares tumbled 19.39 percent to $37.91 at 10:13 AM EDT.