Company: WW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029511
Chunk: 155

Company: WW INTERNATIONAL, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 155
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 fiscal 2024 and the net impact of restructuring charges in fiscal 2023, gross margin for fiscal 2024 would have increased 6.6% to 68.5%, both as adjusted and as adjusted on a constant currency basis, versus the prior year. This gross margin increase was driven primarily by actions to reduce the fixed cost base within our business and the closure of our lower margin consumer products business at the end of fiscal 2023.

Marketing

Marketing expenses for fiscal 2024 decreased $1.9 million, or 0.8%, versus fiscal 2023. Foreign currency had a de minimis impact on marketing expenses for fiscal 2024. This decrease in marketing expenses was primarily due to lower spend on agency fees and TV advertising and production fees, partially offset by higher spend on online advertising. Marketing expenses as a percentage of revenue for fiscal 2024 increased to 30.1% from 26.8% for fiscal 2023 as a result of a decrease in Subscription Revenues due to Behavioral recruitment declines.

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Selling, General and Administrative

Selling, general and administrative expenses for fiscal 2024 decreased $47.1 million, or 17.8%, versus fiscal 2023. Excluding the impact of foreign currency, which increased selling, general and administrative expenses in fiscal 2024 by $0.1 million, selling, general and administrative expenses for fiscal 2024 would have decreased 17.8% versus the prior year. Excluding the net impact of the $17.1 million of restructuring charges in fiscal 2024, the $3.9 million of former CEO separation expenses in fiscal 2024, the net impact of the $33.7 million of restructuring charges in fiscal 2023 and the impact of the $8.6 million of acquisition transaction costs in fiscal 2023, selling, general and administrative expenses for fiscal 2024 would have decreased by 11.6%, both as adjusted and as adjusted on a constant currency basis, versus the prior year. This decrease in selling, general and administrative expenses was primarily due to a decline in employee compensation and related costs from continued cost discipline and execution towards our cost savings initiative plan announced in 2024, partially offset by an increase in bad debt expense. Selling, general and administrative expenses as a percentage of revenue for fiscal 2024 decreased to 27.7% from 29.8% for fiscal 2023. Excluding the net impact of restructuring charges in fiscal