Is downtown-based Herbalife Nutrition Ltd. losing some of its mojo?
Maybe. Herbalife stock started sliding in February after its year-end earnings report and has lost nearly half of its value since then, substantially outpacing the overall drop in the markets.
Not helping was a first-quarter earnings report that was weak compared to 2021, with revenue down 11% to $1.33 billion and net income down about 33% to $98 million.
Herbalife sells a range of nutrition products using a network of more than 6 million distributors – which it calls members – in 95 countries. The products are for a variety of uses, including weight management, fitness, nutritional supplements and skin/body care.
In its earnings report issued on May 3, Herbalife attributed some of the sales slowdown to its newest group of distributors.
Herbalife Chief Executive John Agwunobi provided some additional insight in the teleconference call following the earnings release.
“Most of the distributors that joined Herbalife during the pandemic have never been to an in-person event, and there is no substitute for gathering in person for learning, collaborating and motivating,” he said.
Toward the end of the first quarter, Herbalife began reinstituting in-person distributor events.
“The interactive discussions, the face-to-face team building and the social elements that are