Herbalife (NYSE: HLF), a global multi-level marketing corporation that develops and sells dietary supplements, has witnessed a sales increase according to CEO Dr. John Agwunobi. He mentioned that customers were prioritizing health and wellness throughout the pandemic.
“A lot of people around the world are waking up to the notion that health is wealth, and they’re spending the time to live healthy, balanced lives,” Agwunobi said on “Closing Bell.” “And they’re looking for companies like ours that can supply them with healthy nutrition.”
The company disclosed that net sales grew 8.6% to USD1.3 Billion throughout the quarter in comparison to the previous year.
“Our business had a strategy that was working really well before coronavirus hit. Our products were selling really well before the pandemic hit,” said Agwunobi.
According to Agwunobi, the pandemic has forced people to reconsider their health choices. The U.S. has experienced the closure of gyms and has had to restructure their fitness routines to involve at home-workouts and solutions.
A TD Ameritrade survey revealed that despite gyms starting to re-open, many people are choosing to maintain a “more affordable” fitness lifestyle from home. Furthermore, the pandemic has highlighted the importance of healthy habits that aid things such as obesity and cardiovascular disease.
“If you think about it, gyms are really a part of the health-care delivery system, and to shut us down is counterproductive,” Planet Fitness CEO Chris Rondeau told CNBC last month. “We really are part of the solution, not the problem.”
Agwunobi also said that the company has seen an increase in individuals wanting to sell herbalife products.
“A number of individuals, they’re sitting at home, they’re working on their computers and they’re realizing that there may be another way to add an additional income stream,” said Agwunobi, who is also a former Walmart executive, former president of health and wellness for the retailer. “So we are finding that many people are coming into the business with a view to helping develop their own income streams.”