brand-logo
Subscribe

Medifast’s Second Quarter Revenue Increases 55%

by Leave a Comment

Owings Mills, Maryland-based Medifast, Inc. reported financial results for the second quarter ended June 30, 2018. Revenue was $117.3 million, an increase of 54.9 percent from revenue of $75.7 million for the second quarter of 2017. Active earning Coaches were 19,700, an increase of 45.9 percent year-over-year.

“We are pleased to report a further acceleration in the business momentum we reported in the first quarter of the year, resulting in record revenues and profitability that exceeded our expectations,” said Dan Chard, Medifast’s chief executive officer. “The accelerating growth rate is an indication of the energy behind our integrated coach model tied to our powerful mission and a repeatable business rhythm capable of delivering long-term sustainable growth. We are confident that we are well positioned for future growth and, based on these strong operational and financial results as well as our positive outlook for the remainder of the year, we are pleased to be able to raise our annual guidance once again this year.”

OPTAVIA-branded products represented 64 percent of consumable units sold for the second quarter of 2018 compared to 30 percent for the second quarter of last year. The average revenue per active earning Coach for the second quarter of 2018 increased 16.1 percent to $5,474 compared to $4,713 for the second quarter last year.

To read the full Medifast Q2 financial report, click here.

Q2 Net Sales Up 12% for Herbalife

by Leave a Comment

Los Angeles-based Herbalife Nutrition Ltd. Yesterday announced financial results for the second quarter ended June 30, 2018.

Net sales of $1.3 billion increased 12 percent compared to second quarter 2017. Volume points of 1.5 billion, the highest amount to be recorded in a quarter in company history, increased 12 percent compared to the prior year period, above the guidance range of 4.0 percent – 8.0 percent.

“Our top-line growth rate accelerated in the second quarter reflecting the strength of our business model to provide solutions to many of today’s global nutrition and wellness megatrends,” said Rich Goudis, CEO of Herbalife Nutrition.

Regionally, net sales were:

  • North America: $262.5 million, a 20.2 percent increase
  • EMEA: $260 million, a 15.7 percent increase
  • Asia-Pacific: $253 million, a 7.4 percent increase
  • Mexico: $118 million, a 2.2 percent increase
  • China: $286.8 million, an 18.2 percent increase
  • South & Central America: $105 million, a 4.5 percent decrease

To read the full Herbalife Q2 report, click here.

Avon Reports Q2 Revenue Down 3%

by Leave a Comment

London-based Avon Products, Inc. (NYSE: AVP) today announced its results for the quarter ended June 30, 2018.

Total revenue decreased 3 percent to $1.4 billion, or increased 1 percent in constant dollars, both including a benefit of approximately 4 percent due to the impact of adopting the new revenue recognition standard and both including an approximate 1 percent unfavorable impact from the Brazil truckers’ strike. Active Representatives declined 4 percent, driven by decreases in South Latin America, primarily Brazil, Europe, Middle East & Africa and North Latin America, or declined approximately 3 percent excluding the Brazil truckers’ strike.

“Entering my seventh month at Avon, I am encouraged by improved revenue growth in three of our top five markets and the promising trends we are seeing across the majority of the rest of our business,” said Avon CEO Jan Zijderveld. “This is underpinned by our improving service quality and operational efficiencies, and in turn reflected in our higher operating margin. However, we are not yet satisfied with the overall operating results of the quarter.”

Regionally, revenue results were:

  • Europe, Middle East & Africa: up 1 percent, or relatively unchanged in constant dollars, both including a benefit of approximately 3 percent due to the impact of adopting the new revenue recognition standard. Revenue and constant-dollar revenue were impacted by a decrease in Active Representatives.
  • South Latin America: down 8 percent, or up 3 percent in constant dollars, both including a benefit of approximately 5 percent due to the impact of adopting the new revenue recognition standard.
  • North Latin America: relatively unchanged, or up 3 percent in constant dollars, both including a benefit of approximately 5 percent due to the impact of adopting the new revenue recognition standard
  • Asia Pacific: down 1 percent, or up 1 percent in constant dollars, both including a benefit of approximately 1percent due to the impact of adopting the new revenue recognition standard.

To read the full Avon Q2 report, click here.

Natural Health Trends Second Quarter Revenue Down 1%

by Leave a Comment

Natural Health Trends Corp. today announced financial results for the second quarter ended June 30, 2018.

Total revenue of $50.9 million decreased 1 percent compared to $51.5 million in the second quarter of 2017, and decreased 3 percent compared to $52.4 million in the first quarter of 2018.

“Our second quarter performance reflected a continuation of the momentum we established in the fourth quarter of 2017,” said Chris Sharng, president of Natural Health Trends. “The 3 percent sequential decline in quarterly revenue can be attributed to the timing of our promotional activities. Major incentive trips, such as those to Australia and Seattle, took our members out of the markets in the second quarter. However, the associated qualification periods concluded in prior quarters.”

Revenue from the company’s Hong Kong operations, which represented 88 percent of total revenue, was $44.6 million, a decrease of 2 percent compared to $45.7 million in the second quarter of 2017. Revenue outside of Hong Kong of $6.3 million increased 9 percent compared to $5.8 million in the second quarter of 2017.

The number of Active Members decreased 2 percent to 93,000 at June 30, 2018, compared to 95,040 at March 31, 2018, and decreased 13 percent compared to 107,290 at June 30, 2017.

For the year, total revenue of $103.3 million decreased 7 percent compared to $111.3 million in the first six months of 2017.

Young Living Foundation Raises $1 Million for Hope for Justice

by Leave a Comment

The D. Gary Young, Young Living Foundation raised more than $1 million to help end modern slavery in Africa during the Young Living Foundation’s Ride for a Reason, Foundation 5k, and other activities.

All funds raised will go to support Hope for Justice, a nonprofit that exists to bring about the end of modern slavery by preventing exploitation, rescuing victims, restoring lives and reforming society.

“Young Living’s compassionate members have generously given to help some of the most isolated and vulnerable communities around the world,” said Jared Turner, president and chief operating officer of Young Living Essential Oils. “I want to thank our members, Scott and Brenda Schuler, who chose to do something larger than themselves by launching the Ride for a Reason fundraising campaign that brought the Young Living family together and assisted in raising over $1 million to support Hope for Justice and help rescue the victims of human trafficking.”

Starting with Uganda, the Foundation will immediately fund three Hope for Justice Lighthouses, each of which will provide trauma care, medical services, education and vocational training, counselling, therapy and safe shelter to survivors from the day they are rescued from slavery to when they are reintegrated into a family centered environment. Each Lighthouse will provide 150 to 200 children who are victims of human trafficking with this type of restorative care and safety each year.

Nerium Appoints Brad Wayment, Mark Nicholls to Global Leadership Team

by Leave a Comment

Addison, Texas-based Nerium International yesterday announced the appointment of direct sales industry veterans Brad Wayment and Mark Nicholls to the executive team.

Mark Nicholls

Mark Nicholls

Brad Wayment

Brad Wayment

Wayment will be the company’s new president of Global Markets starting on August 24. He will oversee global strategy and direct all Nerium’s international operations throughout North America, Asia-Pacific, Latin America and Europe. Prior to Nerium, he worked in the direct selling industry for several companies in various executive roles.

Nicholls was named the company’s chief financial officer. He will direct the finance teams at Nerium’s global headquarters in the United States as well as Nerium offices around the world. Prior to Nerium, he served as CFO at publicly traded and private companies, leading global treasury departments and taxation functions.

Le-Vel Names Drew Hoffman New President

by Leave a Comment

Le-Vel, the direct seller of health and wellness products, yesterday announced that Drew Hoffman has been appointed president, effective immediately.

Hoffman, who began his career at Le-Vel in 2015 as executive vice president and chief legal officer, was promoted to chief operating officer and chief legal officer in 2016. He will continue to serve as chief legal officer in conjunction with this new role and will lead the company’s executive team while providing strategic direction for the daily business operations and long-range objectives of the firm.

“Drew is a seasoned and trusted leader who delivers consistent results,” said CEOs Jason Camper and Paul Gravette. “He has been an integral part of our success over the last few years. We have tremendous confidence in his ability to take Le-Vel to new heights of operational excellence.”

“Jason and Paul have built an outstanding company on the highest standards of integrity,” said Hoffman “I’m incredibly grateful and genuinely excited about the opportunity to help lead Le-Vel into the future. We have so much potential for growth, and I look forward to working with our entire leadership team and our most valued asset—our Thrivers around the world—to continue to build a truly global movement of health and wellness.”

Avon Announces Senior Management Appointments

by Leave a Comment

Avon Products, Inc., the London-based beauty company, today announced the appointments of a new vice president of investor relations and a new chief digital officer.

Amy Greene has been appointed vice president of investor relations, effective August 13. She brings two decades of experience as an industry analyst and as in-house investor relations executive, most recently leading investor relations and corporate engagement at another direct selling company. She also previously as vice president of investor relations & government relations at GNC Holdings Inc., the global vitamin and supplements retailer.

Benedetto Conversano has been appointed senior vice president and chief digital officer. In this newly created role, which will be effective September 3, he will succeed chief information officer Sue Liddie, who is retiring. Conversano most recently served as chief global information officer at Jeronimo Martins, a €16 billion revenue international food, health and beauty retailer.

Heather Payne has been appointed chief technology officer, reporting into Benedetto. She previously served as chief technology officer for DMG Media (Daily Mail Group), an international multi-channel media company, where she oversaw IT changes across all functions of the business, including completing the transformation of technology and change process and co-creating the innovation strategy for the business.

Last week, Avon announced a series of senior appointments for its global brand marketing.

Anna Chokina has been appointed vice president of Global Brand Marketing, Skincare and Personal Care, a $1.6 billion category, effective September 24. She joins Avon from L’Oreal Paris, where as general manager, Russia, she led the business to consecutive years of growth.

Lena Degtyareva will assume the position of vice president, Global Fashion and Home, a $1.4 billion category. She will be responsible for growing Avon’s fashion and home business, which currently delivers a quarter of Avon’s global revenue.

Marco Brandolini has been appointed vice president and general manager, Italy and the Mediterranean, effective September 1. He most recently served as EMEA vice president of Sales & Marketing, Member Services and Technology for another direct selling company.

DSA Independent Contractor Practicum Kicks Off “Year of the Independent Contractor”

by Leave a Comment

Photo: Department of Labor Chief of Staff to the Secretary of Labor, Nicholas C. Geale, presenting at the DSA Independent Contractor Practicum on how the Administration and Department of Labor are positively positioning independent contractors in the marketplace.

On Thursday, July 26, 2018, the Direct Selling Association convened its Independent Contractor Practicum to discuss pathways to protecting the direct selling industry’s most important asset— its salesforce.

Department of Labor Chief of Staff to the Secretary of Labor Nicholas C. Geale was among the leaders meeting with direct selling industry executives to explore how the Administration and Department of Labor are positively positioning independent contractors in the marketplace.

“We are committed to leading the discussion on how to address developments with independent contractor law in this economy by hosting events like the Independent Contractor Practicum and bringing the discussion to Washington. Direct selling is poised to be the retail channel of choice for U.S. consumers and it is important we are diligent in preserving America’s Original Entrepreneurs and the industry,” said Joseph N. Mariano, president and chief executive officer of the Direct Selling Association.

The Practicum agenda included updates on recent legal developments for independent contractor status, implications for independent contractors resulting from the recently enacted Tax Cuts and Jobs Act, and the association’s legislative initiatives. The event also focused on contract development, as well as recognizing social media trends that could affect independent contractor status.

The full Independent Contractor Practicum agenda and speaker information can be viewed here.

Tupperware Announces Executive Changes

by Leave a Comment

Tupperware Brands yesterday announced changes to its executive leadership team.

“As Tupperware Brands turns a new page in its iconic history, we do so with a Global Growth Strategy and Purpose that is clear and focused,” said Tricia Stitzel, president and chief executive officer. “To execute our strategy and fulfill our purpose of enriching lives on a global scale, we are pleased to announce the new leadership team selected to take the organization into the next wave of growth. The new team balances continuity in certain key positions while elevating next generation leaders to deliver on our revitalization plan.”

Effective July 1, 2018, the company named Stein Ove Fenne as group president, Tupperware Europe, Africa & Middle East, succeeding Simon Hemus, vice chairman, who will retire from the company December 31, 2018, as previously announced. Fenne most recently served as senior vice president and president, Tupperware U.S. & Canada since 2012.

Taking over the U.S. & Canada business from Fenne is Jim Bellonzi, who most recently served as senior vice president, Business Transformation.

Effective August 1, 2018, the company named Asha Gupta as executive vice president and chief strategy and marketing officer. Gupta has served as group president, Asia Pacific, since January 2014.

Also effective August 1, 2018, the company named Justin Hewett as group president, Asia Pacific. Hewett has served as area vice president with portfolio responsibility in the company’s Europe, Africa and Middle group since July 2014.

Tupperware Brands Q2 Net Sales Down 7%

by Leave a Comment

Orlando, Fla.-based Tupperware Brands today reported its financial result for the second quarter of 2018. Net sales were $535.4 million, down 7 percent (4% local currency), including a 2-point impact from the 2017 closure of Beauticontrol and the combination of the NaturCare and Tupperware businesses in Japan.

Emerging markets, accounting for 71 percent of sales, were down 5 percent (even in local currency).

The operating units with the most significant local currency sales growth in the second quarter were China, Fuller Mexico, Tupperware Mexico and Tupperware South Africa. The significant decreases were in Brazil, India and Indonesia. Established market sales decreased 10 percent (13% local currency), including a 6-point negative impact from the Beauticontrol closure and combination of units in Japan. The local currency sales decreases were most significant in France and Tupperware Australia and New Zealand.

Regional Sales

The company reported segment sales as follows:

  • Europe: sales were down 2 percent (4% local currency)
  • Asia Pacific: sales were down 2 percent (4% local currency)
  • North America: sales were down 4 percent (1% local currency), including a negative 7-point local currency impact from Beauticontrol wind-down
  • South America: sales were down 23 percent (7% local currency)

For the full year, sales are expected to be down about 4 percent in dollars in Europe; down 4 to 5 percent in Asia Pacific; down 2 to 3 percent in dollars in North America; and down by a mid-teen percentage in dollars in South America.

To view the full Tupperware Q2 2018 report, click here.

USANA Q2 Sales Up 17% Over 2017

by Leave a Comment

Salt Lake City, Utah-based USANA Health Sciences yesterday announced financial results for its fiscal second quarter ended June 30, 2018.

Net sales were $301.5 million, compared with $257.1 million in the prior-year period, a 17.3 percent increase year-over-year.

Celavive, the company’s new skincare line, contributed approximately $7 million in incremental sales for the quarter. In markets where Celavive has launched, skin and personal care products accounted for 9.5 percent of overall sales in the second quarter of 2018, versus 5.7 percent a year ago. The company’s total number of active customers increased 5.3 percent year-over-year to 597,000.

“Our operating results for the second quarter exceeded our expectations and reflect the momentum we are seeing in most of our regions,” said CEO Kevin Guest. “This momentum helped us generate the highest quarterly revenue and earnings per share in the company’s history.”

Regional Sales

Net sales in the Asia Pacific region increased by 21.2 percent to $241.6 million for the second quarter of 2018. Within Asia Pacific, net sales increased 22.8 percent in Greater China; increased 36.1 percent in North Asia; and increased 12.5 percent in the Southeast Asia Pacific region.

Net sales in the Americas and Europe region for the second quarter of 2018 increased by 3.7 percent to $59.9 million, and active Customers in this region declined 4.8 percent.

USANA is updating its outlook for 2018 to consolidated net sales between $1.17 and $1.20 billion; previously it was between $1.13 and $1.17 billion.

To view the full USANA Q2 2018 report, click here.