Is Herbalife’s Sales Miss a Warning Sign?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 29 (Bloomberg) -- Bloomberg’s Cory Johnson examines the business of Herbalife as second-quarter results missed earnings projections and caused the company to lower its sales forecast for the year. He speak son “In The Loop.”

Herbalife and some called last week and said if i would take a look at it.

When i look at the business, the numbers of what is going on, we started to see some trends that show themselves farther.

The sales growth is really slowing in this company.

We saw seven percent year-over-year growth, over 12%, after 19%. if you were to go back a couple of years, you would looking at his this is growing at 30 or 40% year over year.

The sales growth is rapidly declining.

Could this be because of bill ackman's claims, they have been forced to clean up their act?

They are not trying to expand into more emerging-market countries, into latin america.

Could this be one of the reasons?

Maybe they had to improve their standards.

Do we think that people in emerging markets are a attention to bill ackman's short?

Maybe, at the parent company level, they are realizing maybe we need to stop our recruiting tactics because we are getting found out.

That is the whole business.

It is likely that the people in venezuela and mexico are not watching his presentations.

We know that they are in los angeles.

A change a lot of these.

They think they are becoming less.

The numbers for mexico were disappointed.

Just revenue.

They are not growing at all.

You can see some material slowdown in the business.

I will be speaking to their cfo.

The thing that is so bizarre about this whole dispute.

This is not a walmart or target.

This is a niche player.

How do you make this a substantial company.

There is player of back eddy water.

Do they need to be something bigger?

If they want to see their stock price continued to grow him a yes.

What do you think about the fact that we have seen senior insider selling their shares?

You cannot always make something out of that.

When i was a short seller, when i was looking for happenings, bad things going on, sometimes it look like it was stumbling but it is not always clear.

You cannot jump to any conclusions.

It matters a little bit to revenue, especially when you're talking about high profit revenues, like what they're doing in venezuela.

This is a very important market for these guys.

They took a $67 million charge last quarter to revenue because of the exchange rate wasn't what other companies were doing.

You've seen big companies change their currency valuation for venezuela.

If they were to just in the way that tupperware and avon did, they might actually lose a lot of revenue or might have to take an going back.

I would love to know why they decided that the goal of our trade is 10 below with other companies that no that it is actually -- i can go to lunch before the

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change