WeightWatchers 2012 Annual Report Download - page 29

Item 1A. Risk Factors
You should consider carefully, in addition to the other information contained in this Annual Report on
Form 10-K and the exhibits hereto, the following risk factors in evaluating our business. Our business, financial
condition or results of operations could be materially adversely affected by any of these risks. The following
discussion of risks is not all inclusive but is designed to highlight what we believe are the most significant risks
that we face. Additional risks and uncertainties, not presently known to us or that we currently deem immaterial,
may also impair our business, financial condition or results of operations.
Competition from other weight management industry participants or the development of more effective or
more favorably perceived weight management methods could result in decreased demand for our services
and products.
The weight management industry is highly competitive. We compete against a wide range of providers of
weight management services and products. Our competitors include: self-help weight management regimens and
other self-help weight management products, services and publications, such as books, magazines and websites;
commercial weight management programs; Internet, mobile and other electronic weight management
approaches; dietary supplements and meal replacement products; weight management services administered by
doctors, nutritionists and dieticians; surgical procedures; the pharmaceutical industry; government agencies and
non-profit groups that offer weight management services; and fitness centers. Additional competitors may
emerge as new or different products or methods of weight management are developed and marketed. More
effective or more favorably perceived diet and weight management methods, including pharmaceutical
treatments, fat and sugar substitutes or other technological and scientific advances in weight management, also
may be developed. This competition may reduce demand for our services and products.
The purchasing decisions of weight management customers are highly subjective and can be influenced by
many factors, such as brand image, marketing programs, cost and perception of the efficacy of the service and
product offerings. Moreover, customers can, and frequently do, change weight management approaches easily
and at little cost. For example, in fiscal 2003 and fiscal 2004, our revenue growth was adversely affected by
increased popularity and media exposure of low-carbohydrate diets. Any decrease in demand for our services and
products may adversely affect our business, financial condition or results of operations.
If we do not continue to develop innovative new services and products or if our services and products do
not continue to appeal to the market, our business may suffer.
The weight management industry is subject to changing customer demands based, in large part, on the
efficacy and popular appeal of weight management programs. Our future success depends on our ability to
continue to develop and market new services and products and to enhance our existing services and products,
each on a timely basis to respond to new and evolving customer demands, achieve market acceptance and keep
pace with new nutritional, weight management, technological and other developments. We may not be successful
in developing, introducing on a timely basis or marketing any new or enhanced services and products, and we
cannot assure you that any new or enhanced services or products will appeal to the market. Our failure to develop
new services and products and to enhance our existing services and products or the failure of our services and
products to continue to appeal to the market could have an adverse impact on our ability to attract and retain
members and subscribers and thus adversely affect our business, financial condition or results of operations.
Our business depends on the effectiveness of our marketing and advertising programs to attract and retain
members and subscribers.
Our business success depends on our ability to attract and retain members to our meetings and subscribers to
WeightWatchers.com. Our ability to attract and retain members and subscribers depends significantly on the
effectiveness of our marketing practices. From time to time, we use the success stories of our members and
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