Investopedia: Nutrisystem Still Searching For Sustainability

One of the things that makes the health/lifestyle/fitness market tricky is that not only do companies have to fight to attract customers, they have to continue the fight to keep them. With customers constantly looking for weight loss options that are easy, effective and cheap, Nutrisystem (Nasdaq:NTRI) has had a difficult time finding a steady growth trajectory. (For more, see Earning Forecasts: A Primer.)


Promotions Drive a Tougher Comp 
Nutrisystem certainly closed the 2011 year on a down note. Revenue fell about 20%, due at least in part to promotional activity that wasn't as successful as hoped. Although management doesn't really provide clear retention or recruitment numbers in its conference call, it seemed pretty clear that both metrics were worse than what they had hoped.


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