brand-logo
Subscribe

Herbalife Announces Q4 and Full Year 2024 Financial Report

by

Herbalife reported its financial results for the fourth quarter and full year 2024. Net sales in the fourth quarter were $1.2 billion while net income was $177.9 million. Adjusted EBITDA during the quarter was $150 million, which exceeded guidance. New distributors joining Herbalife increased worldwide by 22% year-over-year in the quarter.

Net sales for the full year 2024 were $5 billion, which was a 1.4% decline from 2023, but at the high end of the company’s guidance range. Adjusted EBITDA was $634.8 million.

The company’s Restructuring Program, which was launched in the first quarter of 2024, is expected to deliver annual savings of $80 million beginning in 2025. Additionally, the company announced that Stephan Gratziani would succeed Michael Johnson as CEO. Johnson will now transition to Executive Chairman and Rob Levy will be appointed President, Worldwide Markets.

“With three consecutive quarters of new distributor growth, a new incoming CEO and significantly improved Adjusted EBITDA margins, we enter 2025 with strong momentum,” Johnson said.

The company described 2024 as a “transformative year for Herbalife” and said its strong margin improvement and progress in debt payment has positioned the company to deliver long-term shareholder value.

Medifast Reports Financial Results for Q4 and Full Year 2024

by

Medifast announced its financial results for the fourth quarter and full year 2024. The parent company for direct selling organization OPTAVIA, Medifast reported fourth quarter revenue of $119 million, a 37.7% decrease from Q4 2023, with OPTAVIA Coaches decreasing in number from 41,100 to 27,100 year-over-year.

Gross profit during the fourth quarter declined 37.6% to $88.2 million from $141.4 million in Q4 2023, which the company attributes to a lower sales volume. Income from operations decreased 91.8% to $0.7 million from $8.7 million in Q4 2023. Earnings per diluted share during the quarter was $0.07.

Full year 2024 revenue decreased 43.8% to $602.5 million, compared to revenue of $1.1 billion last year. Net income was $2.1 million, or $0.19 per diluted share, a significant decline from $99.4 million and $9.10 per diluted share in 2023. Net income decreased 80.8% to $20.2 million.

The company maintains cash, cash equivalents and investment securities of $162.3 million with no interest-bearing debt, up from $150 million in 2023.

“This past year was a pivotal year for Medifast, as we continued to transform our business to meet the changing nature of a health and wellness market that has been revolutionized by the rising acceptance of GLP-1 medications,” said Dan Chard, Medifast Chairman & CEO. “Throughout the year, our team has shown resilience and adaptability as we navigated evolving market dynamics, enabling Medifast to remain positioned to be a leader in health and wellness in a GLP-1 world. We’re committed to offering solutions that meet the diverse needs of our customers, whether they are focusing solely on our habit-based approach to weight loss, using GLP-1 medications, or transitioning off them. As we look ahead, our top priorities center on reestablishing growth across all of our key metrics, including driving coach productivity through accelerated customer acquisition, and expanding the number of active earning coaches. These efforts should allow us to broaden our reach, restore revenue and profitability growth and deliver long-term value to all our stakeholders.”

The company now expects Q1 2025 to include revenue between $100 million to $120 million.

Coway Reports 2024 Financial Results

by

Coway announced its financial results for the fourth quarter and full year 2024. Fourth quarter revenue increased 12.1% year-over-year to $779 million with an operating profit of $127 million, a 10.4% year-over-year improvement. Full year 2024 revenue was $2.9 billion, an 8.7% increase from 2023, with an operating profit of $550 million.

Coway’s overseas subsidiaries reported 2024 revenue of $1 billion, an 8% increase over 2023. Malaysia and the US reported year-over-year increases of 6.6% and 4.4% respectively, with Thailand seeing double-digit year-over-year growth of 24.3%.

“We’re pleased to have delivered stable performance across both domestic and international markets in 2024, even amid challenging business environments,” said Jangwon Seo, Coway CEO. “This success was driven by our disciplined management approach and our commitment to expanding R&D. Looking ahead, as we accelerate our ‘New Coway’ strategy, we will focus on developing differentiated, innovative products and expanding our global footprint to drive sustained growth.”

Coway also debuted its Corporate Value-Up Program, with the goal of expanding the shareholder return ratio from 20% to 40% over the next three years.

USANA’s Asia Pacific Markets Recognized for Product Excellence

by

Five of USANA’s Asia Pacific markets received honors from Euromonitor International, a market research company. Malaysia, Philippines, Singapore, Taiwan and Hong Kong were highlighted by the organization for product excellence, including:

  • No. 1 Combination Dietary Supplement in Malaysa for seven consecutive years
  • No. 1 Co-Enzyme Q10 Supplement in Taiwan for four consecutive years
  • No. 1 Direct Selling Brand for Calcium Supplements in Hong Kong for three consecutive years
  • No. 1 Dietary Supplement in the Philippines for six consecutive years
  • No. 1 Combination Dietary Supplements brand in Malaysia and Singapore
  • No. 1 Calcium Supplement in Malaysia

“We are immensely proud to receive these prestigious Euromonitor awards, which are a testament to USANA’s unwavering commitment to science and innovation,” said Vivienne Lee, USANA Regional Vice President. “To have several of our markets recognized shows that USANA’s quality is truly worldwide.”

Vorwerk Introduces Thermomix TM 7

by

Vorwerk announced the pre-order phase for its new Thermomix TM7 in Europe. The household appliance will now be available for pre-order, with deliveries beginning mid-April. The Thermomix TM6 will still be available in what the company is calling a “farewell bundle” in that region. As for the US and Canada, the company will announce the final arrival date, expected for late 2025.

Thermomix appliances come with a networked ecosystem that leverages state-of-the-art hardware with the Cookidoo recipe portal, including more than 100,000 guided cooking recipes, planning tools and recommendations to optimize and enhance the cooking experience.

“Thermomix is the center of culinary experiences for many people – and we owe this above all to the close exchange with our community,” said Dr. Thomas Stoffmehl, Speaker of the Executive Board of the Vorwerk Group. “More than 116,000 advisors worldwide – together with our customers and employees – are shaping our world’s largest direct sales community for high-quality household appliances.”

Connection is Currency

by

Innovative ways to build customer loyalty.

In a digital landscape that constantly evolves, businesses aiming to forge deeper connections with customers must embrace new trends and approaches. Today’s consumers expect brands to create personalized, meaningful experiences that acknowledge their unique preferences and values.

Customers today expect personalization to be a standard. This is more than addressing users by name in an email. Brands need to show they truly “know” their customers. The Forbes article “The Personalized Customer Experience” emphasizes that personalization means anticipating customer needs based on their behavior, preferences and even lifestyle. Let’s dive into two effective areas companies can make customer connections more genuine.

Real-Time Engagement

Real-time engagement focuses on immediate, meaningful responses, showing customers they’re valued and heard. This often involves:

Social Media Responsiveness

Today, customers expect quick replies on social platforms. By being active, responding promptly to comments, questions or concerns and engaging with followers, brands demonstrate attentiveness. Companies like Wendy’s and Netflix are well-known for their real-time, witty social interactions, which have helped create a more humanized brand image.

Live Chat and Messaging Apps

Implementing live chat on websites or using messaging apps allows for direct, quick communication. Many brands also use chatbot systems for initial interactions, with the option to connect with a real person if needed. This setup ensures customers feel acknowledged immediately, even outside business hours.

Event-Based Notifications

Engaging in real-time around events—such as a customer’s birthday, anniversary or an event relevant to your brand—allows for meaningful and personalized outreach. For example, sending a customized discount on a birthday helps brands connect with customers in a way that feels timely and authentic.

Proactive Support

Reaching out proactively when a known issue arises (e.g., site downtime or delivery delays) shows transparency and concern. It turns a potential negative experience into an opportunity for trust building, as customers appreciate the effort to keep them informed in real time.

Loyalty Programs with a Twist

Modern loyalty programs are moving away from the traditional point system and instead offering unique, personalized rewards that foster a deeper emotional connection. Here’s how companies are innovating in this area:

Experiential Rewards

Rather than just offering discounts, brands can reward customers with exclusive experiences. For example, a fitness brand could provide loyal customers with access to an online class with a well-known instructor or invite them to a virtual Q&A session. These experiences create memorable interactions that go beyond transactions.

Tiered Rewards with Personalization

Personalized tiers in loyalty programs can make customers feel recognized. Sephora’s Beauty Insider program, for instance, offers customers different perks depending on their spending level, such as free samples, early access to sales and exclusive products. It’s not just about points—it’s a pathway to tailored, exclusive rewards that make customers feel part of a select group.

Surprise Rewards

Unannounced “surprise-and-delight” rewards—like sending a gift or exclusive offer after a customer’s milestone purchase—add an unexpected personal touch. Customers feel appreciated without expecting anything, which can increase loyalty and positive word-of-mouth.

Social- and Community-Based Rewards

Many brands now foster community engagement by rewarding customers for actions like sharing on social media, writing reviews or referring friends. Patagonia, for example, encourages customers to participate in environmental initiatives and rewards them through their brand community, creating a strong shared mission.

Value-Based Rewards

Reflecting customers’ values within the rewards system helps deepen the connection. For instance, a brand that donates a portion of loyalty points to a charity the customer cares about allows customers to feel their loyalty supports a greater cause aligned with their values.

From the January/February 2025 issue of Direct Selling News magazine.

Nu Skin Reports Q4 and Full-Year 2024 Financial Results

by

Nu Skin Enterprises Inc. announced its financial results for the fourth quarter and full-year 2024. Revenue for 2024 reached $1.73 billion, a 12% decline from 2023. This decrease was offset by Rhyz revenue in 2024, which increased by 32.3% to $286.6 million.

Fourth quarter revenue was $445.6 million, down 8.8% from the fourth quarter of 2023. Customers during the quarter totaled 831,972, which represented a 15% decrease year-over-year. Paid Affiliates also declined (13%) year-over-year to 144,874, as did Sales Leaders (16%) to 36,912.

“We were pleased to beat our fourth quarter revenue guidance, generate sequential revenue growth and exceed our adjusted earnings as we materially completed our restructuring plan,” said Ryan Napierski, Nu Skin President and CEO. “As we look ahead to 2025, we anticipate improving business trends and a return to year-over-year growth in several of our markets but also anticipate continued economic challenges and poor consumer sentiment, particularly in Greater China and South Korea.”

The company stated that its 2025 focus would be on strengthening its core Nu Skin business with a continued rollout of its enhanced sales performance compensation plan in a number of markets, particularly in developing markets like Latin America. The company’s strategic transaction of Mavely for $250 million strengthened the company’s balance sheet and “underscored the value of Rhyz to incubate and scale meaningful business.”

Gross margin for Nu Skin business in 2024 was 67.5% (76.6% excluding inventory write-off) compared to 77.4% in 2023. Selling expenses remained stable at 37.1%, while “other income” increased to $1.1 million, compared to $0.6 million in 2023.

The company now forecasts Q1 2025 revenue between $345 million to $365 million with full-year 2025 revenue expected between $1.48 billion to $1.62 billion.

“We are encouraged by our recent progress in strengthening our business by driving sequential growth in our core Nu Skin business, improving operational efficiencies and delivering strong cash flow,” said James D. Thomas, Nu Skin Chief Financial Officer. “As we look ahead to 2025, our annual revenue guidance is $1.48 to $1.62 billion, with an approximate 3% foreign currency headwind. We anticipate reported EPS of $3.45 to $3.85 and growth in our adjusted EPS, which we estimate to be $0.90 to $1.30, excluding the gain from the sale of Mavely. For the first quarter, which is typically our lowest quarter due to seasonality of our business, we project revenue of $345 to $365 million. This assumes a negative foreign currency impact of approximately 3%, with reported earnings per share of $2.65 to $2.75 or $0.10 to $0.20, excluding the gain from the sale of Mavely. As we’ve executed on our restructuring plan and improved our cost structure, we are better positioned to execute our strategy and drive earnings growth in 2025.”

Lessons Learned from Publicly Traded Direct Selling Companies

by

Key trends and takeaways found in a deep dive of public company performance.

Although many direct selling companies are private, there are a few leaders in our channel that are publicly traded. I was recently involved in an analysis of public US direct selling companies as a project for the DSA Industry Research Committee (IRC). The goal of this project was to examine public direct selling company stock performances to ascertain any lessons we can learn from them as our channel continues to transition into a more competitive and relevant distribution channel and business opportunity.

The IRC subcommittee has analyzed the stock performances of select public direct selling companies in the following categories:

Performing: Stock gains during the last 3 and 12 months.

Challenged: Stock losses during the last 3 and 12 months.

Challenged but Possibly Improving: Stock gains during the last 3 months only (overall loss during the last 12 months).

The IRC has evaluated the performance of the above groups of company stocks in relation to the Vanguard/S&P 500 and GIG company stocks for sample portfolios of $100,000. IRC Subcommittee members utilized annual and quarterly public reports to analyze the root causes of major shifts in stock performances.

In this article, I will share the key insights and takeaways from this research. Information is important, but what turns information into results is utilizing the information to improve your business.

The Impact on Stock Values

We did analysis on 11 public companies. Most have had declines of various KPIs since 2016 including sales, recruiting, distributor engagement, customer acquisition, customer retention, compensation to distributors and profitability. The variance of those KPIs depends on which company you are researching.

We reviewed the stock values over the last three months, one-year, three-year and five-year period. Below is a chart summarizing those findings.

We also compared the stock performance against the GIG company stocks and the Vanguard/S&P 500 and GIG company for sample portfolios of $100,000. Once we looked at the data through the stock prices, we then reviewed the public data to see what commonalities and challenges existed. As you can see from the charts below.

Common Opportunities and Challenges

We first looked at commonalities between the public companies, allowing us to identify challenges and where companies were focused on improving their businesses. Challenges identified include:

  1. Multi-year declines in stock values, sales, customers, new distributors, distributor engagement and leadership.
  2. Prospecting for customers and distributors in a growing competitive landscape.
  3. Regional and global inflationary environments.
  4. Negative currency fluctuations.
  5. Growing global economic and geopolitical challenges.
  6. Growing regulatory and legislative overreach.
  7. Cultural misalignment in behavior and customs.
  8. Supply chain issues.
  9. Rising operational costs.
  10. Labor challenges.
  11. High levels of debt.
  12. Rising costs of debt.
  13. Effectively managing change.
  14. Diversification of the business model.

Comparing Results

There were clear differences in areas of the business that varied when we analyzed the three groups. In the chart below, I have categorized these areas into this table.

Six Key Takeways and Suggestions

  1. The longer it takes to establish sales growth, the deeper the decline and the more challenging it is to recover. Priority one should be establishing sales growth and implementing plans to maintain it.
  2. Rightsizing was a common focus in the current market landscape. It seems to become a growing priority if (1) sales continue to decline; (2) the company is not profitable; and (3) if the company lacks financial resources to invest into the evolution and competitiveness of its business. If you are in a rightsizing phase of your company, it is important to understand that small decisions can have major consequences. Often managing change is a process, not an event. Taking on too much change at one time creates additional challenges, so prioritize the changes you plan to make and be sure that any decision made by the company is examined from short-, mid- and long-term perspectives.
  3. A decline in the base generally equates to a decline in the business. The base is made up of your customer, retailers and junior leaders. If these groups are growing, leadership will grow. If you want to build a stable company that continues to drive momentum, you need to focus on building the base. Keep in mind this group generally represents 70-95 percent of sales, recruiting and customer acquisition. The best way you can help your leaders is to help them grow and strengthen their base.
  4. Experiences define a business. If those in your community are not experiencing a business that supports them, then you are at risk of losing them. That applies to distributors and employees. It might be useful to assess where the experiences in your business need to improve. You will likely find the challenges and solutions are tied to trust gaps, ineffective communication and managing the business with a transactional mindset vs. a people-centric mindset.
  5. Companies that are performing are focused on strengthening timeless fundamentals which include increasing the customer base; strengthening distributor prospecting; and engaging and increasing their brand visibility. These are key areas that the company should focus on improving to create a stable environment for continous growth and momentum.
  6. Many struggling companies are holding on to the past. Remember, the most dangerous mindset in a fast changing marketplace is that “we have always done it this way.” Assess your beliefs and examine whether they need to change to move the business in a better path forward.

Moving Forward

In the end, information is as useful as your ability to utilize it. Embrace change. Understand that the competition for customers, business opportunity and employees is going to get more challenging. Building a business model for the future generations will continue to be a key focus for long-term growth. No company can survive and thrive without sales growth and profitability. The good news is that we are seeing a growing number of companies improving these areas and are positioned to be the future leaders in direct selling. There is room for everyone to grow.

Gordon Hester PM-International

GORDON HESTER is a direct selling veteran, lecturer, consultant and author with over three decades of experience in direct selling with an emphasis on strategic development, analysis and sales. He is also Chair of the Florida Direct Selling Coalition.

Super Patch Collaborates with Mark Macdonald

by

Super Patch announced a partnership with Mark Macdonald, New York Times bestselling author and frequent TV guest. Macdonald is known for his expertise in nutrition, fitness and overall health, as well as his contributions to global health movements around the implications of gut health and blood sugar balance for healthy living.

Together, the two parties will leverage media and event experiences to provide education that raises awareness about the mind-body connection using Super Patch’s technology and expand the product’s community reach. The two will also endeavor to create professional partnerships with health facilities, medical offices, chiropractic offices, medispas and personal training studios.

“We are thrilled to collaborate with Mark Macdonald, whose expertise and passion for health align perfectly with our mission at Super Patch,” said Jay Dhaliwal, Super Patch CEO. “This partnership significantly advances our efforts to deliver innovative and effective health and wellness solutions to a global audience.”

Olive Tree People Inc. Sees 1,000%+ January 2025 Growth

by

Oliveda International, Inc. reported that its subsidiary Olive Tree People Inc. grew more than 1,000% in January 2025.

The company will now transition away from its strong retail footprint in Europe, which includes flagship stores in Berlin and Düsseldorf, to expand its European direct-to-consumer channel.

“I am convinced that direct-to-consumer is the perfect match for waterless beauty, and so after 20 years of retail, we will clear the shelves in all European countries in which we are represented, and from autumn 2025, we will conquer the European continent with more than 50,000 waterless beauty consultants,” said Thomas Lommel Olive Tree People Founder.

The company describes itself as the “fastest growing waterless beauty company in the world” and expects to attract 120,000 waterless beauty consultants by the end of 2025.

Modere Debuts Beta Launch of Brand Partner Program in the UK

by

Modere announced the beta launch of its Brand Partner Program in the United Kingdom (UK). The program was designed with the intention to enhance flexibility for social sellers and broaden access to income opportunities.

Modere’s model is an integrated approach, blending both network marketing and social selling. This structure makes the Social Marketer and Promoter models a core piece of the company’s design, rather than an affiliate-only afterthought. Participants in the Brand Partner Program will now have the opportunity to earn 15% commission on sales, with additional opportunities for bonuses and incentives.

“Modere has always been ahead of the curve, creating modern, sustainable solutions in direct sales,” said Nate Frazier, Modere Executive Chairman and President. “Unlike traditional network marketing companies that have struggled to integrate affiliate-style models into outdated compensation plans, Modere designed its system from the ground up to seamlessly support both social selling and direct-to-consumer referrals. The Brand Partner Program is the next evolution of that vision, creating an even more dynamic and scalable opportunity for our community.”

Modere emphasized that the Brand Partner Program is not a replacement for its Social Marketer program, but rather a strategic expansion that complements and enhances its Social Retail model.

“Our Social Marketers are the backbone of our success,” said Julie Sullivan, Country Manager, Modere UK & Ireland. “The Brand Partner Program enhances this ecosystem by attracting influencers, entrepreneurs, and gig-economy professionals who want to share Modere’s clean-label products with their audiences while maintaining flexibility. It’s an evolution that fuels our growth and expands opportunities for all participants.”

Mary Kay Celebrates International Day of Women and Girls in Science

by

Mary Kay Inc. welcomed 30 students from Lewisville high School to its Richard R. Rogers Manufacturing/R&D Center to learn about the potentials of a career in STEM. Students were given a guided tour of the facility and learned about opportunities to work in a STEM-related career in the global beauty and manufacturing industry. The event was designed to inspire and encourage the next generation of female STEM leaders.

Students participated in a Cosmetic Chemistry class and hands-on experiment that illustrated the process of building complex product formulations and allowed them to create their own Mary Kay Unlimited Lip Gloss.

“Empowering and inspiring the next generation of female scientists and innovators is a winning formula ensuring women are more equally represented in the future of STEM,” said Dr. Lucy Gildea, Mary Kay Chief Brand and Scientific Officer. “By giving them the tools and knowledge to explore STEM fields, we’re nurturing future leaders who will shape the beauty and STEM industries. Witnessing their curiosity take hold and the spark ignite as they imagine the possibilities of their future in STEM – it’s tremendous!”