New year, new you. And for plenty of companies, a new chance to cash in on your New Year's resolutions.
From weight-loss clinics to fitness clubs, the first quarter of the year is the biggest opportunity of the year to sign up new members, sell gadgets, offer coaching services and watch the money roll in.
More than one-third of U.S. adults are considered obese. Meanwhile, losing weight and staying fit are at the top of the list of resolutions every year.
There are big bucks at stake. Gym, health and fitness clubs ring up about $30 billion a year, according to IBISWorld, a business research firm. Sporting goods stores, wholesalers and manufacturers count nearly $100 billion in sales. Weight-loss services, along with nutrition and dietitian services, pull in another $12 billion. Pilates and yoga studios count for $9 billion.
But it's a tough, competitive world, and consumers can be choosy. Last year's business big sellers and hot companies can be next year's dead dogs. (Just think of Blockbuster, Kodak, Atari, Borders and Circuit City.) So the companies with the latest, greatest pitch have the best chance to have a happy New Year.
So let's take a look at how some companies are positioning themselves.
WEIGHT WATCHERS INTERNATIONAL
For decades this was the gold standard for losing weight. Weight Watchers, founded in 1961, steadily rang up sales and profits by offering dieting programs, food and support centers for people trying to shed a few pounds.
But that was then.
In recent years, people have been migrating to digital gadgets that measure how many steps they walk, miles they pedal or steps they climb, like Fitbit activity trackers, Apple watches and free apps like MapMyRun.
That has taken a big bite out of Weight Watchers. Membership fell last year to 800,000 from 1.4 million in 2008. Company revenues have slipped 11 straight quarters. The stock has fallen 71 percent from its peak in 2011.
But can Oprah Winfrey rescue the diet company? In October, she bought a 10 percent stake in Weight Watchers and stars in two promotional TV spots. "Are you ready? Let's do this together," she said.
The company's stock has tripled since Oprah got involved, although it is still down about 7 percent from a year ago.
NUTRISYSTEM
If you're too confused by all the choices in a supermarket, Nutrisystem wants to take this job off your hands -- for a price.
The company specializes in delivering portion-controlled, packaged entrees and snacks to your house, which you can add to with fresh produce and dairy. The company provides more than 150 menu choices. A basic plan of six small meals a day costs about $280 a month.
The company also sells its products at Wal-Mart, Costco, Kroger and other retailers.
Nutrisystem seems to have found a willing audience. Revenue last year increased 13 percent, to $403 million. Profits nearly tripled, to $19 million. And it keeps expanding its offerings. Recently it bought the hugely popular South Beach Diet brand, which focuses on lean protein and vegetables, and will roll it into its meal-delivery program. The South Beach diet has more than 23 million books in print, signaling a huge opportunity.
Still, the company can't tarry. Its stock has been essentially flat for the past two years and is down 30 percent from its peak in July.
NIKE
The mighty Nike doesn't really need your cash. The giant of athletic footwear, whose products are worn and endorsed by super-athletes from LeBron James to Tiger Woods, is raking in money by the boatload.
Nike posted sales of $30.6 billion last year, up 21 percent from just two years earlier. In October, it said it expected annual revenue to grow by 63 percent, to $50 billion, by 2020. Its stock is one of the best performers on Wall Street.
Retired New York Yankee Derek Jeter is being paid $10 million to push the message that "hustle has no age limit."
Nike might call it a hustle. For you, it's just a New Year's resolution.
Style on 01/05/2016