) rose 1.91% on May 19, after the company announced the expansion
of its newest skin care line Herbalife SKIN in the Asia Pacific
region on May 16. We note that Herbalife SKIN formed a part of this
global nutrition company in Feb 2014. The Herbalife SKIN range will
hit the Asia Pacific markets by mid-June 2014, and will be rolled
out fully by 2015.
The Herbalife SKIN line comprises 10 new products, which include
a Soothing Aloe Cleanser, Polishing Citrus Cleanser, Energizing
Herbal Toner, Line Minimizing Serum, Firming Eye Gel, Hydrating Eye
Cream, Daily Glow Moisturizer, Replenishing Night Cream, Instant
Reveal Berry Scrub and Purifying Mint Clay Mask.
All its products are clinically proven and dermatologist tested.
Herbalife SKIN is unisex and suitable for all skin types, with the
exception of two cleansers: Soothing Aloe Cleanser for normal to
dry skin, and Polishing Citrus Cleanser for normal to oily skin.
Herbalife SKIN products contain an optimum blend of Vitamin B3 and
antioxidant Vitamins C and E, and Aloe Vera which leads to a
radiant skin and diminishes fine lines and wrinkles.
Herbalife SKIN also offers three skin care programs, Basic,
Advanced or Ultimate, which combine products from the range to
address specific skin care concerns and deliver tailored
Herbalife has been changing the life of many people around the
world with its weight-management, nutrition and personal care
products. Its products are sold in more than 90 countries to and
through a network of independent distributors.
This global nutrition company recently reported impressive first
quarter 2014 results and raised its guidance for 2014. Despite
impressive earnings, Herbalife's business practices have been
criticized since Dec 2012, when activist investor Bill Ackman,
hedge fund manager of Pershing Square, first accused the company of
making money by recruiting new sales personnel and not from its
sales. Ackman also unveiled a $1 billion short position in the
company's shares in 2012.
Currently, Herbalife's operations are being probed by the
Federal Bureau of Investigation, the Department of Justice, the
U.S. Securities and Exchange Commission, FTC, and two attorney
generals. Additionally, as per a report by New York Post in Jan
2014, the Canadian Competition Bureau is also looking into the
operations of the company.
Herbalife is not the only company, which employs sales
representatives to sell its products. Other multi-level marketing
Nu Skin Enterprises Inc.
USANA Health Sciences Inc.
Avon Products Inc.
) also follow the same distribution model.
Herbalife holds a Zacks Rank #3 (Hold).
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