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New Avon Partners with Gyrl Wonder

July 23, 2020 by DSN Staff Leave a Comment

New Avon has partnered with Gyrl Wonder, a professional pipeline initiative giving rise to ambitious young women of color between the ages of 17–22.

Similar to Avon promoting female entrepreneurship and inspiring businesses for thousands of Representatives, Gyrl Wonder equips the young woman who has found her passion with the toolkit necessary to turn her interests into a career.

Gyrl Wonder’s mission is to empower young women of color through social impact, career exploration and objective alignment. They provide access and resources necessary for them to successfully enter a competitive workforce while teaching them how to leverage these tools to reach their personal and professional goals.

New Avon has donated over $100,000 worth of cosmetics, skincare, haircare, personal care and other essential products to the “gyrls” of Gyrl Wonder to support its mission pillars of self-care, self-image, empowerment, development and service. Avon also plans to work with Gyrl Wonder for future workshops and internship opportunities.

“Avon has championed amazing women for over a century, and we are proud to support Gyrl Wonder and the young women of color they champion,” said Avon CEO Paul Yi. “The synergy between Avon and Gyrl Wonder makes our partnership an excellent collaboration. At Avon, our goal is to celebrate women’s power to make a beautiful and positive impact in the world. We love celebrating the talented and passionate ‘gyrls’ of Gyrl Wonder.”

 

Filed Under: Daily News Tagged With: Gyrl Wonder, New Avon, Paul Yi

USANA Net Sales Up Slightly in Q2 2020

July 22, 2020 by DSN Staff Leave a Comment

USANA Health Sciences, Inc. (NYSE: USNA) yesterday announced financial results for its fiscal second quarter ended June 27, 2020.

According to the company, continued strong demand and successful promotions combined to generate $259.0 million in net sales, up 1.2 percent versus prior-year quarter. Active customers totaled 599,000, an increase of 7.9 percent versus the prior-year quarter.

“During the quarter, we generated nearly 8 percent growth in active customers, due to double-digit customer growth in three-of-our-four regions, including the Americas and Europe region,” said Kevin Guest, chief executive officer and chairman of the Board. “We also continued to successfully execute a virtual sales and operating strategy to deliver our results. This strategy included USANA hosting its first all-virtual Asia Pacific Convention, as well as the facilitation of other technology-based tools that assisted our Associates in their sales efforts. Finally, we offered several promotions and incentives during the quarter that benefitted net sales and our overall results.”

Q2 2020 Regional Results:

  • Asia Pacific: $209.3 million, up 1.9% from prior-year quarter
  • Greater China: $124.0 million, down 3.8% from prior-year quarter
  • North Asia: $25.9 million, up 19.1% from prior-year quarter
  • Southeast Asia Pacific: $59.5 million, up 10.2% from prior-year quarter
  • America & Europe: $49.7 million, down 1.7% from prior-year quarter

The company is updating its consolidated net sales—from $1.00–$1.08 billion to $1.05–$1.10 billion—and earnings per share outlook—from $4.00–$4.90 to $4.70–$5.25—for fiscal year 2020.

“We are raising our full-year guidance to reflect a solid second quarter as well as our expectations for the back-half of the year,” said Guest. “We recognize that we cannot anticipate all of the challenges that might arise as a result of the ongoing COVID-19 pandemic, but we believe that we are positioned to continue adapting to an evolving operating environment.”

To read the complete USANA Q2 2020 report, click here.

Filed Under: Daily News Tagged With: Kevin Guest, USANA Health Sciences Inc.

The Millennial Takeover: How the Generation Is Shaking up the Workplace

July 22, 2020 by DSN Staff Leave a Comment

This article was written by Danny Beckett Jr. and appeared on entrepreneur.com.)

In the next five years, the U.S. workplace is poised to experience a changing of the guard.

The majority of Baby Boomers, now in their upper 50s, 60s, and lower 70s, will be well into retirement age. Their vacated executive positions and managerial roles will most likely be filled by up-and-coming Gen Xers and Millennials, if they haven’t already.

Currently the largest living generation in the U.S., by 2025 Millennials will account for 75 percent of the American workforce. While their habits as consumers often get maligned in the media for bringing about decline in industries and products as wide-ranging as napkins, cable TV, soda, razors, golf, mayonnaise, traditional weddings, department stores, starter homes, and “breastaurants,” what they bring to the table—rather than take off it—deserves more of the limelight.

Love them or hate them, here are major cultural shifts you can expect to see in the workplace as more Millennials take charge.

Mission-driven brands

While the jury is still out on whether Millennials are more or less brand loyal than preceding generations (some studies say they are, some say they aren’t, and some say it depends on the product category), one thing is for certain: Millennials value brands that demonstrate authenticity, and that authenticity is shown by remaining true to a cause.

This is the case for both patronage and workplace preference. Millennials want to buy from and work for businesses that have a purpose at their core. A job is no longer just about a paycheck and putting food on the family table; for Millennials, it’s very much about purpose, with 75 percent saying they want their personal values to align with their company’s values and are even willing to take a pay cut to work for a value-aligned company.

Co-authors John Izzo and Jeff Vanderweilen call it the forthcoming “Purpose Revolution.” Employees, customers and investors are increasingly looking beyond a company’s bottom line to ask how it’s making the world a better place. In the age of social good, the line between for-profit and not-for-profit becomes less rigid, and brands like TOMS, Ben & Jerry’s, Patagonia and Warby Parker are all lead actors, as they put their social corporate responsibility front and center, a scorecard against which the world can judge their success. Expect Millennials to continue wearing their social causes on their sleeves as they move up the ranks and have a greater say in shaping their own company’s mission.

Empathetic leadership

Another area in which you can expect to see Millennials making change is in leadership style. Fading are the days of the corporate strongman, whose word becomes instant workplace policy, and whose authority is derived solely by title or position.

It could be the result of growing up in a postmodern era, but many Millennials are very aware, and skeptical, of power dynamics, and tend to see legitimate authority as earned rather than assumed. Consequently, Millennials respond better to leaders who inspire by example and embody the mission of the company. A big part of authentic leadership is the willingness to solicit feedback and hear out ideas, not just from one’s own C-suite peers, but from all levels of an organization.

That ability to understand and share the feelings of others is what we call empathy, and it’s a huge component of emotional intelligence. Empathy is especially important for leaders, as they need to understand what truly motivates their team in order to build a successful, thriving culture on that foundation. Moreover, empathy is especially important today, as Daniel Goleman writes in Harvard Business Review, for three main reasons:

Work is increasingly team-based

  • The world is increasingly globalized, requiring coordination among diverse persons
  • Success is often dependent on retaining the best talent

As they step into leadership roles, expect Millennials to perform like the kind of leaders they most respect—the charismatic, caring, and listening kind.

Flattened hierarchy

Ever noticed how suits, once a staple of corporate America (Mad Men, anyone?), are slowly losing their prominence among the office dress code?

You could blame it on Silicon Valley. Tech execs like Steve Jobs, Jack Dorsey, and Mark Zuckerberg have for years evinced a dressed-down style that’s more Tony Hawk than Tom Ford. The trend is so prevalent that Vox declared suits are now mostly reserved for “powerful men when they’re in trouble” (aka Zuckerberg at a Congressional hearing).

But the waning popularity of suits is symptomatic of something bigger than just workplace fashion trends. It’s about corporate structure. Along with open offices, corporate town halls, employee stock ownership, and rotating team leaders, casual attire is part of a larger Millennial-driven trend toward a flattened hierarchy in the workplace.

Sometimes described as a “flat organization” or a “holacracy,” a flattened hierarchy reduces bureaucracy overall and aims to eliminate the mid-management levels between executives and entry-level employees. Shrinking that gap has a number of advantages. Besides reducing unnecessary labor costs, it stresses individual responsibility and encourages each team member’s personal investment in the company; facilitates a freer flow of communication; allows for quicker, more nimble decision-making; and empowers team members to be proactive in leading and offering solutions rather than placing that burden entirely on the shoulders of the CEO.

And a flattened hierarchy is more in line with the type of leadership Millennials most resonate with—the kind that’s on their level rather than in some aloof, top-floor corner office.

At home with disruption

Born between 1981 and 1996, Millennials have grown up witnessing tremendous technological change, from the introduction of computers in the home, to dial-up internet, the dot-com boom, broadband, nearly ubiquitous Wi-Fi, the Internet of Things, cloud computing, self-driving vehicles, smartphones, smart houses, smart everything.

Nobody knows more experientially than Millennials the evidence for Moore’s Law—that computer chip-based technology seems to double every one-and-a-half to two years. Needless to say, for them, disruption has become cliché, a buzzword that’s lost its buzz.

While “digital natives” may gloss over the fact that Millennials come from diverse upbringings with unequal access to technology, the gist remains: as a generation accustomed to constant software updates and the breakneck pace of change, Millennials understand that successful businesses need to be ready to adapt or die.

Consider Apple’s goal to roll out a new iPhone every year and Facebook’s frequent overhauls. The generation that’s brought us Airbnb, Lyft, Groupon, Spotify, Tinder, Oculus RV, Stripe and nearly every social media platform imaginable will make it a key operational philosophy for the companies under their watch to remain relevant or risk fading into obscurity.

Flexible work/life

That same saturation with communication technologies that earns Millennials the label of digital natives has also taught them how hard it can be to “turn off.” When your mobile phone is your work phone and an office email can appear on your smartwatch at any time, the traditional nine-to-five schedule can take on the dreamlike aura of a bygone time in which it was once possible to keep work life enjoyably distinct from personal life.

In reaction, many Millennials have pushed back against the “always-on” expectations at their jobs and advocated for better work/life balance in their careers, which makes sense. Burnout is real, and it’s no secret that happier people are more productive employees, and more likely to stick around.

The irony is that the very technologies that make us accessible around the clock and thus the potential victim of 24/7 work demands are the same technologies that can deliver better work/life balance. For many skill-based creative professions, digital technologies allow for flexible work hours, telecommuting, location independence and a number of other benefits that boost individual control over one’s own work life.

As we reach a generational tipping point that sees more Millennials in leadership positions, expect them to introduce more workplace policies that contribute to employee happiness, particularly ones that increase self-autonomy and protect work/life balance.

Filed Under: Insights

Southwestern Appoints Patty Hoppenstedt Vice President of Human Resources

July 22, 2020 by DSN Staff Leave a Comment

Patty Hoppenstedt has joined Southwestern Family of Companies as vice president of Human Resources.

In her new role, Hoppenstedt will be responsible for providing consultation on strategic staffing plans, including compensation, benefits, training and development, budget and labor relations.

“Patty has spent more than 20 years in HR within a variety of industries,” said Dustin Hillis, CEO of Southwestern Family of Companies. “That will be a huge advantage as she assists our diverse family of companies with their HR needs.”

Prior to joining Southwestern, Hoppenstedt held HR leadership roles at a variety of companies and city governments including DentaQuest, Amedisys, Village of Schaumburg, and Levy Security Corporation. She attended the University of Illinois at Chicago and holds an MBA specializing in Human Resources Management from the Keller Graduate School of Management of DeVry University.

Filed Under: Daily News Tagged With: Dustin Hillis, Patty Hoppenstedt, Southwestern Family of Companies

NewAge Enters into Agreement to Acquire ARIIX

July 21, 2020 by DSN Staff Leave a Comment

NewAge Beverages Corporation announced it has entered into a definitive agreement to acquire ARIIX, together with four additional companies in the e-commerce and direct selling channels.

The combination will create a global firm with estimated pro forma revenues in excess of $500 million across more than 75 countries worldwide.

NewAge and ARIIX have agreed to create a leading health and wellness firm, with an omni-channel route to market, depth in the e-commerce and direct selling channels, a team of more than 400,000 independent representatives and a portfolio of healthy products. Merging into the combined company are:

  • NewAge: One of the fastest-growing beverage companies worldwide with penetration in over 60 countries and a unique omni-channel route to market
  • ARIIX: One of the fastest-growing direct selling companies with over 17% CAGR 2015-2019, penetration in over 35 countries and a leading nutritional performance portfolio
  • Zennoa: Established in 2016 with its largest presence in Japan and a portfolio of superfood-based dietary supplements, beverages and fermented foods
  • LIMU: Global leader in fucoidan-rich, seaweed-based nutritional products and beverages with over 2,000 independent research studies on its proprietary supernutrient
  • MaVie: DNA mapping and wellness company with predictive genomic sequencing and a range of nutritional products customized to individuals’ DNA makeup
  • Shannen: Award-winning Indonesian skincare and beauty company founded in 2018 with sales of over $25 million in its first two years of operations

NewAge CEO Brent Willis, who will be the CEO of the newly combined company, said, “We are very excited that these companies are coming together to create a powerful global enterprise with tremendous growth potential. We will have the team, the scale, the profitability, the brands and the reach to drive superior growth and return for shareholders and all of our valued independent representatives and consultants worldwide.”

Key Highlights

  • Increases scale with expected pro forma revenue in excess of $500 million, with increased free cash flow and positive net income
  • Enhances the combined company’s global footprint, adds to the core markets of China, Japan and Europe, and expands market access to over 75 markets worldwide
  • Furthers the omni-channel route-to-market strategy with over 80% of products ordered and fulfilled online and over 80% delivered direct to consumers’ homes
  • Strengthens portfolio of healthy brands with major new additions to category platforms of Health and Wellness, Healthy Appearance and Nutritional Performance

ARIIX was founded nine years ago by former direct selling senior executives, led by Dr. Fred Cooper and Mark Wilson. The company has garnered over 200 awards in business, leadership, branding and has grown to more than $200 million in revenue and $15 million in EBITDA in 2019.  Cooper, who is chief executive officer of ARIIX, will be joining the Board of NewAge as part of the merger.

“We are in an excellent position to accelerate organic growth with our direct business model, our expanding market access, and our healthy product portfolio, and are confident as a result of this merger,” said Cooper.

NewAge has grown from $2 million to over $250 million in less than four years. The company has developed a platform of healthy functional brands sold through its omni-channel route to market across more than 60 countries around the world. The combined entity expects to reach pro forma revenues of over $500 million, with a blended gross margin of approximately 70 percent, and adjusted EBITDA of more than $30 million for 2020.

As part of the combination, NewAge expects to capture approximately $20 million in EBITDA in the first 18 months following closing in cost and revenue synergies in the areas of cost of goods sold, manufacturing efficiencies and scale, operational redundancy, cross-pollination of brands, as well as market and channel expansion.

Consideration for the acquisition will consist of a combination of cash, common stock and convertible notes. At closing, NewAge will pay $25 million in cash and will issue 18 million shares of the Company’s common stock. NewAge will also issue a convertible note for $10 million that matures six months from closing and a convertible note for $141.25 million that matures 24 months from closing. Details of the transaction are included in the Company’s Current Report on Form 8-K dated July 20, 2020. Closing of the transaction is expected to occur in the third quarter of 2020.

Filed Under: Daily News Tagged With: ARIIX, Brent Willis, Dr. Fred Cooper, LIMU, Mark Wilson, MaVie, New Age Beverages Corporation, Shannen, Zennoa

5 Steps to Building Successful Mentoring Relationships in the Digital Era

July 21, 2020 by DSN Staff Leave a Comment

(This article was written by Bianca Miller Cole and appeared on forbes.com.)

During the lock down, demand for online knowledge has surged from professionals and business owners alike, as they pursue guidance to support their business model and career pivots.

Whilst the plethora of live streams, panel discussions and webinars are valuable, it’s essential not to overlook the ‘real-life’ support of a mentor.

As the saying goes: “There is no lack of knowledge, just a shortage of asking for help.” (unknown)

There is an age old argument about which is more important “coaching” or “mentoring”, I think both are important, but I am a huge fan of mentoring in particular. Mentorship is, by definition, “a relationship in which a more experienced or more knowledgeable person helps to guide a less experienced or less knowledgeable person. The mentor may be older or younger than the person being mentored, but they must have a certain area of expertise.” And it is that expertise that helps the individual to have a better sense of clarity and purpose, with actionable steps. More importantly, it should help you to get where you are going faster and with less expensive mistakes (with reference to time and money).

With an inability to meet in person during lockdown, remote mentoring offers the flexibility of having a trusted advisor to help with tough decisions and encouragement wherever you are but forming a relationship virtually over video conferencing can be tricky.

As a mentor to over 100 mentees located across the world, I have relied on technology more than ever in recent months to stay connected. With that said, I am keen to strengthen my mentoring relationships remotely, so I turned to Selina Thompson, Digital Adoption Consultant and Founder of Forward Transformation for her insights. Selina has forged successful relationships with her international network while consulting clients on change and adoption during digital implementations. Throughout our conversation, I found Selina’s insights valuable and I believe they can also help you at any stage of your mentoring journey.

Drawing on Selina’s experience, here are her five tips to achieve successful mentoring relationships in the digital era:

Tip 1: Showcase who you are and what you do

Remember all eyes are on the internet at this time so your mentor–mentee pairings can happen anywhere online.

Create an engaging online profile to showcase what you offer and be consistent across all digital marketing channels, including social media and the ‘About Me’ page on your website. You can build an online portfolio using Flipsnack and Carbonmade they are excellent to promote your work.

Tip 2: Find your mentor online

Social media platforms open the door to thousands of mentors that would otherwise take a lifetime to find.

Professional networking platform LinkedIn has over 500 million professional members making it the most popular tool to connect with experts that match your aspirations.

Tip 3: Initiate your relationship on social media

Engage with your chosen leader online before asking them to be your mentor.

Follow social media handles to learn what matters to them and interact on public posts or direct messaging. It is important to not only engage the mentor but to have a conversation to ascertain that there is synergy and an understanding. This shows interest and lets them get to know you too. Once your mentor–mentee relationship begins, discuss your goals and align your intentions, including formal or informal arrangement, and how much time you will spend together.

Where possible get feedback from others, if they are a great mentor there is likely to be someone who will vouch for them and explain how their mentorship has helped.

Tip 4: Join a Peer-to-Peer mentoring network

Online communities hosted by industry associations and experts offer you opportunities to receive mentoring in a private forum.

Community forums are a safe space for leaders and peers to share experiences, brainstorm ideas and provide feedback. Look for areas of commonality amongst community peers on members boards to help identify mutual collaborations or where you can trade skills.

Tip 5: Optimize your mentor time using digital tools

Switching to digital practices will allow more time for valuable discussions and key takeaways.

  • Allocate time to your goals in Google calendar
  • Zoom, Google Meet or Teams offer the best user experiences for video conferencing on your mobile device or desktop
  • Use task management apps Asana, Monday.com or Trello to organise and track actions monthly
  • Don’t wait for email replies! Communicate with your mentor and peers using instant messaging apps such as WhatsApp, GoogleHangouts or WeChat
  • Share and purchase book recommendations using audiobook apps. See Audible and other alternatives.
  • Teams and Slack are the leaders in cloud collaboration. Instant chat, video meetings, collaborating, storing files and integration with over 200 external applications are just several highlights of streamlining your remote working experience.

In short, if you feel you need a mentor, get one. This is not only about entrepreneurs, those in a professional career can also benefit from mentoring.

In fact, mentoring has proved so beneficial that 71% of Fortune 500 companies offer mentoring programs to their employees. According to a report from Wharton individuals with a mentor “were promoted five times more often than those not in the program; and retention rates were much higher for mentees (72%) …than for employees who did not participate in the mentoring program (49%).”

Many of the great business leaders that we admire have a mentor or coach, according to the Kabbage report “92% of small business owners agree that mentors have a direct impact on the growth and survival of their business and 89% of small business owners who didn’t have a mentor wish that they did.” These statistics illustrate the need for experienced mentors in the entrepreneurial community who can deliver good advice to help a business over those shaky first years.

The stats are clear, if you want to succeed in business or your career, get the mentorship you need to thrive.

Filed Under: Insights

Jim Maloney Named Medifast Chief Financial Officer

July 20, 2020 by DSN Staff Leave a Comment

Medifast, Inc. announced that it has appointed James (Jim) Maloney as chief financial officer, effective today.

In his role, Maloney will be responsible for leading the finance function, including all aspects of financial planning and analysis, setting Medifast’s financial and capital allocation strategies and managing investor relations. He will serve as a member of the company’s leadership team and report directly to Chief Executive Officer Dan Chard.

“We are pleased to welcome Jim to the Medifast team as we continue on our mission to offer the world lifelong transformation, one healthy habit at a time,” said Chard. “Jim brings deep public company experience, a strong focus on capital allocation and an ability to manage the finance function of a fast-growing, dynamic and complex business. He also has a history of building value, which will be important as we aim to deliver long-term sustainable growth through our differentiated approach to health and wellness.”

Maloney most recently served as senior vice president and chief financial officer for L.B. Foster Company, a publicly held global manufacturer and distributor of products and services for transportation and energy infrastructure. Prior to that he served as chief financial officer of First Insight, Inc., and had roles at the H.J. Heinz Company, including vice president of Global Financial Planning and Supply Chain Finance, director of Finance for Supply Chain for Heinz North America, and controller of Heinz North America.

“I am thrilled to join the team at Medifast, said Maloney. “The company’s unique business model, collaborative culture and OPTAVIA’s robust and inspiring community provides the opportunity to drive significant value for stockholders.”

Filed Under: Daily News Tagged With: Dan Chard, James Maloney, Jim Maloney, Medifast, Medifast/OPTAVIA

6 Ways You Aren’t Putting Your Customer First—And How to Fix Them

July 17, 2020 by DSN Staff Leave a Comment

(This article was written by Serenity Gibbons and appeared on forbes.com.)

Every dollar your business spends on promoting the well-being of your customers is a dollar that will come right back to you. Eighty-six percent of buyers are willing to pay more for a better customer experience, so failing to put your customers first is equivalent to leaving money on the table.

In times like these, it can be easy to lose sight of everything but the bottom line. But ignoring the needs of your customers will do you more harm than good in the long run. Businesses hoping to ensure their success well into the future need to treat their customers right today.

Here’s how you can do so:

1. Unresearched Marketing

Your customers may know your brand, but does your brand know its customers? People want to see advertising that directly appeals to their concerns as customers, and your business needs to be able to provide that.

Knowing your customers is the first step to providing them with what they want. There are several different ways you can develop an understanding of your consumer base, but HubSpot’s guide to market research is a good place to start for the uninitiated. Learn about their demographics, interests, and desires as consumers—all of this information can help you know how best to put them first.

2. Inaccessibility

If your customers have something they need to say to you, they shouldn’t have a difficult time doing so. Many businesses, however, simply have a “contact us” form, with little more than an email that rarely gets answered. Your clientele deserves better, and new tools are being developed all the time to help you do that.

Simply put, you need to get your customers in touch with a human being as frequently as possible. Unfortunately, most businesses don’t have the digital infrastructure in place to make that feasible—enter applications like PingPilot. PingPilot can integrate SMS, live chat, and email directly onto your business’s website, landing page, or e-book, giving your customers a click-to-human experience. With storefronts closed and call centers shuttered, you need a digital bridge between you and your patrons.

3. Not Listening 

Once you’ve established a channel for your customers to reach out, you need to be sure to listen to what they have to say. For plenty of companies, customer feedback goes in one ear and out the other—an attitude almost guaranteed to lose business.

While the obvious solution is to always listen to your customers, you should also be asking the right questions. If you’re only inquiring about the information you need to know, you’re far less likely to lose track of the answer. This customer survey guide from Hotjar is a helpful template for learning how you can communicate with your clients in a way that produces valuable information.

4. Losing Sight of Your Mission

In 2020, people are drawn to companies that stand for something. The organizations that have goals and values are the ones geared for success in today’s market, so developing and maintaining a companywide mission is more important than ever before.

As economic certainty decreases, it’s tempting to ignore goals that aren’t directly related to filling your company’s coffers. But losing sight of your mission may cost you more than you know. An unguided company can hemorrhage customers like no other, so getting everyone on board with your mission now promotes your business’s well-being later on.

5. Siloing Teams

If your entire company isn’t working together, people can’t possibly be focused on the same goal of promoting the customer. You need to start integrating your business’s various work teams to ensure that all of your employees are on the same page in that respect.

One of the best ways to do so is by adopting the right collaboration software. Work management solution WorkFront reports that 94 percent of companies find that collaboration is critical to their overall success and using project management software is a good way to kick that off. Especially as levels of remote work hit new highs, businesses need to find ways to let technology help them cultivate teamwork.

6. Lacking Transparency

The 2019 Edelman Trust Survey uncovered a number of interesting facts, perhaps the most consequential of which is that more than 80 percent must trust a brand before purchasing its products. You need your customers to trust you, and transparency is the only way to guarantee that.

Regularly release statements regarding the current state of your business and what’s coming next. Respond to every moment of crisis or uncertainty with candor and openness—being honest with your customer base is the only way to develop a lasting sense of trust.

It’s simple: Value your customer, and she’ll value you in return. Business is all about relationships and developing positive ones with your clients is a crucial component of success that’s far too often ignored.

 

Filed Under: Insights

Direct Selling Channel: Growth Trend Continued in June

July 16, 2020 by DSN Staff Leave a Comment

Transformation Capital reported June 2020 revenue results showed a continued growth trend in the direct selling channel.

According to the Dallas-based investment banking and business development firm, a survey set of its 50 leading direct selling companies continued to indicate strong sequential sales growth across most of the channel.

“This is the fourth month in a row with similar growth results, which we believe is past the point of a pleasant anomaly and now indicative of a trend and potential inflection point within our industry,” said Stuart Johnson, CEO of Transformation Capital.

June is historically a slow month for the direct selling industry—a fact traditionally attributed to kids being out of school and summer vacations. This year, however, 12 respondent companies reported record monthly revenue during the period and 70 percent of respondents reported a sequential increase in revenue when comparing June 2020 to May 2020.

June At A Glance

  • 12 companies reported record revenue for June
  • 70% of companies reported growth June over May
  • 28% remained flat or declined
  • 30% showed single-digit growth
  • 42% grew by double digits or more

 

 

The June results follow equally strong results in May (72% of respondents grew revenue over April), April (80%) and March (80%).

 

Key Takeaways

Historically speaking, June’s growth figures would be the inverse of what they are today (30% growth / 70% decline). Further, the majority of those companies that did grow in June over May would have been readily attributable to a specific catalyst, such as a product launch, event or the continuation of an explosive growth curve.

It’s important to note, says Johnson, that while the number of companies reporting high percentages of growth (10% or more) month-over-month declined, the same number grew during the same time period. This growth was achieved on a higher prior month revenue base and during the historically slow month of June, leading us to find the results all the more impressive.

Additionally, most respondents report that Q2 2020 revenue exceeded that of Q1, and many have exceeded first half 2019 revenue in the first half of 2020. Anecdotally speaking, customer acquisition and recruiting statistics continue to trend higher and surpass comparable periods from one year ago.

Looking Forward

The shift of “work from home” into the social and professional mainstream as well as a likely prolonged period of relatively high unemployment, cannot be ignored as significant tailwinds for the channel.

As evidence of this, approximately 8-12 legacy companies are on track and/or projected to reach record revenue this year on a renewal basis (meaning they peaked, troughed and are now poised to once again climb to record annual revenue).

“We believe it to be a reasonable and safe prediction that the current environment is not changing anytime soon,” said Johnson. “We have no reason to expect anything other than a continuation of the general trends we are currently experiencing in the near term and, potentially, the mid-to-longer term.

 

Filed Under: Daily News Tagged With: Stuart Johnson, Transformation Capital

Recent Public Company Data Confirms Previously Reported Trends in the Direct Selling

July 16, 2020 by DSN Staff Leave a Comment

Evidence from the public markets continues to validate the data and trends investment banking and business development firm Transformation Capital has been reporting of late.

Direct selling continues to stand out as an ideal model in the current pandemic environment. Month-to-date, the four large direct selling stocks have increased in value from 11 percent (low) to 19 percent (high), as of yesterday’s market close, as compared to a 4.1 percent increase in the Dow Jones Industrial Average. Collectively, these stocks have risen 14.5 percent month-to-date and an impressive 64 percent since the beginning of March.

Following the markets close on July 1, 2020 Nu Skin (NYSE: NUS) reported preliminary second quarter revenue results in range of $603 to $608 million, which was well ahead of its internal guidance range of between $520 and $550 million for the period. The following day the stock surged 25 percent on more than 4X average trading volume.

The remaining three large public direct selling companies traded higher on the day as well, despite a relatively flat to slightly up performance from the major indices:

  • Herbalife (NYSE: HLF) +3.9%,
  • USANA (NYSE: USNA) +11%
  • Medifast (NYSE: MED) +5.8%

Nu Skin is expected to report its full Q2 results after the market close on August 5, when the company will likely significantly increase its previously provided annual revenue guidance of a range between $2.17 to $2.26 billion. 

Before the market opened on Monday, July 13, Herbalife announced a modified Dutch auction tender offer to repurchase up to $750 million of the company’s shares at a price of not more than $50, and not less than $44.75, per share. At the same time, the company announced the largest volume points(1) quarter in the company’s history. Following these announcements, Herbalife’s stock moved aggressively higher, on more than 6X average trading volume, and closed the day 13 percent higher.

USANA is scheduled to report its second quarter financial results after the market closes on Monday, July 21.

1Volume points are a key internal metric utilized by Herbalife management, which are a weighted-average measure of product sales volume. Volume Points are unaffected by exchange rates or price changes and are used by management as a proxy for sales trends.

 

Filed Under: Daily News Tagged With: Herbalife, Medifast/OPTAVIA, Nu Skin, Transformation Capital, USANA

Buffett’s Ex-Deputy Britt Cool Takes Ownership Stake in Thirty-One Gifts

July 16, 2020 by DSN Staff Leave a Comment

Cindy Monroe to step down from chief executive officer role

Tracy Britt Cool, a former key deputy to Warren Buffett at Berkshire Hathaway Inc., is taking an ownership stake in Thirty-One Gifts.

Kanbrick, the investment firm led by Britt Cool and co-founder Brian Humphrey, will become a partner and owner with Thirty-One Gifts founder Cindy Monroe, according to a statement Wednesday.

Monroe maintains a role at the company, while yielding the chief executive officer job to Elizabeth Thibaudeau, who was CEO of Jamberry and is a former executive at Nu Skin Enterprises Inc. Terms of the deal weren’t disclosed.

Britt Cool, who worked for years under Berkshire, announced last year that she would leave to form her own business. Kanbrick, based in Chicago, aims to buy and build businesses to hold for the long term. Thirty-One Gifts, which Monroe started in 2003, sells bags, luggage, accessories and other items through a network of salespeople who host parties to pitch the products.

“We created Kanbrick to provide business owners and founders a long-term home for their businesses,” Britt Cool said in an emailed statement. “Thirty-One has a great history, a strong brand and a differentiated sales model, and we look forward to supporting the sales field to grow their businesses and to provide more opportunities to expand their selling opportunities digitally.”

Filed Under: Daily News Tagged With: Brian Humphrey, Britt Cool, Cindy Monroe, Elizabeth Thibaudeau, Kanbrick, Thirty-One, Thirty-One Gifts, Warren Buffett

Mary Kay Inc. Expands Partnership with The Nature Conservancy

July 16, 2020 by DSN Staff Leave a Comment

Last year, Mary Kay Inc. announced it had partnered with The Nature Conservancy to protect Texas fisheries and the Gulf of Mexico.

Today, Mary Kay announced it has expanded that partnership with The Nature Conservancy to impact waterways—and native species—the world over.

“All life on Earth began in and depends on our oceans,” said Deborah Gibbins, chief operating officer at Mary Kay. “Water is the most valuable resource on our planet, and it’s essential that we do our part to protect it. When we began scaling our partnership with The Nature Conservancy last year, we focused on the waterways surrounding our home state of Texas. But we’re a global company, and we knew the need for support stretched far beyond the Gulf of Mexico. We’re thrilled to advance ecosystems and biodiversity conservation globally.”

Founded in 1951, The Nature Conservancy is the leading conservation organization, working around the world to protect ecologically important lands and waters for nature and people. The Conservancy’s practices are rooted in science and are driven by pragmatic solutions to the most pressing conservation threats at the largest scale.

The conservation programs are as vast and diverse as the ocean life they’re designed to protect. Beyond the Texas fisheries program, Mary Kay will also support The Nature Conservancy through the following programs:

  • Australia: In Northern Australia, Mary Kay will partner with indigenous communities to increase women’s role in conservation, including refining community-based healthy spatial development, working with government and non-government partners to scale up the adoption of conservation tools, and establishing a women’s camp at Fish River Station, a 445,000-acre property in the Northern Territory.
  • New Zealand: In New Zealand, Mary Kay and The Nature Conservancy will engage with indigenous people in sustainable aquaculture, including supporting the implementation of restorative activities in Auckland’s Hauraki Gulf to restore wild shellfish populations and launching a challenge fund to encourage greater philanthropic support for restoration of wildlife.
  • Mexico: In Mexico, Mary Kay and The Nature Conservancy will partner on the Monterrey Water Fund, which will enhance watersheds and support women in the area. These improvements include irrigation systems, a substrate study, and the diversification of plant production.
  • China: In China, Mary Kay and The Nature Conservancy will work to protect rural headwaters to secure clean drinking water for millions of people across the country. By 2021, the team will demonstrate five headwater production projects in Zhejiang, Fujian, Guangdong, and one other province.
  • General Ocean: The partnership will also mitigate plastic pollution in Indo-Pacific tuna fisheries. Together, they will work with leading plastic researchers to identify the fisheries that are the biggest contributors to ocean pollution so high-impact pilot programs and be put in place to mitigate pollution and clean up our seas.
  • Solomon Islands: In the Solomon Islands, the partnership will protect turtles through female-led ecotourism of the South Pacific Ocean. Mary Kay’s contribution will help create a viable, locally-run ecotourism venture in the Arnavon Islands that strengthens turtle conservation and provides equitable, sustainable financial returns to communities that are best positioned to protect endangered species.
  • Colombia: Through the Bogota Water Fund, the partnership will improve water security for millions of people in Colombia.
  • Canada: In Canada, Mary Kay and The Nature Conservancy will strengthen indigenous stewards by supporting current and future community leaders in traditional territories. This is an investment in a healthy future for these communities, their lands and waters for future generations.
  • Europe: In the UK and Germany, the partnership will work to protect biodiversity and marine resources as they introduce the native European oyster. In Spain, the partnership will work to create a water fund—the country currently faces some of the worst challenges in terms of water scarcity and water quality.

“We need healthy, diverse oceans for fishing, working and playing,” said Lily Verdone, director of Freshwater and Marine at The Nature Conservancy. “But protecting oceans is about more than just protecting our planet: oceans add $1.5 trillion to the global economy each year. Mary Kay has long worked to impact change that will sustain the earth for generations to come, so they are a natural—and welcome—partner for The Nature Conservancy. We’d already seen such impactful change in Texas, and we’re thrilled to see what their contributions will help us accomplish in communities across the world.”

Mary Kay also sponsored EarthxOcean conference, a live streaming event that brought experts, researchers and conservations together in a livestream to discuss topics such as the High Seas Initiative, coral reef restoration, ocean plastic solutions and sustainable fisheries.

 

Filed Under: Daily News Tagged With: coral reef restoration, Deborah Gibbins, EarthxOcean, High Seas Initiative, Lily Verdone, Mary Kay, ocean plastic solution, sustainable fisheries, The Nature Conservancy

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