Herbalife down big while other direct sellers see modest gains

Global expansion, improved recruitment and in-person events drive profits

Herbalife 

Slumping sales in North America and China sent Herbalife to a 70% nosedive in first-quarter profit to $29.3 million.

The MLM giant reported sales during the first three months of the year were down by 6.3% to about $1.3 billion. That includes an 8.9% decline in North America, and continued sluggish performance in China, where sales dipped 36% compared to the same period a year ago.

CEO Michael Johnson said despite plunging revenue, the company will grow and results will improve. 

“We’re evolving. And that’s what’s been happening over the last six months, and it’s going to continue,” Johnson told analysts during a recent earnings call. “We still aren’t where we want to be, but we have embarked on a significant journey.”