Sales Up Amid Changes
In February 2019, Herbalife Nutrition announced that their sales numbers are up significantly, almost 10 percent, in the most recent quarter. Sales numbers in North America have also increased by more than 10%. Their strongest sales are in the Asian Pacific area where sales were up about 22%. Industry analysts believe that the Asian market growth is due to the company’s direct marketing plan that works within family, friends, and business associates.
They note that the Chinese market is very family orientated and they enjoy the direct sales framework.
In other breaking news, their Chief Executive Officer, Rich Goudis unexpectedly resigned from his top position in January 2019. The company and the United States government discovered recorded comments Mr. Goudis had made years ago that were inconsistent with the company’s ethical business practices. And compounding the problem, the comments about bypassing rules on entertainment expenditures in Hong Kong, play directly into the current and lengthy investigation into expense account limit violations and bribery allegations. The United States Justice Department and the Securities and Exchange Commission (SEC) have been investigating the company’s practices for about two years. So although the comments are dated, they were potentially harmful and violated the company’s standards, and necessitated Mr. Goudis’ resignation. They were especially troubling as they seem to directly impact the Justice Department’s inquiry.
The company is fully cooperating with the Justice Department’s investigation and is also conducting its inquiry into the allegations. In a recent Securities and Exchange Commission filing, the company noted that the investigation is focused on spending for entertainment and gifts by a local department based in China. In that filing, they also reported that as a result of the inquiry, they have removed a number of employees in China and reviewed and implemented new procedures and best practices.
Now May Be the Time to Invest in Health
If you are a big fan of Herbalife products or simply just a savvy investor looking for an investment option, here’s opportunity knocking at your door. This premium company devoted to healthy living is a prime candidate for long term investing. Now is your perfect chance to get both yourself and bank account in the pink of health by investing in the stock (HLF). It appears the company has turned the corner after posting a gain of nearly $50 million or 34 cents a share in the last quarter. This is a marked improvement from the loss of $63 million or 43 cents a share that the company posted a year before. It looks like now is the right time to get healthy.
This company, with headquarters in Los Angeles, is devoted to health and sells such products as weight management and weight loss shakes and snacks. They also make and sell fitness and energy products such as protein shakes to help build one’s body and drinks to stay hydrated. Another core product is specialized nutrition composed of vitamins and supplements for all ages and health issues. These include nutritional supplements for new moms, women’s health, men’s health, healthy aging, digestive health, heart health, immune health, and stress management. The company also produces a line of healthy products for skin and hair care.
They sell their products through individual distributors, in a multi-level marketing plan. It is a direct sales plan company. People sign up to sell to and work with friends who also sell the products. When a person’s friends or colleagues make sales, the initial person gets a commission or a percentage of the sales.