Weight Watchers shares dropped the most since their market debut more than 13 years ago, after the dieting company’s earnings forecast fell well short of analysts’ expectations. 
 
 The company has faced declining subscriptions and revenue as consumers migrate to digital methods for counting calories and keeping in shape. Weight Watchers International Inc. on Thursday reported that quarterly revenue had declined for the eighth straight period. 
 
 The stock fell 35 percent to $11.33 on Friday in New York, the biggest drop since the company’s initial public offering in November 2001. The shares had posted a 78 percent decline over the past three years through Thursday. 
 
 Weight Watchers said Thursday that it would seek to cut $100 million in costs and that Lesya Lysyj, its president of North America operations, would leave the company. 
 
 The company forecast earnings of 40 cents to 70 cents a share for this year, missing the $1.43 average of seven analysts’ estimates compiled by Bloomberg. The costs associated with a plan to “resize” aren’t reflected in the guidance, the company said. 
 
 Weight Watchers has attempted to remake its image this year with a new ad campaign and redesigned magazine introduced in January. 
 
 “They’re struggling to keep pace,” said RJ Hottovy, an analyst at Morningstar Inc. in Chicago. “Its changes in marketing, product and technology haven’t connected with consumers.” 
 
 ‘Disappointed’ 
 
 Chief Executive Officer Jim Chambers said the company’s turnaround would take longer than expected. 
 
 “I am disappointed that we are not yet where we hoped to be and our turnaround will take longer than anticipated,” Chambers said Thursday on a conference call. 
 
 Founded in 1961, Weight Watchers has built a system of dieting programs, food products and support centers for people seeking to slim down. 
 
 Meanwhile, with consumers paying more attention to how many calories they are burning from exercise or everyday activities, fitness gadgets have surged in popularity, with 51.2 million American adults using applications to track their health, according to Nielsen. That is making it harder for Weight Watchers to justify subscriptions starting at $20 a month, since activity trackers can be paired with free mobile apps that make it easy to analyze caloric input and output. 
 
 ‘Get Modern’ 
 
 “Weight Watchers really has to change what they’re offering -- they have to get modern,” said Meredith Adler, an analyst at Barclays. “People are just more digital now than they ever were.” 
 
 New York-based Weight Watchers has embraced activity trackers. Subscribers can use FitBit, Jawbone and the company’s own ActiveLink gadget to track diets and exercise. On the call, Chambers acknowledged that the company still had work to do to remake its image and offerings. 
 
 “I think you will see the Weight Watchers brand showing up differently going forward,” he said. 
 
 Weight Watchers’ membership declined 15 percent in the past quarter, to 2.51 million active subscribers. While profit, excluding some charges, matched analysts’ average estimate for 7 cents a share, revenue fell short of projections. Revenue declined 10 percent to $327.8 million in the fourth quarter, compared to an average analyst estimate of $334.3 million, according to analysts surveyed by Bloomberg. Last month, Weight Watchers was among the most-shorted stocks on the New York Stock Exchange. 
 
 Threat Downplayed 
 
 As CEO two years ago, David Kirchhoff said he didn’t see wearable devices -- along with social media and other technologies -- as a threat. Instead, they presented a chance for the company to enhance its methods, counseling and business model, he said on an earnings conference call in February 2013. 
 
 Three months later, on another call, Kirchhoff’s tone began to change: “In this cash-strapped environment, the sudden proliferation in popularity of free alternative offerings has created a surge of trial in these apps. The resulting impact is contributing to a challenging recruitment environment, similar to what we saw back in 2000 with the low-carb diet fad.” 
 
 In November, the battle appeared all but lost. 
 
 “Frankly, we were slow to innovate and add value to our products,” Weight Watchers Chief Financial Officer Nicholas Hotchkin said at an investor conference on Nov. 11. “We were particularly susceptible to the proliferation of free apps and activity monitors.” 
 
 Corporate Deals 
 
 The company’s best bet is to focus on providing weight-loss programs for corporations and health plans, which have been seeking ways to keep employees healthy and insurance costs low, according to Hottovy. This week, Weight Watchers announced a new partnership with health-care company Humana Inc. to offer diet programs at discounted rates on certain health insurance plans. 
 
 “The largest growth opportunity for this company is partnering with corporations and health plans,” Hottovy said. “That’s where they’ll really have a more comprehensive offering. That’s something Weight Watchers can provide that calorie counting apps maybe can’t.” ||||| CLOSE USA TODAY's Shannon Rae Green and Nathan Bomey talk about Oprah Winfrey's purchase of 10% of Weight Watchers. USA TODAY 
 
 Oprah Winfrey's cable network has scrapped a reality show about the father of 34 children by 17 women. (Photo: Todd Williamson, WireImage) 
 
 Oprah Winfrey has helped to significantly fatten up Weight Watchers International's market value. 
 
 The diet company's stock -- which had been slumping for the last few years -- soared after the firm announced on Monday that Winfrey would take a 10% stake. The billionaire media mogul, who will also receive options to acquire an additional 5% stake, is joining the Weight Watchers board as well. 
 
 Weight Watchers (WTW) concurrently announced an expansion of its brand beyond a pure focus on weight loss to a general emphasis on healthier, happier living. 
 
 Investors sent the stock up 105% to close at $13.92 on Monday. The company's stock had lost nearly 73% of its value in 2015, prior to the news of Winfrey's investment being publicized. 
 
 I believe in the @weightwatchers program so much I decided to invest, join the Board, and partner in #wwfamily evolution. — Oprah Winfrey (@Oprah) October 19, 2015 
 
 "Weight Watchers has given me the tools to begin to make the lasting shift that I and so many of us who are struggling with weight have longed for," Winfrey said in a statement. "I believe in the program so much I decided to invest in the company and partner in its evolution." 
 
 Winfrey bought her shares at $6.79 apiece for a total investment of $43.2 million, according to a Securities and Exchange Commission filing. 
 
 Analysts expect Winfrey to use the considerable influence of her brand and media presence — including her well-known knack for promoting health-related initiatives — to drive interest in Weight Watchers meetings and products. 
 
 The TV host, actor, producer and publisher "will not just bring attention to the stock, but will accelerate sales and profit recoveries" as Weight Watchers benefits from "free publicity and media savvy," S&P Capital IQ analyst Efraim Levy said in a research note. 
 
 In addition to her role as a board member, Winfrey, who has long shown an interest in health issues and dieting programs, will serve as an adviser to the company. 
 
 "Through our conversations, it became clear that there is tremendous alignment between Oprah's intention and our mission," Weight Watchers CEO Jim Chambers said in a statement. "We believe that her remarkable ability to connect and inspire people to realize their full potential is uniquely complementary to our powerful community, extraordinary coaches and proven approach." 
 
 CLOSE Jefferson Graham looks at how Weight Watchers is competing with calorie counting apps like MyFitnessPal and LoseIt to attract digital audiences, on #TalkingTech. By Jefferson Graham 
 
 A spokesperson said Chambers was not available for an interview. 
 
 Nicole Nichols, a spokeswoman for the Oprah Winfrey Network (OWN), said in an email: "There are no current plans to promote through OWN or O Magazine, but that could change down the road." 
 
 Weight Watchers has struggled to keep up as dieting tools have increasingly gone high tech. Its total revenue fell 19% from $1.84 billion in 2011 to $1.48 billion in 2014. That included declines in meeting revenue, product sales and licensing fees. 
 
 About 800,000 members attended Weight Watchers meetings in 2014, down 38% from 1.3 million members in 2011. The number of Weight Watchers meetings has fallen about 20% from 45,000 to 36,000 during that period. 
 
 Those meeting declines come as an increasing number of dieters count calories with smartphone apps and monitor their physical activity with high-tech devices. The company, which offers digital tools for users, has also invested in new services such as one-on-one health advice delivered advice through email, text-messaging and phone calls. In addition, it created personalized online accounts that sync with activity-tracking devices such as FitBit. 
 
 About 1.5 million people subscribe to the company's online products. 
 
 As for Winfrey's deal, it includes the option to buy an additional 5% of the company for $6.97 per share. She can't sell any Weight Watchers stock for the first two years, according to deal terms filed with the SEC. She can sell up to 15% in the third year of her investment, up to 30% in the fourth year and up to 60% in the fifth year. 
 
 In five years she would have the right to sell all of her shares. 
 
 Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey. 
 
 CLOSE Oct. 19 -- Bloomberg's Julie Hyman updates the latest markets news. She reports on "Bloomberg Markets." Bloomberg 
 
 Read or Share this story: http://usat.ly/1LFQIC8 ||||| CLOSE Happy Hour isn't dead when you're on a diet! Weight Watchers is making a low calorie wine! Buzz60 
 
 Weight Watchers has added more than 200 new items to its list of foods that members don't have to track. It's part of the new WW Freestyle program. (Photo: Eugene Gologursky, Getty Images for Weight Watchers) 
 
 Dieters expect to eat foods like celery and sugar-free gelatin in unlimited quantities. But now they can throw in fish, skinless chicken breast and non-fat yogurt, too. 
 
 Weight Watchers, the preeminent weight-loss plan in the U.S., announced Monday that it's adding more than 200 items to its list of foods that have zero SmartPoints, the rating system the company uses to help members monitor and control what they eat. 
 
 The news comes less a month before people traditionally make New Year's resolutions, which often include losing weight. 
 
 Weight Watchers emphasizes that this change, part of its new WW Freestyle program, is about healthy eating and creating an easy system to adhere to. 
 
 However, making it easier for dieters to keep track of what food they eat could also bring back lapsed members and attract new people to the program. For example, under the previous system, people eating a lunch of skinless chicken breast and lentils would have to calculate how many points were on their plates, but they don't have to anymore. Those foods are now freebies. 
 
 "In today's world, they want as much simplicity as possible, as much freedom as possible, and they want something that works into their life," CEO Mindy Grossman said of potential members. "It will attract Weight Watchers members that see this and say, 'This looks like something I want to come back to.'" 
 
 That could translate into earnings for the company. The New York-based weight-loss business has benefited from the so-called Oprah effect. TV mogul Oprah Winfrey, who's faced weight problems herself, bought a 10% stake in the company in 2015 and has repeatedly praised Weight Watchers publicly. The company initially got a boost from her, but then faltered in 2016. The next year, it bounced back. 
 
 "Simpler. More livable. Love that I don’t have to count so many of my favorite foods, like corn and beans," Winfrey said in an e-mail. "And what would I like to see improved? Scientists: Please find a way to make zero-point bread in my lifetime!" 
 
 In its third-quarter earnings report on Nov. 6, Weight Watchers beat Wall Street expectations and posted net revenue of $323.7 million, compared with $280.8 million during the same period in 2016. Net income rose to $44.7 million from $34.7 million a year earlier. 
 
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 Close to 71% of U.S. adults age 20 or older are overweight or obese, according to the Centers for Disease Control. 
 
 To some, Weight Watchers has a reputation for being out-dated or stodgy -- a weight-loss system that had its heyday decades earlier. 
 
 Founded over half a century ago, the company faces competition from other old-school diet plans, like Jenny Craig and Nutrisystem, as well upstarts such as calorie-counting apps, juice cleanses, Fitbits and exercise crazes, like Pilates and spinning. 
 
 Weight Watchers had 3.4 million subscribers as of the third quarter -- the highest in half a decade. The company declined to release subscriber information for the years before 2012, but said that was the year it had the most subscribers ever. 
 
 All vegetables and fruits became zero points in 2010, according to Weight Watchers. 
 
 Alex Fuhrman, a senior research analyst at the Minneapolis-based institutional broker-dealer Craig-Hallum, said he thinks Weight Watchers wants to copy that success of the early 2010s by again changing point values of foods. 
 
 CLOSE USA TODAY's Shannon Rae Green and Nathan Bomey talk about Oprah Winfrey's purchase of 10% of Weight Watchers. USA TODAY 
 
 "You're not going to have to break out the kitchen scale every time you want to have chicken," Fuhrman said. "It’ll make the program a lot easier to follow and get more people off the hump and signing up to join." 
 
 "Part of Weight Watchers' appeal," he continued "and part of what’s helped Weight Watchers to stand out in the diet landscape is they advertise nothing is off limits." 
 
 Last New Year's, 29% of American adults resolved to eat healthier and 24% resolved to lose weight, according to the Harris Poll. 
 
 Weight Watchers stock closed Friday at $43.15, down 2.1% for the day. 
 
 Follow USA TODAY reporter Zlati Meyer on Twitter: @ZlatiMeyer 
 
 Read or Share this story: https://usat.ly/2nsniU8
– The booming fitness-tracker trend is making it easier for people to track their activity and therefore lose weight, which is essentially what Weight Watchers has been trying to do since 1961. The company has encouraged subscribers to use devices like Fitbit and Jawbone—and even has its own ActiveLink device. But while use of such devices soar (VentureBeat in November pointed to research that estimated 19 million trackers were in use in 2014, with that number slated to triple by 2018), Weight Watchers' membership keeps falling. It sank 15% in Q4 to a hair over 2.5 million subscribers, who pay a minimum of $20 for the service; Bloomberg points out that once a user invests in a tracker, the associated tracking apps are free. In early 2013, Weight Watchers didn't seem concerned by wearable devices. It acknowledged a challenge "similar to what we saw back in 2000 with the low-carb diet fad" a few months later. Now it's taking a hit: Revenue slid 10% to $327.8 million in the fourth quarter, and as of yesterday its share price had declined 78% over three years. It expects profit of 40 cents to 70 cents per share in 2015, while analysts had estimated profit of $1.43 per share, the Wall Street Journal reports. The company has announced a deal with Humana to bring discounted diet programs to certain health insurance plans, which an analyst suggests is the company's best option, but it will also undergo cost-cutting measures, including layoffs, to save $100 million. North American President Lesya Lysyj has already been let go.