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Article: Jenny Craig expected to fatten in near future; revenue decrease tied to industry malaise. (Jenny Craig Inc.)
- Article from:
- San Diego Business Journal
- Article date:
- August 22, 1994
CopyrightCOPYRIGHT 1994 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Profits at Jenny Craig Inc. are thin, but some analysts say its bottom line is likely to fatten up in the future.
Earlier this month, the Del Mar-based weight loss management company reported that revenues fell 22 percent from $490.6 million to 403.3 million for the fiscal year ending June 30.
Net earnings plunged from $36.8 million, or $1.35 a share, to $534,000, or 2 cents a share, as the company wrote off legal expenses and the costs from closing 30 company owned stores.
In June, the company also suspended its quarterly dividend.
"The (weight loss) industry has just been in a real state of malaise," said Ron Rotter, a retail analyst with the ...