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Herbalife now expects adjusted profit of 95 cents-$1.15 per
share in the second quarter ending June 30, compared to the 88
cents-$1.08 per share it expected earlier.
However, the company said it expected sales to fall by 6-2
percent due to the transition to the new FTC rules in the U.S.
along with softness in its Mexico business. Herbalife had
earlier expected sales to fall by 4.5-0.5 percent.
The Los Angeles-based company also said that 90 percent of sales
in the United States in May were documented purchases by
consumers, exceeding the 80 percent threshold called for in its
agreement with FTC.
"These figures should put an end to any questions regarding
demand for our nutrition products and the strength of our
go-to-market business model," Chief Executive Richard Goudis
said.
Herbalife, which has been accused by billionaire investor
William Ackman of being a pyramid scheme, agreed to pay $200
million and change the way it does business to avoid being
labeled as such by regulators.
In December 2012, hedge-fund manager William Ackman unveiled a
$1 billion short position against Herbalife in a withering,
hours-long presentation.
Ackman has accused the company of being an illegal pyramid
scheme numerous times, and even starred in a recent documentary
about Herbalife called "Betting on Zero" to explain his
position. But as it stands, he is losing out.
CNBC first reported about Herbalife's outlook earlier on Sunday.
http://cnb.cx/2qWkGu6
(This version of the story corrects second paragraph to say
adjusted profit forecast is per share)
(Reporting by Subrat Patnaik in Bengaluru; Editing by Sunil
Nair)
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