ForeverGreen Worldwide Corporation, a leading direct marketing company and provider of health-centered products, announced today financial results for the second quarter ended June 30, 2016.
Second Quarter Financial Highlights
- Total revenues decreased 32.8% to $10,798,076 from $16,079,017 during Q2 2015
- Sales and Marketing expenses decreased 48.6% to $4,056,821 versus$7,890,203 during the comparable period in 2015
- General and administrative expenses decreased 36.3% to $3,387,969 from$5,322,385
- Total Operating Expenses decreased 43.7 % to $7,444,790 from$13,212,588 during Q2 2015
- Net Operating Income Increased from a loss of $1,173,114 in Q2 2015 to a gain of $338,151
- Net Income for the quarter was $189,719 or .01 EPS compared to a loss of $1,446,797 or (.06) EPS during Q2 2015
Founder and CEO Jeff Olson announced today the appointment of Rafael Avendano Santos as official General Manager of Nerium Mexico.
“It is an absolute honor to see our Mexico operation reach its two-year anniversary as it continues to grow from Mexico City and Monterrey all across the country. I know we will see Mexico success and excitement surge as we welcome GM Rafael Avendano, an accomplished professional who shares the Nerium values and culture, to our Nerium Mexico family,” said Founder and Chief Executive Officer Jeff Olson.
Since the company’s August 2011 launch in the U.S., Nerium has created skincare products focused on science and clinically proven to produce real results. After breaking sales records while building millions of consumer fans in the U.S., Canada, Mexico and South Korea, Nerium launched its Japan opening in July as part of its Asia-Pacific expansion. Mexico was Nerium’s third country opening in 2014.
The recent $200 million Herbalife settlement leaves us with some open questions about how Herbalife will do in the stock market and what Bill Ackman will do with his short position.
In case you’re not entirely familiar with the concept, a short position is when a broker sells you a stock that they do not yet own. The broker is betting against a particular company, in this case Herbalife. The broker sells you “borrowed” stock at say $50 a share. They are betting that the stock will drop below $50, at which point they will actually buy the stock, at say $40. The broker then makes the difference of the $10 per share; you paid $50 and the broker paid $40. To put it simply, the broker—in this case Ackman—is betting that a company’s stock will decrease in value.
As of July 29, 2016, the stock price for Herbalife is up to 68.15 which is a positive 1.72% change. If you look at the past year, the stock price dropped in January of 2016 then gained over the last six months (up 47.22%). The recent settlement with the FTC coincides with another boost to the stock price. It seems that the market perception of this settlement is that it shows the FTC does not see Herbalife as a pyramid scheme.
LegalShield, New Avon, Stream, Youngevity, LifeVantage, Direct Selling Europe, LEO
Primerica Life Insurance Co. and its subsidiaries, including direct selling company Primerica Inc., have received another round of superior ratings from global credit rating agency A.M. Best.
Health and wellness company Isagenix is taking a strategic approach to building relationships through a new online community focused on healthy aging.
Network marketing is in the midst of a rapidly advancing Orwellian era. It’s been slow to develop, starting in 1996 when the Ninth Circuit Court of Appeals issued its decision in Webster v. Omnitrition, but it’s snowballed in the past two years. Today the snowball grew exponentially with the announcement that the Federal Trade Commission and Herbalife have reached a settlement agreement.
Watch for detailed updates and analysis on the settlement. We’ll break it down into many little pieces to determine how it will impact your business. But today we just have time for a broad sweep so I’m just going to address some critical topics.
The obvious first question is: “Does this settlement affect my business?” It’s certainly an important question. After all, the FTC was investigating Herbalife and analyzing Herbalife’s program, so why should it apply to any other company? The answer is two-fold. There’s the technically correct answer, and the real-world practical answer. The technically correct answer is that the FTC settlement with Herbalife has no binding impact on any other network marketing business. The real-world answer is quite different. The changes that Herbalife must implement offer a clear roadmap to the standards that the FTC expects all direct sellers to conform, and those are the standards that it will pursue in future cases against direct sellers.