Herbalife Updates Guidance - Quick Facts

(RTTNews) - Herbalife (HLF) announced, as a result of current sales trends during the transition in the US, combined with softer trends in Mexico, the company updated its volume, net sales and EPS guidance for the second quarter and the full year 2017. The updated guidance reflects an increase in EPS and adjusted EPS but a decrease in volume and net sales. For the twelve months ending December 31, 2017, the company expects: adjusted EPS in a range of $4.10 to $4.50; and sales growth in a range of 0.5% to 3.5%.

Herbalife believes that the second quarter of 2017 will be the most challenging quarter of the year from a comparative perspective given that last year's second quarter volume was the largest in the company's history. The company expects its second-quarter adjusted EPS in the range of $0.95 to $1.15; and a sales decline of 6.0% to 2.0% from previous year.

Herbalife also reported that, in May, 90 percent of United States sales were documented purchases by consumers, comprised of more than three million receipted retail transactions. The results exceeded the 80 percent threshold called for in the company's agreement with the U.S. FTC. While the 80 percent threshold is an annual test, the company believes the one-time off-cycle announcement is important to share with distributors in order to recognize their significant role in achieving the May 2017 milestone.

Herbalife also announced that approximately 400,000 customers have converted or signed up as preferred members in the U.S. since the program began in October 2016.