Weight Watchers CEO James Chambers steps down after 3 years

The company said Monday that it’s hunting for a new chief because James Chambers has made a decision to step down. He and the board of directors, which includes Winfrey, made a “joint decision” that he should leave, according to the company.

Oprah Winfrey’s portfolio took a bit of a ding late Monday after Weight Watchers International Inc. shares fell with the resignation of the company’s chief executive, but the stock is also looking at its lowest levels since the media mogul announced her stake in the company. Weight Watchers, whose diet program has a questionable long-term track record, faces competition from free apps and changing attitudes toward wellness that will have more people turning to alternatives.

The company has struggled to compete with other weight-loss programs in recent years, and revenues in the quarter ended July 2 were little changed from a year earlier.

While Weight Watchers is searching for a new CEO, Chief Financial Officer Nicholas Hotchkin and board members Thilo Semmelbauer and Christopher Sobecki will head an interim office of the CEO to run the company.

Hotchkin noted that Weight Watchers expects to post earnings and revenue growth this year, with the current period forecast to show the fourth straight quarter of member-recruitment growth.

In a statement, Chambers said he was proud of “the team’s accomplishments in returning the company to growth” and of striking a partnership with Winfrey.

The company’s weaknesses can be seen in multiple areas, such as its weak operating cash flow and feeble growth in its earnings per share. The news sent shares of Weight Watchers soaring more than 100 percent, though some of the company’s results this year have missed Wall Street expectations.

Weight Watchers’ shares fell 3.4 percent in after-hours trading.