Possible Inflection Point for Direct Selling Index; Recent Top-Line Deceleration Reversing. One data point does not a trend make, but in a sharp reversal, our proprietary index of the publicly traded direct stocks has sharply outperformed the broader market as measured by the S&P 500 index through the first two months of the 2020 Q2.…

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Direct Selling Index Continues to Lag the Market; Top Line Deceleration Continues Our Direct Selling index recovered a bit in the 2019 Q4 and ended up being down (23 percent) in 2019, which sharply trailed the strong +29 percent gains in the S&P 500 for the year. We note that we have removed Avon (AVP)…

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WeWork Debacle Changes the Gig Economy Game; Public Direct Sellers Continue to Slow.   WEWORK IMPLOSION SIGNALS THE END TO BLANK CHECK FINANCING FOR GIG ECONOMY For the past several years, growth in the U.S. Direct Selling market has appeared to plateau after decades of posting mostly consistent, mid-single-digit kind of growth rates, even during…

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Public Direct Sellers: Why We Have “Regulatory” and “China” as Risk Factors; Stocks Feeling the Pain China deteriorates substantially, and it’s not geopolitics  Business in China for the publicly traded Direct Selling stocks slowed substantially in the Q2 due to the government’s crackdown on direct selling nutrition companies earlier in the year. The most exposed…

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China

Public direct sellers: China issues have direct selling stocks starting 2019 off slowly; rideshare unicorn IPOs banged up in the public markets. China Issues Plague Direct Selling Stocks Our proprietary index of Direct Selling stocks continues to lag the S&P 500 so far this year through mid-May, down 3 percent versus +13 percent for the…

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Public Direct Sellers: Business Slowed a Bit in the Fourth Quarter; Lots of Changes at Nu Skin Under CEO Ritch Wood as the Company Reinvents Itself for the Digital Age. Nu Skin Enterprises held an Investor Day at its headquarters in Provo, UT, at the end of February. Nearly two years into Ritch Wood’s tenure…

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The stocks of the six publicly traded direct selling companies we follow that are listed in the U.S., Herbalife Nutrition (HLF), Medifast (MED), Nu Skin (NUS), Tupperware (TUP), USANA (USNA) and London-based Avon Products (AVP), on balance continued their strong run in the Q2. Through the first six months of the year, our proprietary Lane…

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The six publicly traded direct selling companies we follow, whose stocks are listed in the U.S., Herbalife (HLF), Medifast (MED), Nu Skin (NUS), Tupperware (TUP), USANA (USNA) and London-based Avon Products (AVP), began 2018 in much the same fashion as how they exited 2017. On balance, trends continue favorable. In aggregate, on an equal weighted…

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Douglas M. Lane, CFA, is a securities analyst with more than 20 years of experience covering companies that employ the direct selling business model. He leads a boutique equity research firm, Lane Research, focusing on those companies. His website is www.laneres.com, and he can be reached at doug@laneres.com. The six publicly traded direct selling companies…

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