The fourth quarter of 2024 brought a mix of resilience, transformation, and strategic shifts for direct selling companies. While some reported growth, others, such as Medifast, faced substantial declines. Herbalife saw steady momentum with an increase in new distributors, even as sales remained relatively flat, while USANA navigated a shifting market with an acquisition to bolster future growth.
From leadership changes to revamped compensation models and new customer engagement strategies, direct sales companies are adapting to evolving consumer demands and economic uncertainties. This article reviews six major direct sellers’ Q4 growth performances, key business decisions, and expectations for 2025.
Herbalife reported $1.2 billion sales for the fourth quarter (-0.6%), and $5.0 billion for the full year 2024 (-1.4%). Herbalife’s Q4 sales were at the high end of its guidance for the period. For the fourth quarter, the number of new distributors joining Herbalife worldwide increased 22% year-over-year, marking the company’s third consecutive quarter of year-over-year growth.
“With three consecutive quarters of new distributor growth, a new incoming CEO and significantly improved margins, we enter 2025 with strong momentum,” said Michael Johnson, Chairman and CEO.
Together with its fourth quarter financials, Herbalife also announced a CEO change: Former distributor, current company President Stephan Gratziani is appointed as Chief Executive Officer, effective May 1, 2025. As part of this transition, Herbalife Managing Director of International Markets, Rob Levy, will take on the role of President, also effective May 1, 2025.
Going back to the company’s Q4 sales, we see China as the worst-performing region (-20%), followed by North America (-3%). The remaining three regions reported positive figures: Asia-Pacific +2%, Latin America +2%, and EMEA +3%.
During the earnings call, the management said they made a major strategical shift in the way they had been doing business in China, focusing more on the customers. For the first time, Herbalife launched a customer loyalty program last year. They said this program yielded the kind of results that they wanted, and now Herbalife has a much stronger and growing customer base. As a side note, China is the smallest of all Herbalife regions in sales volume.
Herbalife’s first quarter 2025 revenue forecast is -5.5% to -1.5%, and full year 2025 guidance is -3% to +3%.
For more information on Herbalife’s 2024 fourth quarter performance, please click here.
Medifast’s 2024 last quarter revenues came in at $119 million, at the high end of company expectations, down 38% from the same period of 2023.
This result was driven by both a decrease in the number of active earning coaches and lower coach productivity, management said. In fact, the total number of active earning coaches decreased by 34% compared to the fourth quarter of 2023.
The company’s full year sales performance in 2024 was -44%.
Chairman and CEO Dan Chard said, “This past year was a pivotal year for Medifast, as we continued to transform our business to meet the changing nature of a health and wellness market that has been revolutionized by the rising acceptance of GLP-1 medications. As we look ahead, our top priorities center on reestablishing growth across all of our key metrics, including driving coach productivity through accelerated customer acquisition, and expanding the number of active earning coaches.”
To further support new customer acquisition and encourage deeper engagement, Medifast recently introduced a two-week starter kit designed to lower barriers to entry for prospective customers.
Management said their marketing efforts continue to focus on three population groups: 1) Those who prefer a medication-free based approach to weight loss, 2) those currently using GLP-1 medications, and 3) those transitioning off medications.
The company expects the first quarter of 2025 revenue to be in the range of $100 million to $120 million. Medifast’s 2024 first quarter revenues were $175 million.
For more information on Medifast’s 2024 fourth quarter performance, please click here.
Natura &Co’s consolidated fourth quarter revenues were BRL 7.7 billion (approx. $1.3 billion), up 63%. Revenue growth was fueled by the strong performance of the Natura brand, which went up in Brazil and in other Hispanic markets, the management reported.
Natura Brazil reported a 21% year-over-year constant-currency revenue increase in the quarter, driven by productivity and volume gains mainly boosted by increased cross-selling, as well as marketing and innovation investments. Natura Hispanic Latam reported a 34% year-over-year revenue increase. Avon Brazil‘s revenue trend landed at -1%, and Avon Hispanic Latam’s at +1.7%.
Group CEO of Natura &Co Fabio Barbosa said, “2024 was another important year in the Group’s simplification strategy announced in July 2022. Following the divestments of Aesop and The Body Shop, the deleveraging process, and the launch of Natura and Avon integration in Latin America (“Wave 2”) in 2023, 2024 was primarily marked by the successful completion of the Wave 2 in Brazil – our most important country. – and the voluntary restructuring of API, which was concluded in December.”
The management reiterated that they continue to study strategic alternatives for a potential separation/sale of Avon International, while they continue to work on an accelerated restructuring of the business and minimizing cash outflow in the short term.
For more information on Natura &Co’s 2024 fourth quarter performance, please click here.
Nature’s Sunshine reported a9% sales increase in the last quarter ($118.2 million versus $108.9 million in Q4 of 2023) and exceeded the forecasts by 8%.
The company closed the year with 2% growth compared to the previous year. Nature’s Sunshine reported 5% revenue growth in 2023, too.
The biggest contribution to this quarterly result came from Nature’s Sunshine’s Asia region: 18% growth. Asia generates almost half of the company’s global revenues. The other region that recorded growth was Europe (8%). North America (-2%) and Latin America (-5%) reported declining sales.
“The fourth quarter was one of our strongest quarters ever. As we move into 2025, we reiterate our commitment to delivering the highest quality, innovative products to our customers and to empowering our distributor base to drive continued growth and profitability. Combining that with our cost-savings initiatives and operational efficiencies, which are already making a positive impact, will enable us to continue making strong progress against our strategic initiatives while delivering long-term, sustainable shareholder value in the face of increased macroeconomic uncertainty,” said Terrence Moorehead, CEO of Nature’s Sunshine.
Nature’s Sunshine expects full year 2025 net sales to range between $445 – $470 million. This figure was $454 million in 2024.
For more information on Nature’s Sunshine’s 2024 fourth quarter performance, please click here.
Nu Skin closed the last quarter of 2024 with $445.6 million sales. This was a 9% decline compared to $488.6 million sales of Q4 2023. The forecast for the quarter was $410 to $445 million sales. So, this figure was higher than the company’s expectations for the quarter. Nu Skin’s 2024 total sales were $1,732 million (down 12% versus 2023).
Management was happy with this result, and CEO Ryan Napierski said, “We are pleased to beat our fourth quarter revenue guidance, generate sequential revenue growth and exceed our adjusted earnings as we materially completed our restructuring plan. As we look ahead to 2025, we anticipate improving business trends and a return to year-over-year growth in several of our markets but also anticipate continued economic challenges and poor consumer sentiment, particularly in Greater China and South Korea.”
South Korea reported 31% sales decrease in the last quarter, and China 21%.
The company announced it will focus in 2025 on strengthening its core business with the continued rollout of the enhanced sales performance compensation plan in several markets as well as accelerating growth in developing markets. Nu Skin is also planning to introduce this year “Prysm iO”, an intelligent wellness device that will provide consumers with the nutritional insights needed to look, live and feel better.
Nu Skin’s “enhanced” compensation plan, as the management explained, aims at more effectively rewarding affiliates for building their businesses in a social-first manner, while continuing to reward leaders for training and motivating their sales teams.
The company announced its expectation as $345 to $365 million sales (-17% to -13%) for the first quarter of 2025, and as $1.48 to $1.62 billion for the full year (-15% to -6%).
For more information on Nu Skin’s 2024 fourth quarter performance, please click here.
USANA’s fourth quarter 2024 revenues were $214 million, down 3% (Q4 2023: $221 million). Sequentially, sales were up 7%. With this, USANA the company ended the year with $855 million sales, a decrease of 7% compared to 2023.
“USANA delivered fourth quarter results above our internal expectations, highlighted by 7% sequential net sales growth,” said Jim Brown, President and CEO. “Positive momentum in the Americas & Europe region generated year-over-year and sequential sales growth in this region while performance in our Asia-Pacific region declined slightly and was in line with our expectations.”
USANA’s Americas and Europe region posted 1% year-over-year growth in the last quarter. Each of Southeast Asia-Pacific’s and China’s sales were down 3%, and North Asia’s were down 25%. China is company’s largest region with a 53% share in global sales.
The management announced the consolidated sales expectation for 2025 to be between $920 million to $1.0 billion. $145-160 million of this figure is to come from USANA’s Hiya subsidiary.
During the quarter, USANA acquired Hiya for $205 million. Hiya is a growing, direct-to-consumer children’s wellness brand and is expected to build upon their leadership position in the children’s health and wellness market.
The management said their 2025 growth strategy includes the following initiatives:
- A higher cadence of new product launches and improvements to existing products, tailored to local markets,
- Strategic enhancements and modifications to field’s incentive offering, which are intended to incent customer growth and improve pay for performance,
- Strengthening brand messaging, story, and value proposition,
- Accelerating Associate engagement activities around the world.
For more information on USANA’s 2024 fourth quarter performance, please click here.
…..
Written by Hakki Ozmorali, Founder of WDS Consultancy, a management consulting and online publishing firm in Canada. WDS Consultancy is the publisher of The World of Direct Selling. You can contact Hakki here.
SHARE THIS:
Leave a Reply