Why Herbalife Stock Is Up Today
The healthy living trend is good for business.
Herbalife's stock surged 8% on Tuesday after the company reported impressive growth in revenue and cash flow for the third quarter. Net sales increased 6% year-over-year, reaching $1.35 billion. The Asia Pacific segment showed remarkable growth, with sales climbing 18%. Herbalife relies on over 3 million independent distributors who market the products directly to their personal networks through various channels.
Interim CEO John DeSimone highlighted the importance of each distributor's personal connection to customers, emphasizing that no company could replicate this personal touch. Adjusted net income rose 33% to $68.5 million, or $0.64 per share, while year-to-date operating cash flow expanded by 27% to $298 million. The company's growing profits enable it to reduce debt and increase capital returns to shareholders.
Herbalife announced a $250 million stock buyback program in September and raised its full-year projections due to ongoing sales trends. Management now expects net sales to grow by 4.9% to 5.9% in 2026, up from the previous forecast of 2.5% to 5.5%.
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