In this article, we take a look at five of the leading companies’ second quarter figures: Herbalife, Natura &Co, Nu Skin, Tupperware and USANA.

HERBALIFE

Herbalife reported $1.6 billion net sales in the second quarter, up 15% versus Q2 of 2020. This year’s Q2 was also Herbalife’s fourth straight quarter of year-over-year double-digit sales growth.

Five of six regions came up with net sales growth in the quarter with four regions exceeding 20% growth: Asia-Pacific 38%, South & Central America 23%, Mexico 23%, and EMEA 22%. North America reported 7% sales growth and China 17% decilne.

Management told the investors they were disappointed with China’s performance. China represents relatively a small share in Herbalife’s global business (approx. 11%) but company announced they were already taking a number of actions to reverse the situation in this market.

“We delivered double-digit net sales growth for the fourth straight quarter. All three of our core product categories grew double-digits, which includes the Energy, Sports and Fitness category, which increased 45% compared to the prior year,” said John Agwunobi, Chairman and CEO of Herbalife.

Herbalife management declared its sales increase forecast for end-2021 as 8.5 to 12.5%. As Herbalife’s year-over-year first half growth performance currently sits at 17%, this forecast indicates a low growth expectation from the second half.

For more on Herbalife’s second quarter performance, please click here.

NATURA &CO

Natura &Co announced its revenue had increased by 36% in the second quarter of 2021.

Natura &Co Latam reported 39% sales growth, Avon International 34%, The Body Shop 24%, and Aesop 47%. At the country level, Natura business in Brazil grew by 25%, Avon’s by 26% in this country. Additionally, management noted Avon’s performances in Philippines, South Africa, Romania and Italy.

Natura &Co Latam accounted for 58% of the group revenue. Avon International’s share was 23%, The Body Shop’s 13%, and Aesop’s 6%.

With these results, Natura &Co’s first six-month consolidated revenue is 31% higher than what it was in 2020.

Roberto Marques, Executive Chairman and Group CEO, commented, “Natura &Co turned in another strong performance in the second quarter despite a persistently challenging environment, demonstrating again the relevance of our multichannel model, the powerful appeal of our brands and products and unparalleled direct-to-customer reach. All of our brands and businesses posted double-digit growth and we once again outperformed the global CFT market.”

For more on Natura’s second quarter performance, please click here.

NU SKIN

Nu Skin’s second quarter revenue was $704 million, indicating an increase of 15% versus 2020.

Six of its seven regions posted positive growth: EMEA 64%, Americas/Pacific 19%,  South Korea 15%, Southeast Asia 6%, Mainland China 5% and Hong Kong/Taiwan 4%. Japan’s revenue was the same as last year.

With this result, Nu Skin’s first six-month sales performance is 21% higher than 2020.

“Our performance was led by continued growth in our beauty device systems and further adoption of social commerce. In addition, we significantly improved profitability during the quarter, which led to strong earnings per share growth,” said CEO Ritch Wood. Ritch Wood will be transferring the CEO role to current President Ryan Napierski on September 1st.

Nu Skin’s 2021 revenue expectation is $2.81 to $2.87 billion. This is an increase of 9 to 11% compared to 2020.

Looking ahead into 2022, management said they will expand their beauty device system leadership position by introducing next-generation connected devices. This will further enhance the company’s ability to provide consumers with more personalized product experiences to meet their needs, as explained.

For more on Nu Skin’s second quarter performance, please click here.

TUPPERWARE

Tupperware closed the second quarter with $465 million sales, up 17% from last year. This was Tupperware’s fourth consecutive quarter of revenue growth. Company’s average active sales force also increased by 24%.

Second quarter 2021 net sales for the segments were:

Asia Pacific: $124.6 million, down 7%
Europe: $114.4 million, up 26%
North America : $155.8 million, up 26%
South America : $69.9 million, up 45%

From a geographic perspective, Tupperware’s growth was driven by its largest markets. U.S., Canada, Mexico and Brazil contributed more than 80% of the revenue increase, company told.

Miguel Fernandez, President and CEO of Tupperware said, “The double digit sales growth reflects our initial investments and numerous initiatives to create long-term sustainable growth in our core direct selling business. We are increasing our investments in talent across operations, digital, finance and market leadership to prepare for future business expansion into new channels.”

Following expanding into Honduras and Panama, management is hopeful to open U.K. before the end of this year. Tupperware intends first, to retail or direct-to-consumer through TV channels in the U.K. Direct selling will be the last channel in this market.

For more on Tupperware’s second quarter performance, please click here.

USANA

USANA reported an impressive 30% revenue increase in the second quarter of this year versus Q2 of 2020. Company’s first half 2021 sales growth is also up 23%.

USANA’s all four regions came up with double-digit quarterly sales figures: North Asia 45%, Greater China 33%, Southeast Asia Pacific 28%, and Americas & Europe 19%.

CEO Kevin Guest said, “Strong consumer demand for our high-quality health products, coupled with the execution of our previously announced short-term sales program, contributed to our record net sales and customer numbers for the second quarter.”

Following the seacond quarter, USANA management reiterated its net sales forecast for the full year of 2021 as $1.24 – $1.28 billion.

During the investors’ call, the dichotomy between having a very strong second quarter but no change in the full year outlook was asked about. This would mean a serious  slowdown in the rest of 2021. Management said the sharp increase in Q2 was mainly due to the sales program that was short-term in nature.

For more on USANA’s second quarter performance, please click here.

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Hakki Ozmorali is the Founder of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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Let’s have a look at five of the major direct sellers’ first quarter achievements: Herbalife, Natura &Co, Nu Skin, Tupperware and USANA.

HERBALIFE

Herbalife reported 19% revenue growth in the first quarter of 2021 versus last year’s: US$1.501 billion vs. US$1.262 billion. The management announced this quarterly sales figure as “company record”, with the month of March representing the single month sales record. The previous quarterly sales record was the figure achieved in the last quarter of 2020.

Five of Herbalife’s six geographic regions reported year-over-year net sales growth in the quarter. EMEA’s sales increase was 37%, North America’s 30%, Asia & Pacific’s 22%, South & Central America’s 5%. Within the EMEA region, UK (+157%) and Turkey (+70%) ended Q1 with exceptionally good results. The only region that posted negative growth was China (-11%). Commenting on China, management said it is a relatively small component of  their business which is uncommon with a lot of Herbalife’s competitors. So, the current situation is not hurting the company much but this also means a huge opportunity, they added.

Based on these recent developments, Herbalife management increased its sales growth expectation for 2021 to the range of 9-15%, up from its prior range of 6-14%. Herbalife’s 2020 sales increase was 14%.

CEO John Agwunobi said, “Due to the ongoing performance of our materially enlarged sales force and the increased awareness and consumer demand for our rapidly expanding product portfolio, we have meaningfully raised and narrowed our full year 2021 guidance. We believe in the long-term growth opportunity of our business.”

As reported, the company’s sports nutrition line continued to drive growth, with sales of energy, sports, and fitness category increasing about 34% during the first quarter. Furthermore, Herbalife’s targeted nutrition category, which includes health and wellness products, grew by 21% while the core weight management product category grew by 16% in the first quarter.

For more on Herbalife’s first quarter performance, please click here.

NATURA &CO

Natura increased its sales by 26% in the first quarter. Consolidated net revenue in Q1 stood at R$9.5 billion (approx. US$ 1.8 billion).

The four business units’ individual growth performances were as follows: Natura &Co Latam 25%, Avon International 11%, The Body Shop 48% and Aesop 72%.

Management said Avon’s growth was driven by the UK market in Europe and by Philippines in Asia. Avon UK’s market share increased for the fourth consecutive quarter, making it the third brand in the beauty market, up from 10^th a year earlier.

The two key growth drivers in The Body Shop’s case were direct selling business (+251%) and e-commerce (+119%). Geographically, management highlighted the performances in the UK and North America.

Roberto Marques, Executive Chairman and Group CEO, commented, “Natura &Co turned in another strong performance in the first quarter despite a persistently challenging environment, demonstrating again the strength of its direct-to-consumer, multichannel model. All of our brands and businesses posted growth in Brazilian Reais in the quarter, and our continued pivot to digital and online sales allowed us to once again outperform the global CFT market.”

In the first quarter, Natura &Co Latam generated 55% of Natura’s group revenue. Avon International’s share was 25%, The Body Shop’s 14%, and Aesop’s 6%.

For more on Natura’s first quarter performance, please click here.

NU SKIN

Nu Skin’s year-over-year revenue growth in the first quarter was 31%. Last year’s Q1 figure was US$518 million and this year’s was US$677 million.

Among Nu Skin’s regions, the highest percentage growth came from EMEA (115%). It was followed by Americas/Pacific (100%). Japan reported 14%,China 9%, South Korea 7% and Hong Kong/Taiwan 1% sales increases. The only negative growth was in Southeast Asia by -3%.

“We are very pleased with a strong start to 2021 with our highest-ever first quarter revenue and earnings per share,” said Ritch Wood, company CEO. “Our innovative beauty and wellness product initiatives powered by our social commerce business model led to 34% growth in our customer base over the prior year and a 22% increase in global sales leaders. We continue to improve our geographic balance, driven by ongoing strong performance in the West, providing a more diversified and sustainable growth profile.” Also during the investors’ call, Ritch Wood said currently beauty devices make up about 30% of Nu Skin’s revenue and are a key growth driver.

In February this year, Nu Skin announced its CEO transition plan. Accordingly, company president Ryan Napierski will replace Ritch Wood in June.

Nu Skin management announced their expectations as US$680 to US$705 million revenue for the second quarter (+11 to 15%) and US$2.80 to $2.87 billion for the whole year of 2021 (+9 to 11%).

For more on Nu Skin’s first quarter performance, please click here.

TUPPERWARE

As it was in the title of Tupperware’s press release, the turnaround plan seems to be well under way. Company’s first quarter sales growth was 22%, reaching US$460 million. All business segments reported healthy growth figures in Q1: Asia 4%, Europe 20%, South America 27% and  North America 45%. Sales increase in the U.S. was 83%!

Interesting to note here, unlike some of its competitors, Tupperware’s global business is quite evenly distributed among its segments is: Asia 27%, Europe 28%, South America 32%, and North America 13%.

After the first quarter, Tupperware’s global active sales force also increased by 16% to 568,000. The highest increase came from South America (50%).

“The strong financial performance this quarter is a concrete example that we are strengthening the foundation of our company. We continue to revitalize the brand through the expanded use of digital tools by our sales force to solve consumer needs,” said Miguel Fernandez, President and CEO of Tupperware.

Commenting on the plans for the future, Miguel Fernandez told they will expand their business-to-business partnerships where Tupperware sells its products to retailers who then use the products in their loyalty programs. As reported, company is now working with major brands in Mexico, Brazil and Europe. Additionally, Tupperware is testing new channels in the U.S., such as home shopping channels.

Management did not provide guidance for the coming quarters, “because of the uncertainty still around COVID-19 as well as the turnaround plan”, as stated.

As a closing note, Tupperware celebrates its 75^th anniversary this year, a very important milestone.

For more on Tupperware’s first quarter performance, please click here.

USANA

USANA started the new year with an impressive 16% quarterly sales growth over last year: US$308 million versus US$266.6 million. In 2020, USANA’s annual sales growth was 7%.

All geographical business units made positive contributions to the sales increase in Q1: Southeast Asia Pacific grew by 27%, China by 13%, and each of Americas-Europe Region and North Asia by 11%.

Quite satisfied with the results, CEO Kevin Guest said, “We had an excellent start to the year largely due to continued strong consumer demand for our high-quality products. Our strong top-line performance was driven by double-digit year-over-year sales growth in each of our regions, and we expect the execution of our 2021 global growth strategy will continue to generate growth in the remainder of the year.”

In late March, USANA launched its “Active Nutrition” line that aims at promoting healthy weight management, digestive health, energy and hydration. The initial launch phase included the United States, Canada, Mexico, Australia, and New Zealand, and the management said the feedback from customers has been very encouraging. This new line was not launched in China, USANA’s biggest market generating about 50% of its business. Management is not expecting to happen this year due to the regulatory requirements there.

Company also announced it has increased its revenue expectation for 2021 to US$1.24 – US$1.28 billion. If achieved, this will mean a double-digit growth this year as compared to 2020.

For more on USANA’s first quarter performance, please click here.

Generally speaking, the industry’s start to this year gave very encouraging signs that even better days may lie ahead. We will wait to see what the coming months will bring to us.
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Hakki Ozmorali is the Founder of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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The post Direct Selling Industry: A Strong Start to 2021 appeared first on The World of Direct Selling.

HERBALIFE

Herbalife ended the year with growth records: 1) Highest annual revenue in company history, 2) Largest fourth quarter global sales ever, 3) Best yearly sales in Asia-Pacific, EMEA and North America regions.

Herbalife’s fourth quarter sales was $1.4 billion and this represented 16% revenue growth from previous year’s same quarter. North America posted 33%, EMEA region 31%, Asia-Pacific 14% and South-Central America 10% sales increases. 36 of the EMEA countries came up with double-digit sales growth in the quarter. Among these, some stood out with remarkable results: Italy (34% growth), Spain (54%), France (57%) and the UK (129%).

The two Herbalife regions that reported negative growth in Q4 were China and Mexico.

Chairman and CEO John Agwunobi was very happy with the results, saying, “Simply put, 2020 was an amazing year, the best year ever for Herbalife Nutrition, and a testament to the strength of the company and the resilience of our distribution channel. Although 2020 was a record-setting performance year, I believe the best is still to come.”

With this impressive finish, Herbalife’s 2020 annual sales hit $5.5 billion, up 14% from 2019. This 14% rate of yearly sales increase was Herbalife’s best YOY rate of growth in the last 10 years.

Herbalife management anticipates a further 6% to 14% global sales increase in 2021.

For more on Herbalife’s fourth quarter and 2020 performance, please click here.

NATURA &CO

Natura &Co’s consolidated net revenue in Q4 was R$12 billion (approx. US$ 2.2 billion), up 24.3%. The company reported sales growth in all four of the group’s brands.

Company’s 2020 full year performance was remarkable as well: Consolidated revenue increase was 12%, reaching  R$37 billion (approx. US$ 6.6 billion). Among the group brands, Natura &Co LATAM’s sales increased by  9%, Avon International’s by 3%, The Body Shop’s by 32% and the smallest business unit Aesop’s by 50%.

As was stated by the management, The Body Shop owed much of this success to its “at-home” business (206% sales increase in Q4) and e-commerce (72% increase).

Natura &Co LATAM generates the largest business for the company, accounting for 56% of the group revenue. It is followed by Avon International (25%) and The Body Shop (14%).

Roberto Marques, Executive Chairman and Group CEO of Natura &Co, said: “In a year of unprecedented challenges, Natura &Co associates and our network across all of our businesses showed care and adaptability in the face of a global pandemic, demonstrating both our purpose-driven approach to business and the strength of our omnichannel, multi-brand model. Our performance in the fourth quarter attests to that, with strong growth in sales and profits.”

For more on Natura’s fourth quarter and 2020 performance, please click here.

NU SKIN

Nu Skin reported $748 million revenue for the last quarter of 2020 and $2.6 billion for the whole year. Company’s quarterly growth rate was 28%.

At the regional level, all of the seven regions posted sales increases. Americas/Pacific came up with the highest sales growth in Q4 (83%), followed by EMEA (79%).

“Balanced Geographical Profile” has been emphasized by Nu Skin as a key pillar of company’s overall strategy. In fact, there has been a significant business shift from Nu Skin’s Eastern regions to Western ones in the last five years. You can see the comparison on the below chart:

“Our strong fourth-quarter results were driven by exceptional customer growth of 34% compared to the prior year,” said Ritch Wood, Chief Executive Officer. “The successful Boost and Nutricentials product introductions helped generate 28%revenue and 29% sales leader growth in the quarter.”

While describing the results of the steps taken in digital technology at the investors’ call, management said during Black Friday in EMEA, four months of inventory of “Galvanic Spa” products were sold in just 90 minutes.

Nu Skin’s expectation for 2021 is announced as 5% to 9% revenue increase. The yearly growth was 7% in 2020.

In September this year, Nu Skin will witness a CEO transition. CEO Ritch Wood will retire after a 30-year career with the company. He will be replaced by Ryan Napierski, Nu Skin’s current President. Ryan Napierski has also been with Nu Skin for 25 years.

For more on Nu Skin’s fourth quarter and 2020 performance, please click here.

ORIFLAME

Oriflame, once again, closes a year with declining sales figures. Company’s total revenue decreased to €1.157 billion (approx. US$ 1.4 billion) in 2020 from €1.258 billion in 2019. This represented a drop of 8%. 2020 marks the third consecutive year with declining sales.

Oriflame’s fourth quarter performance was from reversing the negative trend within the year: Global sales decreased by 14% to €307.5m (€357.2m) in Q4.

All five regions of Oriflame reported negative growth in the last quarter: Asia (-19%), Turkey&Africa (-18%), CIS (-16%), Latin America (-14%) and Europe (-2%).

“2020 was a challenging year in many ways… After the first wave of the pandemic in the first half of the year, we experienced a positive sales turnaround in the third quarter that unfortunately was reversed in the fourth quarter. We also faced strong currency head winds negatively impacting our overall sales and margins. In addition, the combination of changed demand and product mix, together with relatively long inventory replenishment lead times, led to product availability challenges and accordingly impacted sales negatively in certain product categories towards the end of the year,” commented CEO Magnus Brännström.

In fact, there was a strong shift in Oriflame’s product mix. Color cosmetics’ share declined from 19% to 15% in Q4, wellness category’s jumped to 17% from 13%.

For more on Oriflame’s fourth quarter and 2020 performance, please click here.

USANA

USANA is among those direct sellers that ended 2020 with quite positive results: 15% sales growth for the last quarter and 7% for the whole year.

In the fourth quarter, all of USANA’s regions contributed to this result: Southeast Asia Pacific +34%,  North Asia 17%, Americas and Europe 14%, and Greater China 5%.

Kevin Guest, CEO and Chairman of the Board said, “Our fourth quarter results were better than expected and cap off a year during which USANA delivered remarkable results despite continued challenges from the pandemic…. As we kick-off 2021, we are confident that we are positioned to deliver another year of solid growth for USANA.”

China is currently USANA’s largest region, generating 47% of company’s global revenue. When asked about plans for international expansion during the investors’ call, Kevin Guest said their strategy for several years had been focusing on existing markets and on growth in those markets. Although they see now international expansion is a potential growth opportunity, it is not the primary strategic growth strategy for the company, he added.

USANA expects  $1.21 – $1.27 billion sales in 2021.

For more on USANA’s fourth quarter and 2020 performance, please click here.

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Hakki Ozmorali is the Founder of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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HERBALIFE

Herbalife reported $1.5 billion sales for the third quarter. This was an increase of 22% compared to the third quarter of 2019 and represented the largest quarterly result in company history. Just as significant, year-over-year growth was recorded in company’s all geographic regions but one.

North America’s growth was 55%, EMEA’s 38%, Asia-Pacific’s 10%, South & Central America’s 8%, and finally China’s was 5%. Mexico was the only region that reported negative growth (-5%).

After the third quarter, Herbalife announced its fourth quarter 2020 and full year 2020 outlook based on current business trends: 10-20% sales growth for the fourth quarter and 12.2-14.7% growth for the whole year. This shows us Herbalife is targeting this year to be a $5+ billion company.

Herbalife’s CEO John Agwunobi commented, “During the third quarter, we achieved another worldwide sales record, with reported net sales exceeding $1.5 billion and growth of 22.3% compared to the prior year. Three of our six regions, North America, Asia-Pacific and EMEA, along with 24 countries set new quarterly net sales records. We have also seen growth in our sales force, which is now the largest it has ever been.”

Some of the impressive growth performances at country level in Q3 were:  Turkey 137%, U.S. 50%, and Spain 43%.

For more on Herbalife’s third quarter performance, please click here.

NATURA &CO

Natura group’s third quarter was a remarkable one for all of its businesses. Growth performances were as follows: Natura &Co Latam +30%, Avon International +23%, The Body Shop +52%, and Aesop +67%. Consequently, group consolidated revenue represented 32% increase from last year’s Q3.

As for as individual markets are concerned, management specifically mentioned outstanding performances of Natura brand in Argentina, Mexico and Chile. Brazil, Russia and Turkey were Avon’s more successful markets in the third quarter.

From The Body Shop perspective, company reported a significant shift to direct sales and e-commerce. The Body Shop’s direct sales business grew by 333%, and e-commerce by 103% in the last quarter. As opposed to these more-than-satisfactory results, the performance of The Body Shop’s retail business was noted as showing ”slower recovery”.

Roberto Marques, Executive Chairman and Group CEO said, “Enabled by continued digitalization, our brands delivered strong results in the third quarter, with significant growth in sales and margin improvement. In an environment that has remained challenging throughout the world as a result of the Covid-19 pandemic, we delivered superior results compared to the CFT market both globally and in Brazil. Our performance this quarter attests to the strength of our fundamentals, our unparalleled Direct-to-Consumer reach, and the resilience of our omnichannel, multi-brand model.”

For more on Natura &Co’s third quarter performance, please click here.

NU SKIN

Nu Skin CEO Ritch Wood’s comments after the third quarter were: “We generated revenue and earnings per share well above expectations. We drove revenue improvements in all but one reporting segment. We are outpacing our 2020 growth projections due to strong product demand and ongoing digital investments. We are also benefitting from the current environment where more individuals are working from home and shopping online. Currently, approximately 90% of Nu Skin revenue is coming from digital transactions.”

Nu Skin undoubtedly had a more than satisfactory quarter: 19% global sales growth with positive contributions from all its regions but China (-3%). Americas & Pacific grew by 81%, EMEA 72%, Southeast Asia 7%, Japan 6%, South Korea 5% and Hong Kong & Taiwan 4%. Management ties this high-growth in their Americas & Pacific region to the relaunch of the U.S. business. This relaunch project is branded as “Discover the Best U.S.””

With this Q3 performance, Nu Skin’s year-to-date revenue is almost the same as what it was in 2019. On top this, management announced its last quarter revenue expectation as $720 to $750 million. This will bring Nu Skin’s year-end revenue to $2.55 to $2.58 billion. This will be 6 to 7% yearly growth for the company.

For more on Nu Skin’s third quarter performance, please click here.

ORIFLAME

Oriflame’s third quarter sales was €281 million, down 3% from the third quarter of 2019 (€289 million). Company’s year-over-year revenue growth performance is -6%

“The challenges from Covid-19 and its impact on the people and economies around the globe continue, and we stay humble navigating our path forward with care. So far, the fourth quarter shows a low single digit growth in local currency. We believe that the strength of our business model, products, digital tools and foremost our people will continue to build a stronger Oriflame,” said CEO Magnus Brännström.

Latin America (-17%) and Asia (-16%) were the two regions responsible for Oriflame’s negative growth in Q3. Turkey & Africa reported 10% revenue growth, Europe 9%, and CIS 7%.

Just like Nu Skin, Oriflame also benefitted from digital initiatives. Company said 97% of its global orders were placed online. Mobile use in the third quarter was 83% of total users and 64% of total orders were placed using mobile devices.

Following the third quarter, Oriflame’s year-to-date total sales is about 94% of last year’s.

For more on Oriflame’s third quarter performance, please click here.

TUPPERWARE

Tupperware reported figures that all looked promising this time: Its sales was $477.2 million in the third quarter, up 14% from Q3 of last year, average active sales force was up 10% and sales per active was up 10%.

The company said these numbers reflected “strong engagement by the sales force utilizing digital tools and techniques to bring Tupperware’s reusable products to market during unprecedented times”.

After this positive quarterly revenue figure, Tupperware’s year-over-year nine-month sales comparison is better now (-9% vs. 20% after Q2).

Looking into the regional performances, North America came up with an impressive +42% and Europe with +23%. Sales in the United States and Canada had the highest level of growth the company had seen in over 20 years and the highest level of absolute sales in the fourth quarter of 2002, as management stated. South America reported 4% sales increase and Asia-Pacific was the only region that performed worse (-6%).

Miguel Fernandez, President and CEO was happy after these results saying they “reflect a rapid adoption of digital tools by our sales force to combat the social restrictions surrounding COVID-19, and the increased consumer demand for our innovative and environmentally friendly products, as more consumers cook at home and are concerned with food safety and storage.”

During the earnings call, Vice Chairman Rich Goudis showed where the company was headed at:  “We’re shipping from a push model to both consumer pull and sales force push. We will enter more product categories where the Tupperware brand is given permission by the consumer. We will create a good, better, best product and pricing strategy to reach and address the needs of all consumer socioeconomic levels.”

For more on Tupperware’s third quarter performance, please click here.

USANA

Third quarter net sales increased at USANA by 15% year-over-year to $299 million. Company tied this to “strong product demand and successful incentive programs”. First three quarters altogether, USANA’s sales is 4% above last year’s.

“This was an all-around very successful quarter for the company. During the quarter, our strategies led to strong global customer demand for our high-quality nutritional products. We also offered various incentives and promotions that were well received and contributed meaningfully to sales and customer growth for the quarter,”  said Kevin Guest, CEO and Chairman.

USANA’s third quarter sales in Southeast Asia Pacific was up 41%, North Asia up 24% and China up 4%. Americas & Europe region also reported 10% growth. China is USANA’s largest market with about 45% share.

For the whole of 2020, management has increased its sales expectations to $1.090 – $1.115 billion (from $1.050 – $1.100 billion). This, if achieved, will mean 2020 will be a year of growth as compared to 2019. Last year, USANA recorded 11% revenue decline.

On the much-emphasized launch of “Active Nutrition” line, management said the target was early next year. It is planned to be a market-specific launch but not all at once due to the different regulations in the markets. The target audience for this line would be  “female, ages 25 to 35”.

For more on USANA’s third quarter performance, please click here.

As we approach the year-end, we have started getting more and more positive news from the industry. We are all eager to see the annual results.

(*) Please click below links to read about how these companies did before:
First Quarter, 2020
Second Quarter, 2020

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Hakki Ozmorali is the Principal of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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The post Direct Sellers Thrive in the Third Quarter appeared first on The World of Direct Selling.

Medifast for instance, reported 13% revenue growth in the first half of the year. Nature’s Sunshine’s figure was +0.6%. Mannatech’s sales on the other hand, declined by 5.6% in the first six months.

Shall we dive into some of the direct sellers’ reports more deeply? Let’s do it.

HERBALIFE

Following a very successful first quarter, Herbalife’s performance in the last three months was also in the positive direction: $1.346 billion sales with 9% global revenue growth. In fact, management announced the second quarter of 2020 was the largest quarter in Herbalife’s 40-year history in terms of “volume points”.

North America reported 39% quarterly sales increase, EMEA 14% and China 12%. On the other side, South & Central America region came up with 23%, Mexico with 21% and Asia-Pacific with 5% declines.

In the U.S., year-over-year volume points were at an all-time high and the monthly average number of unique customers increased year-over-year by more than 25% in the second quarter, the management reported. Additionally, some of European countries’ growth figures were very impressive: Spain 20%, Turkey 27%, France 55%, and the UK 90%. Herbalife distributors in Europe were able to adapt quickly to the new circumstances and transfer their businesses into a virtual environment, company said.

CEO John Agwunobi said, “As the numbers and facts demonstrates Herbalife Nutrition is performing at an exceptional level and we believe our distributors’ entrepreneurial spirit, combined with our quality line of nutrition products, will lead to continued growth. From a demand perspective, our business is backed by favorable consumer trends in an environment that has never been more responsive to what we bring to the table.”

For the remaining of 2020, the management announced that the extent and duration of business disruption and the impact from the pandemic could not be estimated so it would not provide a guidance.

For more on Herbalife’s Q2 performance, please click here.



NATURA &CO

Natura &Co’s first quarter revenue growth was 2%. This time it reported a significant decline: -13%.

Among the brands, Aesop recorded 35% growth in Q2 and The Body Shop increased its sales by 16%. However, the two of the larger brands posted negative growth figures: Natura &Co LATAM -17%, and Avon International -22%. Avon International also lost 36% of its active representatives in the seond quarter.

Natura &Co. LATAM composes of Latin American operations of the whole group, including Avon’s Latin American units. Within this, Natura was up 4.4% and Avon brand was down 35%.

Avon’s performances both in Latin America and in International units were tied to the impacts of lockdowns and the “cyber incident”. Management announced there were positive signs, though, in the third quarter.

Roberto Marques, Executive Chairman and CEO, commented, “Every brand and business in the group became truly omnichannel during the second quarter and given the circumstances, helped deliver a robust and competitive overall performance.”

For more on Natura &Co’s Q2 performance, please click here.

NU SKIN

Nu Skin reported $612 million sales in the second quarter. This is 2% less than its sales in Q2 of 2019 ($624 M). However, Nu Skin’s first quarter revenue was down 17%. So, this may indicate an improvement. Still, its global revenue growth as of mid-year is -9% compared to 2019.

Similar to the previous quarter, China contributed to this decline the most (-21%). China is Nu Skin’s biggest business unit. Its current share is 25% (down from 32% in mid-2019). Management was satisfied with China’s achievement in the second quarter saying it had performed close to where they had anticipated. At the beginning of the year, the anticipation was China to be down 20% to 25% and now Nu Skin expects it will be closer to 20%.

Hong Kong/Taiwan unit reported -15%, Southeast Asia -11%, and South Korea -9%. Positive performances were from Americas/Pacific (+38%), EMEA (+17%), and Japan (+5%). Management said growth in the last quarter was driven by the West, “where socially-enabled business is more broadly adopted”. Nu Skin had 51% customer growth in EMEA region led by the UK, Germany, Poland and South Africa. Company announced more than 85% of its global revenue was coming through digital transactions.

“Our business performed well above expectations in the second quarter of 2020 driven by our socially enabled business model, strategic investments in technology and manufacturing, and our balanced product portfolio,” commented Ritch Wood, CEO.

Nu Skin expects now to close this year with $2.37 to $2.45 billion revenue. Company’s guidance after the first quarter was $2.17 to $2.26 billion.

For more on Nu Skin’s Q2 performance, please click here.

ORIFLAME

Oriflame’s sales further declined in the last quarter (-12% compared to 2019) after the first quarter (-2%). Company’s total revenue is 7% less so far this year.

All regions of Oriflame reported declining sales in Q2: Latin America -34%, Asia -20%, Turkey & Africa -10%, CIS -2%, Europe -1%:

On the results, CEO Magnus Brännström said, “Despite a challenging start of the quarter, impacted by various lockdowns and difficulties to fulfil orders in several of our markets, we ended the quarter with local currency growth in June. The third quarter has started with around 10% local currency growth, implying that the reactivation initiatives taken during the spring have been effective and that our social selling platform is successful.” Oriflame reports that its supply was deeply impacted by the lockdowns in China, India and Italy.

In line with the general trend, company’s wellness product category was the best overall sales performer in the quarter, increasing its share to 18% from last year’s 13%.

As stated by the management, during the second quarter 97% of the Oriflame’s’ orders globally were placed online, of which 63% were from mobile devices. This is shown as a major factor behind reducing the negative impact on sales, when people stay at home due to the COVID-19.

For more on Oriflame’s Q2 performance, please click here.



TUPPERWARE

Tupperware has not seen a sales increase in a quarter compared with previous year since 2017. Company continued its downward trend in the second quarter of 2020.

Q2 sales was down 16% versus last year ($397 m vs. $475 m). South America contributed to this with -34%, Europe with -25%, Asia-Pacific with -14%, and finally, North America with -1%.  With this result, Tupperware’s mid-year revenue is 20% behind what it was in mid-2019.

Tupperware’s global active sales force also shrank in Q2 by 17%, declining to 467,000.

“In the second quarter we pivoted to a new way to lead the business, a new way to operate the company and embraced a new growth strategy. We are now increasing our efforts to contemporize Tupperware and become a global leader in sustainable consumer solutions while leveraging the consumer influence of our iconic brand,” commented Miguel Fernandez, CEO of Tupperware.

The management said Tupperware Board had approved a new growth strategy and they would share the full strategy later this year once they have “tangible accomplishments to point to”.

For more on Tupperware’s Q2 performance, please click here.

USANA

USANA reported $259 million in the second quarter. This represented 1% increase compared to previous year. Sales in Asia-Pacific region was up 2%, and in Americas-Europe Region it was down 2%. A large portion of USANA’s business is generated in Asia-Pacific. Markets in this region account for more than 80% of global sales. China alone produces about half of USANA’s revenue.

CEO Kevin Guest said, “We generated nearly 8% growth in active customers. We also continued to successfully execute a virtual sales and operating strategy to deliver our results. Finally, we offered several promotions and incentives during the quarter that benefited net sales and our overall results.”

As of mid-year, USANA’s revenue is flat versus 2019. After the second quarter, management increased its 2020 revenue outlook to $1.05 – $1.10 billion which if achieved, is in line with the sales in 2019.

For more on USANA’s Q2 performance, please click here.

There are reasons to be optimistic about the industry’s future. That’s for sure. We will see how the companies and the independent contractors will further adapt themselves to the changing conditions in the second half.

…..

Hakki Ozmorali is the Principal of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

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