HLF

Company Continues to Expect Net Sales Growth for the Third Quarter and Full Year; Reaffirms Adjusted EBITDA¹ Outlook LOS ANGELES, August 31, 2026--(BUSINESS WIRE)--Herbalife Ltd. (NYSE: HLF), a premier health and wellness company, community and platform, today reaffirmed the third quarter and full-year 2026 financial guidance it provided on August 5, 2026 in connection with its second quarter 2026 earnings release. The Company continues to expect year-over-year net sales growth for both the third quarter and the full year 2026, on a reported and constant currency basis2, and reaffirms its adjusted EBITDA1 guidance for both periods. The Company’s guidance assumptions, including foreign exchange rates, are unchanged from those disclosed on August 5, 2026. "Our outlook for the remainder of the year remains firmly on track, and we are reaffirming the third quarter and full-year guidance we provided last month," said John DeSimone, Chief Financial Officer. "Our outlook is consistent with the expectations we shared, and we remain confident in our ability to deliver a fifth consecutive quarter of year-over-year net sales growth and continued momentum across the remainder of 2026." Outlook Third Quarter 2026 Guidance - Reaffirmed Full-Year 2026 Guidance – Reaffirmed Guidance Assumptions Net sales and adjusted EBITDA1 use the average daily exchange rates for the first two weeks of July 2026 to translate local currency projections Additional FY 2026 Expectations - Reaffirmed Capitalized SaaS implementation costs of $35 million to $55 million, which are not included in capital expenditures Depreciation and amortization, and amortization of SaaS implementation costs, of $140 million to $150 million Adjusted effective tax rate1 of approximately 35% About Herbalife Ltd. Herbalife (NYSE: HLF) is a premier health and wellness company, community and platform that has been changing people's lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best life. For more information, visit https://ir.herbalife.com. Forward-Looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate" or any other similar words. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: the potential impacts of current global economic conditions, including inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs, on us; our Members, customers, and supply chain; and the world economy; our ability to attract and retain Members; our relationship with, and our ability to influence the actions of, our Members; our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations; adverse publicity associated with our Company or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws; changing consumer preferences and demands and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance matters; the competitive nature of our business and industry; legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims; the Consent Order entered into with the Federal Trade Commission, or FTC, the effects thereof and any failure to comply therewith; risks associated with operating internationally and in China; our ability to execute our growth and other strategic initiatives (such as restructuring efforts, increased market penetration in existing markets, and personalized product and related technology initiatives); the effectiveness and acceptance of new technology-driven initiatives; any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, including the wars in Ukraine and the Middle East, cybersecurity incidents, pandemics, and/or other acts by third parties; our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distribute our products; our reliance on our information technology infrastructure, and our ability to successfully develop, deploy, and integrate artificial intelligence into our business; noncompliance by us or our Members with any privacy, artificial intelligence and data protection laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information; contractual limitations on our ability to expand or change our direct-selling business model; the sufficiency of our trademarks and other intellectual property; product concentration; our reliance upon, or the loss or departure of any member of, our senior management team; our ability to integrate and capitalize on acquisition transactions; restrictions imposed by covenants in the agreements governing our indebtedness; risks related to our convertible notes; changes in, and uncertainties relating to, the application of transfer pricing, income tax, customs duties, value added taxes, and other tax laws, treaties, and regulations, or their interpretation; our incorporation under the laws of the Cayman Islands; and share price volatility related to, among other things, speculative trading and certain traders shorting our common shares. Additional factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set forth in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on February 18, 2026, including under the headings "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations," and in our Consolidated Financial Statements and the related Notes included therein. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Supplemental Information Adjusted EBITDA The Company has included in this release adjusted EBITDA, a performance measure that the Securities and Exchange Commission defines as a "non-GAAP financial measure." Adjusted EBITDA is calculated as net income attributable to Herbalife excluding the impact of certain unusual or non-recurring items such as expenses related to restructuring initiatives, expenses related to the digital technology program, gains or losses from sale of property, gains or losses from extinguishment of debt and certain tax expenses and benefits. Management believes that such non-GAAP performance measure, when read in conjunction with the Company’s reported results, calculated in accordance with U.S. GAAP, can provide useful supplemental information for investors because it facilitates a period to period comparative assessment of the Company’s operating performance relative to its performance based on reported results under U.S. GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. The Company’s definition and calculation of adjusted EBITDA may not be comparable to similarly titled measure used by other companies because other companies may not calculate it in the same manner as the Company does and should not be viewed in isolation from, nor as an alternative to, net income attributable to Herbalife calculated in accordance with U.S. GAAP. Currency Fluctuation The Company’s international operations have provided and will continue to provide a significant portion of its total net sales. As a result, total net sales will continue to be affected by fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing how the Company’s underlying businesses performed excluding the effect of foreign currency fluctuations, in addition to comparing the percent change in net sales from one period to another in U.S. dollars, the Company also compares the percent change in net sales from one period to another period using "net sales in local currency." Net sales in local currency is not a measure presented in accordance with U.S. GAAP. Net sales in local currency removes from net sales in U.S. dollars the impact of changes in exchange rates between the U.S. dollar and the local currencies of the Company’s foreign subsidiaries, by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period. The Company believes presenting net sales in local currency is useful to investors because it allows a meaningful comparison of net sales of its foreign operations from period to period. However, net sales in local currency should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to net sales calculated and presented in accordance with U.S. GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260831893738/en/ Contacts Media Contact: Miguel Lopez-NajeraDirector, Global Corporate [email protected] Investor Contact: Samantha HolwayVice President, Head of Investor [email protected]

Herbalife stock has delivered a steep decline of about 76.5% over the past five years, yet on current checks it still screens as cheap on several valuation measures. Recent shorter term returns have stabilised somewhat, so the key issue for investors is whether the current price already reflects the pressure that long term holders have felt. Over the last five years, Herbalife shares are down about 76.5%, which leaves current investors weighing whether the market has already priced in the bulk of the damage. Future valuation can hinge on Herbalife's ability to sustain its direct selling model and cash generation, while any pressure on distributor engagement or regulatory scrutiny may limit how much investors are willing to pay for the stock. On Simply Wall St's broader checks, Herbalife screens as cheap in most tests, and the value score of 5 signals that the overall picture leans toward undervalued rather than fully priced. The stock's next move may depend on whether Herbalife's fundamentals and risk profile justify the discount that the valuation checks are currently suggesting. Compare Herbalife's deep value profile with hand picked 45 high quality undervalued stocks that also combine depressed long term returns with stronger fundamentals. The P/E ratio is a useful way to judge what the market is currently paying for Herbalife earnings. Herbalife shares trade on a P/E of about 7.9x, which is well below the Personal Products industry average of roughly 19.1x and also below the peer group average of about 13.2x. Simply Wall St's fair P/E ratio for Herbalife is 22.3x, based on its assessment of the company profile and risks. That is much higher than the current 7.9x level, which points to a wide gap between what the market pays today and what this framework suggests could be justified if conditions supported it. On this earnings multiple, Herbalife stock appears undervalued compared with both its industry and the fair P/E benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Herbalife's valuation puzzle leaves off by explaining which paths for growth, margins and earnings would need to occur for the stock to be worth materially more or less than it is today, based on views shared on the Community page. Each one links its number to a specific view on how Herbalife's growth, profitability and risks could evolve, giving you something concrete to refer back to as new information becomes available. The Herbalife community is split between a recovery story built on execution and technology and a more cautious view focused on structural pressures and regulation. Bull case: 27% undervalued Read the full Bull Case to see why Herbalife could be undervalued Bear case: 38% overvalued Read the full Bear Case to see why Herbalife could be overvalued Do you think there's more to the story for Herbalife? Head over to our Community to see what others are saying! Herbalife screens as undervalued on earnings multiples, yet that discount only helps if the business can maintain its direct selling model and cash generation under regulatory and competitive pressure. The high overall value checks point to room for a re rating if confidence in the business improves, but they also highlight how much hinges on execution from here. The crux for investors is whether the current discount reflects a value opportunity or a value trap if distributor engagement or regulatory outcomes break the wrong way. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HLF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Herbalife Ltd? Here are five stocks we like better. Herbalife delivered solid second-quarter growth: Net sales rose 5.4% year over year to $1.3 billion, while adjusted EBITDA reached $167 million. Growth was led by India, Asia Pacific, Latin America and a return to growth in North America, although China and EMEA declined. Personalized nutrition remains a strategic focus: The company launched Bioniq GO in Europe and the U.S., expanded testing of its Pro2col digital health platform and introduced new products including Helio and Activate Energy. Herbalife maintained its outlook while reducing debt: The company raised the midpoint of its constant-currency sales guidance, generated $147 million in first-half operating cash flow and is targeting net leverage below 2 times by year-end. CFO John DeSimone will retire at the end of 2026 and be succeeded by Scott Schaefer. 3 Small Caps That Have Big Upside Herbalife (NYSE:HLF) reported second-quarter net sales of $1.3 billion, up 5.4% from a year earlier and at the high end of its guidance range, as the nutrition company recorded its fourth consecutive quarter of year-over-year sales growth. On a constant-currency basis, net sales rose 5.8%, exceeding the company’s outlook. Adjusted EBITDA was $167 million, also near the top of Herbalife’s guided range of $150 million to $170 million. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Undervalued Midcaps Ready to Pop Chief Executive Officer Stephan Gratziani said the quarter reflected progress in turning the company’s investments in technology, product development and distributor capabilities into execution. He emphasized Herbalife’s strategy to expand its presence in personalized nutrition, combining digital tools, biomarker data, individualized products and distributor-led customer support. Three of Herbalife’s five regions posted year-over-year net sales growth on both a reported and constant-currency basis. Asia Pacific was a major contributor, with reported sales increasing 15% and constant-currency sales rising 23%. India posted reported sales growth of 33% and constant-currency growth of 47%, driven by a 45% increase in volume and favorable sales mix. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Defensive Stocks to Weather the Winter Storm Latin America recorded its fourth consecutive quarter of double-digit reported growth, with sales up 17%. Constant-currency sales in the region rose 8%, supported by pricing, sales mix and approximately 2% volume growth. Mexico’s reported sales rose 17%, while local-currency sales increased 5%. North America returned to growth, with sales increasing 20% year over year, though management described the increase as nominal. The result reflected higher pricing, partly offset by a 2% volume decline. Chief Financial Officer John DeSimone said distributor productivity has increased in North America, including at nutrition clubs. → No Hangover: Revisiting Microsoft One Week After Earnings Meanwhile, Europe, Middle East and Africa sales declined 3.5% on a reported basis and 5.6% in constant currency, reflecting a 12% volume decline. China, which Herbalife said represented less than 5% of worldwide sales, posted a 25% reported decline and a 29% constant-currency decline, primarily due to lower volume. Gratziani highlighted the June European launch and July U.S. launch of Bioniq GO, a personalized daily supplement introduced following Herbalife’s April acquisition of Bioniq. Customers complete a digital wellness assessment and are matched with one of 40 supplement formulas based on their wellness profile and goals. The product debuted across 11 markets in Europe and Africa, with further market launches planned in the second half of 2026. Herbalife also continues to expand beta testing of Pro2col, its personalized health operating system. The platform is intended to bring together AI-assisted recommendations, digital tools, wellness data and distributor support. The company plans to introduce smart-device integrations, expanded biomarker support and distributor-focused business capabilities in the second half of the year. In North America, Herbalife introduced a beta program for at-home blood testing and integration of results into the Pro2col platform. Gratziani said the company is evaluating the full customer experience, including ordering, self-administration, laboratory processing and delivery of results through the platform. The company also launched Helio, an all-in-one nutrition shake under its Life I/O healthy-lifespan brand, in July. Helio contains 30 grams of protein per serving, fibers, vitamins, minerals and other wellness ingredients. In addition, Herbalife introduced Activate Energy, an exogenous ketone product featuring D-BHB ketone technology, caffeine, B vitamins and electrolytes. Herbalife reported a second-quarter net loss attributable to the company of $26 million, or a diluted loss of $0.25 per share. The loss was primarily due to a nearly $95 million pretax loss on debt extinguishment associated with the company’s April refinancing, DeSimone said. On an adjusted basis, net income was approximately $53 million and adjusted diluted earnings per share were $0.51. The company’s adjusted effective tax rate was 43.2%, compared with 27.7% a year earlier, resulting in an approximately $0.14 unfavorable impact to adjusted diluted EPS. Herbalife expects its full-year adjusted tax rate to be about 35%. Operating cash flow for the first half of 2026 was $147 million, up 52% from the prior-year period. Herbalife ended the quarter with $370 million in cash, $135 million outstanding on its revolving credit facility, a total leverage ratio of 2.7 times and a net leverage ratio of 2.2 times. The company continues to target a net leverage ratio below two times by year-end and remains committed to repaying more than $600 million of debt by the end of 2028. Second-quarter net interest expense fell to $37 million from $54 million a year earlier, reflecting the benefit of the refinancing. For the third quarter, Herbalife expects reported net sales growth of 0.5% to 4.5%, including an estimated 100-basis-point currency headwind. Constant-currency sales are expected to increase 1.5% to 5.5%. The company forecast adjusted EBITDA of $160 million to $180 million on a reported basis and $165 million to $185 million in constant currency. For the full year, Herbalife narrowed its sales outlook and raised the midpoint of its constant-currency sales guidance. It now expects both reported and constant-currency net sales to increase 2.5% to 5.5%. Full-year adjusted EBITDA is projected at $670 million to $690 million on a reported basis and $690 million to $710 million on a constant-currency basis. The company reduced its expected 2026 capital expenditures range to $50 million to $70 million. DeSimone said the lower outlook reflected disciplined project prioritization and timing rather than cash constraints. Herbalife also announced that DeSimone will retire at the end of 2026. Scott Schaefer, currently senior vice president of finance and transformation, is scheduled to succeed him as CFO at the beginning of 2027. Gratziani said DeSimone and Schaefer will work together over the next five months to support the transition. Herbalife Nutrition Ltd. (NYSE: HLF) operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards. Founded in 1980 by Mark R. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Herbalife Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Herbalife Ltd. recently reported past second-quarter 2026 results showing higher sales of US$1,326.8 million but a swing from net income to a US$26.3 million loss, while also updating guidance and outlining a planned CFO transition. The combination of rising revenue, weaker profitability, and the handover from long-serving CFO John DeSimone to incoming finance leader Scott Schaefer raises fresh questions about Herbalife’s execution and long-term positioning. Next, we’ll examine how the profit swing alongside raised full-year sales guidance reshapes Herbalife’s existing investment narrative. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own Herbalife today, you have to believe its push toward a more digital, wellness-focused model can offset recent profit pressure and balance sheet concerns. The latest quarter’s higher sales but net loss, together with raised full-year sales guidance, keeps revenue momentum in focus, while the biggest near-term risk remains execution on profitability and cash generation. For now, the guidance tweak seems incremental rather than a game changer for the short-term thesis. The most relevant update here is Herbalife’s decision to lift full-year 2026 net sales guidance to 2.5% to 5.5% growth, up from 1.5% to 5.5%. That revision, following a quarter where revenue rose to US$1,326.8 million but earnings slipped into the red, puts a brighter spotlight on whether higher volumes can eventually support healthier margins and ease concerns around debt servicing and financial flexibility. But against this more positive sales outlook, investors should still be aware of the risk that profitability and leverage could... Read the full narrative on Herbalife (it's free!) Herbalife’s narrative projects $5.6 billion revenue and $317.3 million earnings by 2029. This requires 2.9% yearly revenue growth and about a $77.5 million earnings increase from $239.8 million today. Uncover how Herbalife's forecasts yield a $18.33 fair value, a 59% upside to its current price. Some of the lowest ranked analysts take a harsher view than this, assuming revenue only reaches about US$5.5 billion and earnings roughly US$296.7 million by 2029, so it is worth weighing their more cautious stance on competition and leverage against the recent guidance upgrade and asking how this new quarter might shift those expectations. Explore 5 other fair value estimates on Herbalife - why the stock might be worth over 5x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Herbalife research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision. Our free Herbalife research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Herbalife's overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. Find 50 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HLF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Herbalife Ltd (HLF) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -19.05%. A quarter ago, it was expected that this company would post earnings of $0.55 per share when it actually produced earnings of $0.64, delivering a surprise of +16.36%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Herbalife Ltd, which belongs to the Zacks Retail - Pharmacies and Drug Stores industry, posted revenues of $1.33 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.06%. This compares to year-ago revenues of $1.26 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Herbalife Ltd shares have lost about 0.7% since the beginning of the year versus the S&P 500's gain of 13%. While Herbalife Ltd has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Herbalife Ltd was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.70 on $1.3 billion in revenues for the coming quarter and $2.68 on $5.2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Pharmacies and Drug Stores is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Retail-Wholesale sector, Advance Auto Parts (AAP), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 20. This auto parts retailer is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +17.4%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. Advance Auto Parts' revenues are expected to be $2.03 billion, up 1.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Herbalife Ltd (HLF) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Herbalife Ltd (NYSE:HLF) delivered its fourth consecutive quarter of year-over-year net sales growth, with Q2 net sales up 5.4% reported and 5.8% on a constant currency basis, exceeding guidance. The company saw strong performance in key regions, with India posting a 47% constant currency net sales increase and Latin America delivering its fourth consecutive quarter of double-digit growth. Herbalife Ltd (NYSE:HLF) is expanding its personalized nutrition portfolio with new product launches like Bionic Go and Life IO, positioning itself in high-growth markets such as AI-powered nutrition and longevity. The company generated robust cash flow, with first-half operating cash flow up 52% year-over-year, and reduced net interest expense to $37 million from $54 million in the prior year. Herbalife Ltd (NYSE:HLF) successfully refinanced its debt in April, reducing leverage and lowering borrowing costs, while maintaining a strong free cash flow yield of over 23%. The company is investing in technology, including the Protocol platform and blood testing beta, to enhance distributor capabilities and customer engagement, which could drive future growth. Herbalife Ltd (NYSE:HLF) reported a GAAP net loss of $26 million in Q2, primarily due to a $95 million pre-tax loss on debt extinguishment from the April refinancing. The company faces ongoing foreign exchange headwinds, with FX negatively impacting net sales by 40 basis points in Q2 and expected to be a 100 basis point headwind in Q3. China, the company's smallest region, saw a significant decline, with reported net sales down 25% and constant currency net sales down 29% due to a 29% volume decrease. EMEA region experienced a decline in net sales, with reported sales down 3.5% and constant currency sales down 5.6%, driven by a 12% volume drop. Gross profit margin decreased by 30 basis points year-over-year, impacted by unfavorable country mix, higher other costs, and increased inventory reserves. The adjusted effective tax rate rose to 43.2% in Q2 from 27.7% in the prior year, negatively impacting adjusted diluted EPS by approximately $0.14. Warning! GuruFocus has detected 3 Warning Signs with HLF. Is HLF fairly valued? Test your thesis with our free DCF calculator. Q: How do you ensure stronger distributor retention in Asia Pacific, particularly in India, during and after this rapid growth phase? A: Stefan Graziani (CEO) explained that the growth is driven by strong business models and customer support systems put in place by distributor leadership. A price adjustment made products more accessible, and distributors have effectively managed the influx of customers through their systems and clubs. John De Simone (CFO) added that India has had 18 straight years of growth, demonstrating their ability to build discipline underneath growth, which gives confidence in managing this current expansion. Q: Are individual distributors performing better in North America, given that net sales per distributor is up year-over-year and active sales leaders grew from Q1 to Q2? A: Stefan Graziani (CEO) confirmed that the takeaway is accurate. He noted increased productivity among distributors in North America, with an even greater change in productivity for new distributors compared to traditional run rates. He highlighted that nutrition club productivity is up, which is an important indicator of the health of the business in the region. Q: What have you seen from distributors since the launch of the new Life IO products, and how have they reached a more sophisticated consumer? A: Stefan Graziani (CEO) deferred this question, stating that the products were launched in July (Q3) and it was too early to provide figures. He acknowledged there was lots of excitement at the launch event but suggested waiting until the next quarterly call to discuss performance data. Q: What is driving the narrowing and modest reduction of the CapEx range for the year? A: John De Simone (CFO) explained that the company has a disciplined approach to reviewing capital expenditure projects, requiring ROI analysis before approval. The underspend is due to reprioritizing and delaying some projects, not financial constraints. He emphasized that the company generates plenty of cash and is investing in projects that add value. Q: With protein becoming ubiquitous in the grocery aisle, does this competitive environment help or hurt Herbalife's distributors? A: Stefan Graziani (CEO) stated that it is a good thing, as it validates what Herbalife has been doing for over 45 years. He noted that the company is looking closely at its protein offerings to grab more market share and extend its lead. He believes increased consumer awareness is a positive and expands the overall market. Q: Can you talk about expected cost or inflation pressures for next year, particularly regarding input costs like whey? A: John De Simone (CFO) acknowledged seeing some pressure on input costs, with whey being one of the bigger increases, though it is not the dominant protein type sold. He also mentioned pressure from packaging and freight due to oil prices. He stated the impact is manageable and expects to recover these costs through normal price increase structures next year. Q: With a new CFO coming in, are there any potential changes to your leverage target or thoughts on capital allocation? A: John De Simone (CFO) confirmed there are no changes at this time. He reiterated that the priority remains reducing debt, and he made this clear on the call so investors know the policy hasn't changed. He noted that capital allocation is a board-level decision, and Scott Shaffer, the incoming CFO, will not be a driver of change unless circumstances change. Q: Does the recent M&A news of P&G buying a premium supplement company (Thorne) change your thinking on how to go to market or the competitive environment? A: Stefan Graziani (CEO) viewed the deal as validation of the company's strategy and the capabilities they are bringing to market. He noted it confirms the direction of the personalized nutrition market and that the Life IO brand is designed to target that audience. He sees it as a natural progression for the company. Q: What has the reaction been among distributors to the beta test of the blood biomarker diagnostics introduced at the extravaganza? A: Stefan Graziani (CEO) described the beta launch as an opportunity to enter the blood-based testing and biomarker segment of personalized nutrition. He explained they are validating the end-to-end experience, from ordering and self-administering the test to lab processing and delivering results through the Protocol platform. He emphasized this is the beginning of a process and part of the "what to measure" element of their strategy. Q: What is next in the personalized nutrition space following the rollout of Bionic Go in Europe and North America? A: Stefan Graziani (CEO) stated that additional market launches are planned for the end of the year. He confirmed that Bionic Go is the first product in the line for this category and that there will be more to come, though the company is not ready to discuss specifics at this time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Advances Personalized Nutrition with Bioniq launch; CFO John DeSimone to Retire at Year-End; Scott Schaefer Named Successor LOS ANGELES, August 05, 2026--(BUSINESS WIRE)--Herbalife Ltd. (NYSE: HLF) today reported financial results for the second quarter ended June 30, 2026: "This quarter marks an important milestone in the execution of our personalized nutrition strategy with the launch of Bioniq in Europe and the United States. We are bringing our vision to life and expanding the value we create for customers." - Stephan Gratziani, CEO Highlights Second Quarter 2026 Net sales of $1.3 billion, up 5.4% vs. Q2’25, and at the top of guidance range Net loss attributable to Herbalife of $(26.3) million includes loss on extinguishment of debt; adjusted net income1 of $53.3 million Adjusted EBITDA1 of $166.6 million, toward the upper end of guidance Diluted loss per share of $(0.25); adjusted diluted EPS1 of $0.51 Year-to-date net cash provided by operating activities of $146.7 million; capital expenditures of $22.2 million Recent Developments Launched next generation of personalized product with Bioniq GO matching customers to one of forty formulas in eleven EMEA markets in June and North America in July, as well as two new products, Helio and Activate Energy, under its healthy lifespan brand, Life I/O Delivered a significant update to the Pro2colTM platform as part of an extended beta program at the North America Extravaganza, featuring a new user experience, enhanced features, and blood-test diagnostic integration Unveiled beta version of at-home blood test diagnostic to select distributors in North America in July Outlook Third quarter 2026 guidance provided Full-year 2026 guidance revised: range tightened for net sales; narrowed adjusted EBITDA1 guidance range to $670 million to $690 million from $675 million to $705 million, primarily reflecting FX headwinds, as constant currency guidance was raised. Management Commentary Herbalife reported second quarter 2026 net sales of $1.3 billion, up 5.4% year-over-year, including 40 basis points of foreign currency ("FX") headwinds. On a constant currency basis2, net sales increased 5.8% year-over-year for the quarter. This was the Company’s fourth consecutive quarter of year-over-year net sales growth on both a reported and constant currency basis. Gross profit margin was 77.7% in the second quarter, compared to 78.0% in the prior year period. On a year-over-year and approximate basis, the change primarily reflects 47 basis points of sales mix pressure, 22 basis points of higher other costs, 20 basis points from higher inventory write-downs and 9 basis points from cost changes related to self-manufacturing and sourcing. These impacts were partially offset by 64 basis points of pricing benefits. For the quarter, net loss attributable to Herbalife was $(26.3) million, with net loss margin of 2.0%, and adjusted net income1 of $53.3 million. Adjusted EBITDA1 of $166.6 million includes approximately $7.6 million of FX headwinds year-over-year, with adjusted EBITDA1 margin of 12.6%, down 120 basis points versus the second quarter of 2025. Diluted loss per share was $(0.25), with adjusted diluted EPS1 of $0.51, which includes a $0.04 year-over-year FX headwind. Net cash provided by operating activities was $32.9 million and $146.7 million for the three and six months ended June 30, 2026, respectively. Capital expenditures were $11.3 million and $22.2 million for the three and six months ended June 30, 2026, respectively, and capitalized SaaS implementation costs were approximately $8 million and $18 million, respectively. The Company expects to incur total capitalized SaaS implementation costs of approximately $35 million to $55 million for the full year of 2026, which are not included in capital expenditures. "Our net sales and EBITDA results for the second quarter were at the high end of previously issued guidance," said John DeSimone, Chief Financial Officer. "While the recent strengthening of the U.S. dollar has resulted in additional foreign exchange headwinds affecting our reported outlook for the back half of the year, our constant currency outlook remains consistent with the expectations we shared last quarter." Following the first 2026 Extravaganza events in India in April, the Company hosted additional events in Uzbekistan, China, Panama, Singapore, Poland, and the United States. To date, the 2026 events have attracted over 110,000 attendees, reflecting strong distributor engagement and continued demand for in-person training, recognition and business development opportunities. In conjunction with the EMEA and U.S. Extravaganzas, the Company launched Bioniq GO, entering its next generation of personalized products, matching customers to one of forty formulas, across eleven European markets and the U.S., with additional markets to follow later in 2026. In addition, the Company is now offering distributors, customers and preferred members in the newly-launched European markets the option to subscribe to automatic monthly deliveries of Bioniq GO. Our global Fuel Like Ronaldo campaign brought our personalized nutrition philosophy to life by highlighting the daily habits behind Cristiano Ronaldo’s performance. The global campaign reached consumers worldwide across social media, digital, print and broadcast media, as well as in-person fan fest activations around a major sporting event, creating new opportunities to engage consumers and support our distributors around the world. Recent Developments At the North America Extravaganza in July, the Company delivered the next release of its Pro2col™ platform as part of its extended beta program, introducing a new user experience, enhanced features, and integration with blood test diagnostics, rooted in direct distributor feedback received since initiation of the beta program. Alongside the platform updates, the Company began an early beta of at-home blood biomarker diagnostics with a select group of distributors. In July, the Company also launched two new products under Life I/O, its recently launched healthy lifespan brand. Helio is a daily, all-in-one super shake formulated with foundational and trending ingredients like protein, fiber, methylated B vitamins, creatine, and superfood, adaptogen, and polyphenol blends for everyday health and wellness.* Stemming from its acquisition of Pruvit, Activate Energy marks the Company’s channel-exclusive entry into the exogenous ketones market, containing D-isomer BHB ketones. CFO Transition As announced in a separate press release today, Scott Schaefer will succeed John DeSimone as CFO, as part of a planned transition, effective January 1, 2027. Mr. DeSimone will retire, effective December 31, 2026. "We delivered a fourth consecutive quarter of year-over-year net sales growth, and we continue to expect net sales growth for the remainder of the year," said Stephan Gratziani. "This momentum reflects the resilience of Herbalife and has us poised to successfully carry out our long-term growth strategy. John DeSimone played an impactful role in laying this foundation, and I am grateful to him for his leadership and partnership. I am confident Scott Schaefer’s financial expertise and strategic perspective will help propel us in our next chapter." * These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease. Second Quarter 2026 Key Metrics Regional Net Sales and FX Impact Outlook Third Quarter 2026 Guidance Full-Year 2026 Guidance – Revised Guidance Assumptions Net sales and adjusted EBITDA1 use the average daily exchange rates for the first two weeks of July 2026 to translate local currency projections Additional FY 2026 Expectations – Revised Capitalized SaaS implementation costs of $35 million to $55 million, which are not included in capital expenditures Depreciation and amortization, and amortization of SaaS implementation costs, of $140 million to $150 million Adjusted effective tax rate1 of approximately 35% Earnings Webcast and Conference Call Herbalife’s senior management team will host an audio webcast and conference call to discuss its second quarter 2026 financial results on Wednesday, August 5, 2026, at 5:30 p.m. ET (2:30 p.m. PT). The audio webcast will be available at the following link: https://edge.media-server.com/mmc/p/6vz6bf9d Participants joining via the conference call may obtain the dial-in information and personal PIN to access the call by registering at the following link: https://register-conf.media-server.com/register/BI6c9d643b8ab14a798e591c1cf18bbc2e Senior management also plans to reference slides during the webcast and call, which will be available under the Investor Relations section of Herbalife’s website at https://ir.herbalife.com, where financial and other information is posted from time to time. The webcast will also be available at the same website, along with a replay of the webcast following the completion of the event and for three months thereafter. About Herbalife Ltd. Herbalife (NYSE: HLF) is a premier health and wellness company, community and platform that has been changing people's lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best life. For more information, visit https://ir.herbalife.com. Forward-Looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "continue," "believe," "expect," "anticipate" or any other similar words. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: the potential impacts of current global economic conditions, including inflation, unfavorable foreign exchange rate fluctuations, and tariffs or retaliatory tariffs, on us; our Members, customers, and supply chain; and the world economy; our ability to attract and retain Members; our relationship with, and our ability to influence the actions of, our Members; our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations; adverse publicity associated with our Company or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws; changing consumer preferences and demands and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance matters; the competitive nature of our business and industry; legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims; the Consent Order entered into with the Federal Trade Commission, or FTC, the effects thereof and any failure to comply therewith; risks associated with operating internationally and in China; our ability to execute our growth and other strategic initiatives (such as restructuring efforts, increased market penetration in existing markets, and personalized product and related technology initiatives); the effectiveness and acceptance of new technology-driven initiatives; any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, including the wars in Ukraine and the Middle East, cybersecurity incidents, pandemics, and/or other acts by third parties; our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distribute our products; our reliance on our information technology infrastructure, and our ability to successfully develop, deploy, and integrate artificial intelligence into our business; noncompliance by us or our Members with any privacy, artificial intelligence and data protection laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information; contractual limitations on our ability to expand or change our direct-selling business model; the sufficiency of our trademarks and other intellectual property; product concentration; our reliance upon, or the loss or departure of any member of, our senior management team; our ability to integrate and capitalize on acquisition transactions; restrictions imposed by covenants in the agreements governing our indebtedness; risks related to our convertible notes; changes in, and uncertainties relating to, the application of transfer pricing, income tax, customs duties, value added taxes, and other tax laws, treaties, and regulations, or their interpretation; our incorporation under the laws of the Cayman Islands; and share price volatility related to, among other things, speculative trading and certain traders shorting our common shares. Additional factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set forth in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on February 18, 2026, including under the headings "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations," and in our Consolidated Financial Statements and the related Notes included therein. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Results of Operations Supplemental Information SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Credit Agreement EBITDA and Net Debt In addition to its reported results calculated in accordance with U.S. GAAP, the Company has included in this release adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA, performance measures that the Securities and Exchange Commission defines as "non-GAAP financial measures." Adjusted net income, adjusted diluted EPS, adjusted EBITDA and credit agreement EBITDA are calculated as net income attributable to Herbalife excluding the impact of certain unusual or non-recurring items such as expenses related to restructuring initiatives, expenses related to the digital technology program, gains or losses from sale of property, gains or losses from extinguishment of debt and certain tax expenses and benefits, as further detailed in the reconciliations below. In addition, during the fourth quarter of 2024, the Company recognized $147.3 million of non-cash net deferred income tax benefits related to changes the Company initiated to its corporate entity structure, including intra-entity transfers of intellectual property to one of its European subsidiaries, which was excluded from adjusted net income and adjusted diluted EPS. A portion of these non-cash net deferred income tax benefits will reduce cash taxes paid and result in net deferred tax expense recognized in future periods. Beginning in the first quarter of 2025 and in future periods, the related net deferred tax effects will be excluded from adjusted net income and adjusted diluted EPS. Adjusted EBITDA margin represents adjusted EBITDA divided by net sales. Credit agreement EBITDA represents EBITDA adjusted for items permitted under the Company’s senior secured credit facilities. Management believes that such non-GAAP performance measures, when read in conjunction with the Company’s reported results, calculated in accordance with U.S. GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the Company’s operating performance relative to its performance based on reported results under U.S. GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company’s operations and underlying operational performance. Net debt is calculated as the aggregate outstanding principal amount of total debt less cash and cash equivalents. Management believes net debt is useful, when read in conjunction with the Company’s reported balance sheet, because it provides investors with information regarding the Company’s leverage profile, including its debt obligations that could not be repaid with cash and cash equivalents on hand. This measure is not meant, however, to imply that the Company intends to use all available cash to pay down debt. The Company’s definitions and calculations as set forth in the tables below of adjusted net income, adjusted diluted EPS, adjusted EBITDA, credit agreement EBITDA and net debt may not be comparable to similarly titled measures used by other companies because other companies may not calculate them in the same manner as the Company does and should not be viewed in isolation from, nor as alternatives to, net income attributable to Herbalife, diluted EPS or total debt, as applicable, calculated in accordance with U.S. GAAP. The Company does not provide a reconciliation of forward-looking adjusted EBITDA or constant currency adjusted EBITDA guidance to net income attributable to Herbalife, and adjusted effective tax rate to GAAP tax rate, the comparable U.S. GAAP measures, because, due to the unpredictable or unknown nature of certain significant items, such as income tax expenses or benefits, loss contingencies, and any gains or losses in connection with refinancing transactions, the Company cannot reconcile these non-GAAP projections without unreasonable efforts. The Company expects the variability of these items, which are necessary for a presentation of the reconciliation, could have a significant impact on the Company’s reported U.S. GAAP financial results. Currency Fluctuation The Company’s international operations have provided and will continue to provide a significant portion of its total net sales. As a result, total net sales will continue to be affected by fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing how the Company’s underlying businesses performed excluding the effect of foreign currency fluctuations, in addition to comparing the percent change in net sales from one period to another in U.S. dollars, the Company also compares the percent change in net sales from one period to another period using "net sales in local currency." Net sales in local currency is not a measure presented in accordance with U.S. GAAP. Net sales in local currency removes from net sales in U.S. dollars the impact of changes in exchange rates between the U.S. dollar and the local currencies of the Company’s foreign subsidiaries, by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period. The Company believes presenting net sales in local currency is useful to investors because it allows a meaningful comparison of net sales of its foreign operations from period to period. In addition, the Company presents adjusted EBITDA on a constant currency basis, which is a non-GAAP financial measure, and is calculated by translating the current period adjusted EBITDA into U.S. dollars using the same foreign currency exchange rates that were used to translate such measure for the previous comparable period and adjusting for other FX related impacts. However, net sales in local currency and adjusted EBITDA on a constant currency basis should not be considered in isolation or as an alternative to net sales and adjusted EBITDA, respectively, in U.S. dollar measures that reflect current period exchange rates, or to net sales and net income attributable to Herbalife calculated and presented in accordance with U.S. GAAP. The following is a reconciliation of net (loss) income attributable to Herbalife to adjusted net income: The following is a reconciliation of diluted earnings per share to adjusted diluted earnings per share: The following are reconciliations of net (loss) income attributable to Herbalife to EBITDA, adjusted EBITDA and Credit Agreement EBITDA and Credit Agreement total leverage ratio for the respective periods: SCHEDULE B: RECLASSIFICATIONS Reclassifications Effective in the fourth quarter of 2025, the Company retrospectively separated selling expenses from selling, general, and administrative expenses in the consolidated statements of income and combined those selling expenses with royalty overrides in the consolidated statements of income to simplify its financial statement presentation. Specifically, the Company’s Member compensation payments recognized as operating expenses, previously reported as royalty overrides, have been combined with the service fees to China’s independent service providers which were previously reported as selling expense within selling, general, and administrative expenses, and the two categories of expense are now collectively being presented in selling expenses within the condensed consolidated statements of income (loss). As a result, $39.4 million and $71.0 million related to service fees to China independent service providers previously presented as selling, general, and administrative expenses and all amounts previously presented as royalty overrides were collectively reclassified to selling expenses within the condensed consolidated statements of income (loss) for the three and six months ended June 30, 2025. As a result of the above, the Member compensation previously reported as royalty overrides within the operating activities in the condensed consolidated statements of cash flows is now presented as Member compensation liabilities. In addition, $0.4 million of cash outflows related to service fees to China independent service providers were reclassified from other current liabilities to Member compensation liabilities within the Company’s cash flows from operating activities in the condensed consolidated statements of cash flows for the six months ended June 30, 2025. These reclassifications did not impact the amounts of the prior period total assets, total liabilities, operating income, net (loss) income attributable to Herbalife, and net cash provided by (used in) operating activities, investing activities and financing activities, and did not impact the Company’s condensed consolidated statements of comprehensive income and condensed consolidated statements of changes in shareholders’ deficit. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805819129/en/ Contacts Media Contact:Miguel Lopez-NajeraDirector, Global Corporate [email protected] Investor Contact:Samantha HolwayVice President, Head of Investor [email protected]

Let’s dig into the relative performance of Herbalife (NYSE:HLF) and its peers as we unravel the now-completed Q1 personal care earnings season. While personal care products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products. The 9 personal care stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 2% below. While some personal care stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results. With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals. Herbalife reported revenues of $1.32 billion, up 7.8% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ revenue estimates but EBITDA guidance for next quarter missing analysts’ expectations. Unsurprisingly, the stock is down 23.7% since reporting and currently trades at $12.55. Is now the time to buy Herbalife? Access our full analysis of the earnings results here, it’s free. Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products. USANA reported revenues of $250.2 million, flat year on year, outperforming analysts’ expectations by 3.8%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA and EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.1% since reporting. It currently trades at $18.86. Is now the time to buy USANA? Access our full analysis of the earnings results here, it’s free. With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide. Inter Parfums reported revenues of $344.9 million, up 1.8% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates. Inter Parfums delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 5.2% since the results and currently trades at $96.45. Read our full analysis of Inter Parfums’s results here. Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ:NATR) manufactures and sells nutritional and personal care products. Nature's Sunshine reported revenues of $122.9 million, up 8.5% year on year. This print beat analysts’ expectations by 0.6%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS and EBITDA estimates. The stock is down 11.2% since reporting and currently trades at $21.80. Read our full, actionable report on Nature's Sunshine here, it’s free. Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories. Edgewell Personal Care reported revenues of $519.5 million, flat year on year. This result met analysts’ expectations. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA and organic revenue estimates. The stock is down 23.6% since reporting and currently trades at $17.44. Read our full, actionable report on Edgewell Personal Care here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Herbalife’s first quarter saw revenue and non-GAAP earnings per share come in above Wall Street expectations, but the market responded negatively due to concerns highlighted by management. CEO Stephan Paulo Gratziani cited India’s rapid sales gains, driven by a favorable GST tax change, as a key driver. However, he also noted mixed regional trends, with softness in EMEA and North America, and ongoing challenges in China. CFO John G. DeSimone described the quarter as a “strong start,” but acknowledged persistent input cost inflation and unfavorable sales mix impacting margins. Is now the time to buy HLF? Find out in our full research report (it’s free). Revenue: $1.32 billion vs analyst estimates of $1.30 billion (7.8% year-on-year growth, 1.4% beat) Adjusted EPS: $0.64 vs analyst estimates of $0.61 (5.4% beat) Adjusted EBITDA: $164.9 million vs analyst estimates of $167.6 million (12.5% margin, 1.6% miss) Revenue Guidance for Q2 CY2026 is $1.30 billion at the midpoint, below analyst estimates of $1.31 billion EBITDA guidance for the full year is $690 million at the midpoint, in line with analyst expectations Operating Margin: 10.5%, in line with the same quarter last year Market Capitalization: $1.41 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Chasen Louis Bender (Citi) asked about the impact of the Protocol beta on distributor behavior. CEO Stephan Paulo Gratziani said feedback is driving feature development and that revenue from the platform is not yet included in forecasts. Karru Martinson (Jefferies) questioned how higher oil prices are affecting North American consumers. CFO John G. DeSimone replied that increased costs are being absorbed by the company, with no direct price increases for customers. Nicholas Sherwood (Maxim Group) asked about early results of the packaging redesign. Gratziani responded that while feedback and research are positive, it is too early to draw conclusions from real-world results. John Baumgartner (Mizuho Securities) inquired about segmentation and tiering for personalized nutrition. Gratziani explained that the Vionic and Link acquisitions enable Herbalife to reach different price points and demographics, broadening the addressable market. Douglas Matthai Lane (Water Tower Research) asked about the exclusivity and branding of Vionic products. Gratziani confirmed they will be available only through Herbalife distributors, with specific branding details to be revealed at an upcoming company event. Looking forward, the StockStory team will be monitoring (1) the scale and customer adoption of Vionic’s personalized supplements in Europe and North America, (2) the effectiveness of the Protocol platform in deepening distributor engagement and driving incremental sales, and (3) whether growth in India remains robust as the GST tailwind subsides. Progress with subscription models and the pace of margin recovery in EMEA will also be critical signposts. Herbalife currently trades at $13.63, down from $16.44 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Herbalife Ltd.'s (NYSE:HLF) earnings announcement last week didn't impress shareholders. Despite the soft profit numbers, our analysis has optimistic about the overall quality of the income statement. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to March 2026, Herbalife had an accrual ratio of -0.12. Therefore, its statutory earnings were quite a lot less than its free cashflow. To wit, it produced free cash flow of US$374m during the period, dwarfing its reported profit of US$239.8m. Herbalife shareholders are no doubt pleased that free cash flow improved over the last twelve months. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, Herbalife has perfectly satisfactory free cash flow relative to profit. Based on this observation, we consider it likely that Herbalife's statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Herbalife. Today we've zoomed in on a single data point to better understand the nature of Herbalife's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.