World Cup Loser: Herbalife (HLF)
Herbalife (HLF) missed Wall Street’s earnings estimate for the first time in 22 months, hurt by a number of factors, including costs for defending itself against the accusations of billionaire Bill Ackman.
Almost lost in the noise was weak performance its critical South American market. As CFO John Desimone said on a conference call with analysts:
“We believe that softness in the quarter was due in part to an economic slowdown as a result of Brazil hosting the World Cup and the impact that has on Nutrition Club attendance.”
In other words, Herbalife distributors and consumer were too distracted by the world cup to get any work done or follow the program.
Herbalife has plenty of bigger issues to deal with, but if it’s still around this time next year, it will come up against some easy comparisons.