Here are 1-2 brief analogies for Herbalife:

• Amway for nutrition and weight management.

• Mary Kay for diet and wellness products.

Herbalife's major products primarily fall into the following categories:

• Formula 1 Nutritional Shake Mix: A flagship meal replacement protein shake designed for weight management and daily nutritional intake.
• Targeted Nutrition Supplements: A diverse range of dietary supplements addressing specific health needs like heart health, digestive health, and immune support.
• Energy & Fitness Products: Supplements, hydration drinks, and protein products aimed at boosting energy, improving athletic performance, and aiding post-workout recovery.
• Outer Nutrition/Personal Care: Skincare, hair care, and body care products designed to support healthy skin and hair.

Herbalife (symbol: HLF) sells primarily to individuals through a direct selling model, leveraging a global network of independent distributors.

Categories of Customers:

• 1. Independent Distributors (Members)

  These are individuals who sign up with Herbalife to purchase products directly from the company. They are Herbalife's direct customers in terms of product purchases. Distributors typically buy products for two main reasons:

  • Personal Consumption: They consume the products themselves, often at a discounted price, for their own health and wellness goals.
  • Resale and Business Building: They resell products to other individuals (retail customers) and may also build their own network of distributors, thus generating income through product sales and commissions.

  Essentially, these distributors are both direct purchasers from Herbalife and the company's sales force.

• 2. Retail Customers (End Consumers)

  These are individuals who purchase Herbalife products from the independent distributors for their personal consumption. While they do not purchase directly from Herbalife International, they are the ultimate consumers of the products. Their demand for Herbalife's nutrition, weight management, and personal care products drives the entire sales chain, as distributors purchase from Herbalife to fulfill the needs of these retail customers.

Stephan Gratziani, President, Chief Executive Officer

Appointed CEO in January 2024, Stephan Gratziani is the first distributor since founder Mark Hughes to lead Herbalife.

John DeSimone, Chief Financial Officer

John DeSimone was reappointed Chief Financial Officer in 2024, a position he previously held at Herbalife from 2010 to 2018. He joined Herbalife in 2007. Prior to joining Herbalife, Mr. DeSimone held senior financial roles, including controller, vice president of finance, and chief financial officer, at Rexall Sundown Inc., a multinational supplement and sports nutrition company.

Michael O. Johnson, Executive Chairman, Chairman of the Board

Michael O. Johnson has served as CEO of Herbalife multiple times, including from 2003 to 2017, again from 2019 to early 2020, and from October 2022 to May 2025. Before his time at Herbalife, he was the president of several divisions at The Walt Disney Company, including Walt Disney International, Walt Disney Asia, and the Worldwide Home Entertainment division of Walt Disney Studios. During his leadership at Disney, he increased the company's international markets from 34 to 80.

Ibi Montesino, Managing Director, North America

Ibi Montesino is the Managing Director for Herbalife's North America region, where she is responsible for all business, strategy, sales, and marketing functions across the U.S., Canada, and Puerto Rico, and oversees worldwide events. She brings over 12 years of leadership and expertise to this role, having previously served in this capacity from 2011 to 2023.

Dr. Luigi Gratton, Vice President of the Office of Health and Wellness

Dr. Luigi Gratton is the Vice President of the Office of Health and Wellness at Herbalife, where he is responsible for ensuring that Herbalife Independent Distributors understand product benefits. He is also the chairman of the Herbalife Nutrition Advisory Board. Dr. Gratton is a physician specialist in family medicine and a clinical physician at the UCLA Center for Human Nutrition in the risk factor obesity program. He holds a medical degree from Mount Sinai Medical School of New York University and completed a postdoctoral fellowship in clinical nutrition at the David Geffen School of Medicine at UCLA.

Key Risks to Herbalife (HLF)

1. Regulatory Scrutiny and Challenges to Multi-Level Marketing (MLM) Business Model: Herbalife's MLM business model has consistently been a target of regulatory scrutiny and legal challenges globally. The company has faced investigations and settlements with regulatory bodies, including the Federal Trade Commission (FTC) and the Securities and Exchange Commission (SEC), regarding its business practices and how it differentiates between product consumption by end-users and recruitment of distributors. Changes in regulations concerning MLM practices in various markets pose an ongoing threat to its operational model and compliance costs. Furthermore, the MLM model often carries negative perceptions among consumers and potential recruits, which can hinder growth and trust.

2. Declining Sales Volumes and Revenue Stagnation: Herbalife has experienced a sustained period of weak sales volumes and pressure on earnings per share (EPS), contributing to a cautious outlook for growth. The company has reported a decade of revenue stagnation and shrinking margins since 2018, with average quarterly sales volumes contracting. Lower revenues are directly linked to decreased sales volumes and a reduction in the number of Sales Leaders and distributors. Economic downturns can further exacerbate this risk, as consumers may reduce discretionary spending on premium-priced products offered by Herbalife.

3. Dependence on Distributors and Related Disruptions: The success of Herbalife's business is heavily reliant on the performance and continued engagement of its extensive network of independent distributors. Challenges such as distributor struggles, recruitment slowdowns, or disruptions within this network can significantly imperil the company's future prospects. Additionally, Herbalife has limited control over how individual distributors market and sell products, which can lead to inconsistencies and potential compliance issues, as well as the risk of distributors accumulating excess inventory to meet sales quotas.

1. Proliferation of E-commerce and Direct-to-Consumer (DTC) Health and Wellness Brands

The rise of sophisticated e-commerce platforms, subscription models, and a multitude of direct-to-consumer (DTC) health and wellness brands directly challenges Herbalife's traditional multi-level marketing distribution model. Consumers can now easily purchase similar nutritional supplements and weight management products directly online, often benefiting from perceived better transparency, competitive pricing, and convenience, without the need for an independent distributor. This trend threatens to erode Herbalife's customer base by offering alternative, often more modern and convenient, purchasing avenues. This is analogous to Netflix threatening Blockbuster, where a new, more efficient distribution model (online streaming) rendered the traditional physical distribution network less relevant.

2. Competition from Diverse Gig Economy Opportunities for Distributors

Herbalife's business relies heavily on recruiting individuals seeking flexible work and supplementary income to become distributors. The significant growth and diversification of the broader gig economy, encompassing platforms like ride-sharing, food delivery, online freelancing, and social media influencing, provide numerous alternative income-earning opportunities. These alternatives often present simpler, less capital-intensive, or more immediately remunerative options compared to the complexities of building a multi-level marketing business. This expanding landscape of flexible work directly competes for the same pool of potential distributors, making it increasingly challenging for Herbalife to recruit and retain its sales force. This is analogous to Uber threatening traditional taxicab businesses by offering an alternative, often more appealing and flexible, model for individuals to earn money.

Herbalife (symbol: HLF) operates in several addressable markets for its main products and services, primarily focusing on nutrition, weight management, and personal care.

• Global Weight Loss Market: This market was valued at approximately $192.2 billion in 2023. Another estimate indicates the global weight loss market was USD 165.5 billion in 2023 and is projected to reach USD 399.3 billion by 2032.
• Global Weight Loss Supplements Market: The market size for weight loss supplements globally was valued at USD 24.63 billion in 2023. It is projected to grow to USD 77.21 billion by 2032.
  • U.S. Weight Loss Supplements Market: Within the global market, the U.S. weight loss supplements market is projected to reach USD 17.23 billion by 2032.
• Global Dietary Supplements Market: This market was estimated at USD 192.65 billion in 2024 and is projected to reach USD 414.52 billion by 2033.
• Global Wellness Market: While broader, Herbalife's products contribute to the global wellness market, which is projected to reach $7 trillion by 2025.
• Personal Care / Outer Nutrition Products: Herbalife offers a line of personal care and outer nutrition products including skincare and haircare. Market size for these specific products globally: null.
• Sports Nutrition Products: Herbalife provides sports nutrition products. Market size for these specific products globally: null.

Herbalife (HLF) anticipates several key drivers for future revenue growth over the next 2-3 years, as outlined in recent earnings calls and releases:

1. Enhanced Distributor Engagement and Recruitment: Herbalife is focusing on initiatives to energize its independent distributor network and attract new distributors. Efforts include new training programs like the Diamond Development Mastermind Program and the Herbalife Premier League, which are aimed at improving distributor performance, engagement, and retention. The company has observed a return to new distributor growth in regions like North America, marking a significant turnaround after previous declines. This renewed focus on distributor support and recruitment is expected to expand the sales force and subsequently drive revenue.
2. Product Innovation and Expansion in Health and Wellness Trends: The company is capitalizing on growing health and wellness trends by launching new products and expanding existing lines. Examples include the introduction of the HL Skin skincare line, the MultiBurn weight loss product, and the Herbalife24 prolonged energy gel in various markets. Herbalife also plans to launch personalized supplements in 2026, further aligning with consumer demand for tailored nutrition. Investment in a new R&D and quality control facility in California underscores this commitment to product innovation.
3. Digital Transformation and Personalized Nutrition Platforms: Herbalife is investing in technology and digital tools to enhance its business model and distributor capabilities. The expansion of the Pro2col app, a next-generation personalized digital health platform, is central to this strategy. This platform is designed to offer personalized nutrition at scale and support distributor growth through advanced digital experiences, which is expected to drive future sales.
4. Strategic Pricing and Cost Savings Initiatives: The company has implemented strategic pricing actions that have positively contributed to gross profit margins and offset some headwinds. Alongside pricing, ongoing cost savings initiatives implemented in 2024 have also contributed to improved adjusted EBITDA and are expected to continue supporting profitability and, indirectly, revenue growth by allowing for greater investment in growth areas.
5. Growth in Key Geographic Markets: Herbalife has reported a return to net sales growth in North America, its first quarterly increase since Q2 2021, and on a worldwide basis since Q1 2024, indicating stabilization and potential for continued growth in these crucial markets. Additionally, regions like Latin America and EMEA have shown consistent year-over-year sales growth, and markets such as India are outperforming. The focus on expanding the distributor and customer base in these regions, including emerging markets like China, is anticipated to be a significant revenue driver.

Share Repurchases

• A three-year $1.5 billion share repurchase program was authorized on February 9, 2021, with approximately $985.5 million of authorized capacity remaining before it expired on February 9, 2024.
• Herbalife's annual share buybacks were $146.7 million in 2022 and $8.3 million in 2024.
• Share repurchases amounted to $4.6 million for the quarter ending June 30, 2025.

Share Issuance

• In the six months ended June 30, 2023, 1.5 million common shares were issued from the exercise of SARs, restricted stock units, and the employee stock purchase plan, totaling $1.5 million.
• Additional capital from share-based compensation was $22.0 million for the six months ended June 30, 2023.
• Shareholders approved the 2023 Stock Incentive Plan, allowing for the issuance of up to 8,500,000 common shares.

Outbound Investments

• In the first quarter of 2025, Herbalife completed three strategic acquisitions focused on personalized nutrition and wellness, investing $25.5 million in cash.

Capital Expenditures

• Capital expenditures for the year ended December 31, 2023, including investments in the Herbalife One digital technology platform, were approximately $135 million.
• For the full year 2024, expected capital expenditures are projected to be between $120 million and $150 million, plus an additional $20 million to $25 million for capitalized SaaS implementation costs.
• Anticipated capital expenditures for the full year 2025 are in the range of $90 million to $120 million. The primary focus of these expenditures includes the Herbalife One digital technology platform and the Transformation Program to optimize global processes.