Herbalife (HLF -11.4%) CEO Michael Johnson spent a lot of time emphasizing the health benefits of the company's products, specifically the obesity-fighting benefits. He said that focusing on "wellness" and "fitness" will be the growth drivers going forward. It has invigorated the U.K. market, for example, by attracting a younger demographic into Nutrition Clubs.
Mr. Johnson is highly confident that the FTC investigation into Herbalife's business model will have a positive outcome. He stated that 97% of the product sold in the U.S. is consumed by the end user.
Over 13,000 people attended the company's recent Extravaganza in Chicago. Attendance was up 24% compared to 2013.
Average order in Mexico was down 60%, but increased volume of orders compensated.
Q3 guidance: non-GAAP EPS: $1.49 - 1.53.