A few notes from Herbalife's Q2 CC

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.

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Comments (12)
  • Judicious
    , contributor
    Comments (442) | Send Message
    They should have had King Tut on the call. He is a pyramid expert!
    29 Jul 2014, 12:18 PM Reply Like
  • Jeffjacobjames
    , contributor
    Comments (1188) | Send Message
    While HLF had a .02 earnings miss, the company is still making great profits and will continue the buybacks. Buy the dips! HLF always rebounds from these temporary drops! The only thing that matters is the FTC CID decision. The rest is just noise!
    29 Jul 2014, 12:25 PM Reply Like
  • Dampflok
    , contributor
    Comments (1416) | Send Message
    shareholders capital is wiped out already, but continue the buy-backs!
    29 Jul 2014, 01:53 PM Reply Like
  • Sk8ter2013
    , contributor
    Comments (148) | Send Message
    Lock MJ up and be done with it already!
    29 Jul 2014, 12:22 PM Reply Like
  • Judicious
    , contributor
    Comments (442) | Send Message
    I wish I could share photos on here. One of the "nutrition clubs" in my area just started something called "Healthy Habits for Kids" where they bring a bunch of them in once per week, feed them those garbage shakes and then play with them in the park. Disgusting.
    29 Jul 2014, 12:30 PM Reply Like
  • rubiconrich
    , contributor
    Comments (257) | Send Message
    A lot better than a "value" meal with a coke... and some toy that's given out as an addictive prompt... while obesity runs rampant... now... that's disgusting. Kids running around in a park... having fun with other kids...sounds good to me.
    29 Jul 2014, 12:35 PM Reply Like
  • Judicious
    , contributor
    Comments (442) | Send Message
    There are no health benefits, and I would be willing to bet there are actually negative health consequences to small children consuming meal replacement shakes.
    29 Jul 2014, 12:39 PM Reply Like
  • Matt Stewart
    , contributor
    Comments (1180) | Send Message
    Recruiting data is decelerating...saturation
    29 Jul 2014, 12:32 PM Reply Like
  • Distributor Dan - Debate Ov...
    , contributor
    Comments (470) | Send Message
    When was the last time anybody saw a branded vehicles or a distributor wearing branded clothing in their neighborhood, or anywhere for that matter?


    As anyone can see on Facebook, we all wear our branded gear and drive our branded vehicles everywhere and we're just about beginning to make an impression, but only just scratching the the surface. The "saturation" theory is one of the short side's very weakest...
    29 Jul 2014, 01:14 PM Reply Like
  • mapgirl
    , contributor
    Comments (48) | Send Message
    Much as I believe that $HLF is a pyramid scheme; it will be very hard for the FTC to win their case. Herbalife has been very clever running their company in the gray zone of the trade laws on MLM. On top of that, all the buy backs of stock has been another clever way to manipulate the stock share price. Hard to short.
    29 Jul 2014, 12:45 PM Reply Like
  • ash187
    , contributor
    Comments (222) | Send Message
    Nope, not at all, see FTC vs Burnlounge, Omnitrition. All the case precedent set out for all to see. Herbalife will be wrapped up in a few weeks.


    Now for all the HLF longs still drinking Formula 1 koolaid, have a a look at the free cash flow generation for the last three quarters. The business is bleeding cash just to buy its own stock. Negative equity, probably some broken banking covenants in there, rapidly losing-its-value inventory. Fire up the Clorox cos this turd is going down.
    29 Jul 2014, 01:57 PM Reply Like
  • Truthfirst
    , contributor
    Comments (600) | Send Message
    Carl Icahn/George Soros/ Bill Stritiz and all the rest


    Just put an end to this short attack and save the company millions wasted dealing with this Ackman idiot (and his followers)


    Go forward with the buy back and move ahead with the privatization


    end this stupidity
    29 Jul 2014, 08:09 PM Reply Like
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