HLF - Earnings call transcript Q3 2019 | Herbalife Nutrition Ltd.

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Operator

Good afternoon and thank you for joining the third quarter 2019 earnings conference call for Herbalife Nutrition Ltd.

On the call today is Michael Johnson, the company's Chairman and CEO, John DeSimone, the company's Co-President and Chief Strategic Officer, Dr. John Agwunobi, the company's Co-President and Chief Health and Nutrition Officer and Alex Amezquita, the company's Senior Vice President of Finance, Strategy and Investor Relations and Eric Monroe, the company's Director, Investor Relations.

I would now like to turn the call over to Eric Monroe to read the company's Safe Harbor language.

Eric Monroe

Before we begin, as a reminder, during this conference call, we may make forward-looking statements within the meaning of the federal securities laws. to actual unknown from results or subject that and those are anticipated. cause could to statements known risks and uncertainties discussed These differ materially

in associated complete quarterly to refer report XX-K recent release filings XX-Q. these of annual a SEC earnings we risks on our our For forward-looking you Form discussion today's statements and including our and to report business, encourage Form with most on

any us. statements to are information We of future any based release or do occurrence revisions update obligation as to reflect events, circumstances to any statement undertake forward-looking or required Our or forward-looking currently not events upon any by except or unanticipated the available law. report to to

be financial and measures manner, differ in Exchange financial as measures. We Accounting operations Securities addition, earnings measures schedules contained consistent Commission prepared comparable our more and believe greater management statements Principles, discussed results meaningful the non-GAAP that period-to-period U.S. In and call, referred measures in that evaluating financial this release. during Generally our from and to a of as accordance discussed these certain in with financial by Accepted to assist performance may preparing our in investors supplemental the detail non-GAAP in in performance

these also are section submitted the information SEC. to the of most comparable together in release press additional our GAAP at to supplemental of reconciliation non-GAAP A the herbalife.com. Investor included These measures earnings financial measures website, our is available with Relations reconciliations

call, volume makes during conference are they referring to points. volumes management when reference Additionally, to this

CEO, Michael over call the our Johnson. turn and Chairman now will I to

Michael Johnson

quarter us call. joining XXXX conference afternoon Good Thank everyone. for for our you third

executives into news right The this two XXXX. step releases into next really saw friends, right be and have great XX, effective some really have Agwunobi, And the confident would start John that lead the team are good place DeSimone, two by we to in CEO role President, our who I the March today, will Board we As to to Nutrition like John and who and you will in Herbalife the and the share congratulating our I quarter. of press future. great of people company

unique our John well-positioned would a like momentum before are I going. Agwunobi's experience, I into provide Dr. our about plan, quarter DeSimone's extensive qualification results. update to With our and brief record third positive we go on more detail keep transition to But

we points top volume year-over-year for our time were company and seven net of quarter XX our Third countries. an high reported growth in all sales

an the third call quarter, initiatives business trends track. our our And other in DeSimone in The in regions in on quarter. provide our are detail further in last China projected progressing. improving fourth in will last market quarter's improved the in on we to we along of the later John on the commentary recovery with China in some China As we trends continue that strategies discussed expect update on quarter is the and call.

moment We history in is Herbalife. believe the this great of a

most that are with are capable personally approach leaders worked have convinced who CEO I Directors since anniversary. and this our to and hands next time know the of as and company know business corporate John we Board time XXth our is right stepped a our We every we and taken we leaders for they ensure the we the carefully and the at the in forward. right and our the the seriously review John I very job. take we role year. back reporting this thoughtfully planning are drive are We will into quarter And and announcing have year, of plans record our succession earlier

Since nutrition Agwunobi unique accomplished and embodies has He philosophy. private official dedicated an John the the integral synergies our company health the has and business. health part a joining of people's to health values public as and been of understanding leader, of and intersection a and business and unique improving public and in physician, life his our Officer, has Health vision, XXXX background as Nutrition an our sector. John With company's Chief

has With an and in forward, important accreditations M.D., to to has of our impressive will commitment be premier nutrition a as including MPH asset building been MBA global the to a he played reputation and science-backed continue an company. John's company our an innovation, quality company. on tremendous list a role and nutrition, background and moving

Walmart. labs world, pharmacy the encompassed and pharmacies well wellness health all X,XXX Disease of of of U.S. retail advocacy, public and Secretary of John started U.S. service, and position his for largest Health state Department and of that X,XXX and career including clinics. employee manufacturing for His Health Control, also Health on Health entered National among the an more retailer as as optical nutrition, others. Walmart's before the as sector and provided Services, the then the Secretary advice big into first Florida centers and insight Centers operations, moving a for pediatrician wellness in the eyewear health in response. emergency the a medical than he Institutes Assistant XXX way, as reform, a of where FDA, corporate oversaw overseeing He informed responsibilities in-store public and He the division health Human

our Here distributors wellness through collaborated a technology network. innovating our we has the a at understanding development, personal has products scale sales. opportunity and product their communities of our continually and are customers proven to ensure areas impact distributor on health and positively deep the He with and have to John of global and Herbalife, in of we the

where have are two opportunity committed the we individuals have the success talented a who here of extremely Herbalife unique We at nutrition, to continued company.

his excited John than extraordinarily become we and Co-President leader a strategic March. function our and Nutrition. the for are company So next of Strategic business, been leadership Officer our role spent in more having played Chief deep in today, proven will announce he with DeSimone, also John President that is integral direction. to an an at knowledge of positions strategic XX of has decade with has a responsible In our us, each Herbalife years

extensively Specifically, XX% John product highest technology all approximately in-house standards. of to involved ensuring has Seed product and manufacturing quality including, critical in the strategies infrastructure and Feed, been bringing

working distributor also to with distributors integral of supervisor the was helping profitability He rates. to enhance our in improve high business, our economical and sustainability record their retention

treasury, CFO, world, the in For responsible the around and he departments during size. as all company for for was years served tax, company's relations doubled accounting, business including the X.X strategy the financial which investor he

team as plans partnering strategy, to and have term our drive growth to fortunate President serve to our further long our are our mission. We John help execute continue the with leadership

John built an extraordinary Agwunobi company team, our the and future. a John team into lead DeSimone are to

is shareholders, really John and news. together great employees I seamless work distributors, and closely John, will to ensure For this transition. a

leadership personally Nutrition things and for come As year the years stronger of actively involved than great I am I for both at and truly forward Herbalife exciting part visionary These to will I our said Herbalife them looking our Board mission know the am all of will beyond. passion ever. XXth as the in looking my the is being Chairman that Nutrition times and in the staying and I to they bring earlier, to come. are

hand to Dr. let Now over call the our CEO, next John me Agwunobi.

John Agwunobi

working his forward company. dedication honor entire prepare thank with Officer, Michael I look my Nutrition Thank of community, I to I proven continued and continuing his Herbalife work have look leadership Health want as closely forward our new In my behalf to Nutrition Co-President their vision, role I had to to the as him you role. for and team incredible Michael. On leadership throughout current with and transition. his the of to this I for trusted and Chief an of executives

foundation developed the initiatives ways in years come. for on initiatives to our in and lay key helped distributor have a we difference. strategic which Together, grow to to technology have product, business strengthen These to finding solid

Our and business bright customers, for our to trajectory and is of employees our is our all strong positive benefits our forward and our I distributors shareholders. for the continuing their and look future

how beginning people's our the improve I had lives. Since world about XXXX, our of with learn to the the are firsthand have around and they and I opportunity company distributors and dedicated to spend to joined the mission time company at passionate

to on all world. transition those learn talented the distributor to I my around leaders from continuing During CEO, plan

with Last relationship in but President. close certainly not new least, as role my John I am working DeSimone to be thankful continuing his

advisor besides learned and know, collaborated friend. have people And trusted have We side-by-side also as for two being almost years. smartest I one the from a been he him. much so has Co-Presidents of I

strong, the to goal leadership going. in collective momentum visionary be will our to positive Our business provide keep

over I And now would speaking the him. of like DeSimone, to call to John turn

John DeSimone

Michael the thanking I past years. over XX-plus his for want leadership start to

be this not company as it would Board. without he on and of Chairman are we all As today tremendous Herbalife just Nutrition we know, honored I And company is the believe started. further getting the staying is him

For the work forward time, am for two he continuing the learned to grow is have incredible as a years, nutrition we whose in working leading only nearly alongside Herbalife Nutrition experience and I that John I I not have our him of and friends, pleasure with purpose become is to Co-President but future. looking had have into visionary perfect to business.

these at Nutrition. our be and a talented Herbalife happy times ahead to and passion have the I employees of future great With we distributors, dedicated of am and part exciting

achieved an to high call. now highlighted all-time our Turning continued quarter, we quarter's from last the we volume on record geographic benefit to where result, the diversity we third point

volume the be As the record results were achieved review. to XXX-day China impacted continuing in by despite

grew China, of volume volume a of The improved volume by compared China, in In trends to sales currency trend Excluding regions the improvement we half the during six first X.X% two-year net the grew quarter, constant points grew five the saw net year. quarter. point material and in X.X% sales QX stack in X.X%.

our more a During on us partnership we Tencent, our distributors our products. service last e-commerce as capabilities with a features product more on live portfolio enabling sell will recently XX which with automated service October chat. personal months, solution improve digital Through instant our our with including significantly expanded announced customers the sales as and for this we to focus launched partnership, three pay, and reps help well providers recommendations e-store for

about initiative, next the XXXX. be phase tell, As of excited of are this half future first which of very the launched in you the we will can

growth CCTV tournament widely for with investment was initiatives quarter. and broadcast partnership China on Champions publicized Cup continue term impact the also program the to and in long the International the strategic China on growth, during leverage including which We soccer

experience continue including video the our ads. outdoor online pop-up along fourth a center and will a with We with city XX strategic quarter investments brand in campaign,

supported be had markets. year-over-year acceleration optimize Growth an product to Moving their expansion X%, The other of the of technology and growth U.S. point to continues customers' quarter another key to QX. support enhanced in experiences. volume tools U.S. business compared businesses year-over-year our by strong to the with trend line development and in distributors'

volume in which had currency local Turning were to decline X.X%. a sales X% from local net where last in growth. but off is net points year, quarter, the currency This down Mexico QX comp local down sales difficult slight were only XX% currency trends

was for the lap during more Korea growth increase from comps volume XX% The up was XX%. Vietnam region broad-based in fourth growth The all-time year-over-year. approximately set Asia-Pacific XX% XX,XXX by all year-over-year a added a India, volume by grew we and South new reported region by members. in which Indonesia XX% new volume as to XX% XX%. increased get difficult more the XXXX. year-over-year record in The we of quarter The the than has continue led a points. increased in high was preferred Indonesia, APAC XX% up region India Vietnam record quarter Korea, points. and QX volume and

driven improvement Looking in at we declined decline America. quarters. over which improvement the expect next continue was Volume meaningful This XX% by a sequential points trends to Central in was of improve QX. from to and couple the South Brazil, which X%

Africa, versus of QX pattern during in Turning region in slowdown in year XX for South quarter, to rates The XX grew growth the stacked accelerated Russian-speaking consecutive X% countries quarter. the its two and EMEA. growth XXXX increasing Eight QX a and the Spain, from consistent growth, totals despite the of Volume EMEA point top continued quarter by quarters during markets the XXXX which now the broad-based the were quarter. and rate Israel. increases last led

Alex I update the turn to financials. on will provide call over an the now to

Alex Amezquita

a billion the $X.X a Thank third this you foreign previously the and high points new approximately headwind. Volume dollar, for John. currency we stated, be record were for strengthening company. rates U.S. to the quarter exchange Due as continue was to

X.X% the by over in quarter Third X.X% to XXXX. sales billion increased Adjusting quarter for for slightly exchange third period $X.X net of a the foreign sales third quarter on of same the impact, reported net increased basis compared XXXX.

As quarter. net of the currency $X.X million John year-over-year of net of Adjusted diluted $X.XX the or per share $X.XX related said of for approximately The the reported above approximately income currency share. local approximately result share. fluctuations to per of headwind in range This earlier, end represented We quarter. excluding our $XX.X grew sales China, of $X.XX quarter. on $X.XX for results expenses China guidance million X.X% of growth program included impact or per third was a the third $X.XX the high earnings

Mexico, and impact foreign mix prior by basis year for of The favorable XX.X% on margin approximately now the the driven in incremental to the longer of the primarily be increases. unfavorable tariff Mexico the no period. fourth of in third will quarter. quarter partially the was fluctuations, in gross decreased impact profit Note currency compared that a drag by discontinued the gross price tariff Reported country incremental decrease XXX beginning offset but points by our

XX.X% of quarter as net respectively. sales were Third a and reported and adjusted XXXX XX.X%, SG&A percentage

the net adjusted Excluding SG&A points basis as approximately to XX.X%, a XXXX. sales member percentage XX was quarter of of China favorable payments, third

true-up quarter to XX.X% than was tax XX.X% effective favorable quarter. our approximately expectations, rate the country to year-to-date effective third full and the of mix adjusted tax reported rate impact magnified due on our within rate which was lower our effective due was primarily year expectations, the Our tax

Now, share point the for X.X% guidance sales updated. X.X% updated has to let guidance been a year XXXX also been range XXXX. Net has to me for volume Worldwide for of updated growth. guidance full

expecting basis currency well down foreign XXX X.X% range as mix from fluctuation. and of points to approximately now point range adjustments are the a reflective We X.X%. up volume of This country as headwind is

diluted EPS expected diluted to versus $X.XX $X.XX. a to the $X.XX is currency $X.XX year is headwind and a prior $X.XX Full be EPS in adjusted reported to reported and of estimated in to approximately year impact year, be diluted of include of adjusted now Venezuela. of range a guidance Full excluding range EPS

basis decreased XX.X% and to to XX.X% XX% adjusted effective an guidance Our rate tax to reported basis. XX% to on a on

of range reported are fourth range to to points diluted adjusted X.X% X.X% EPS we down of EPS be is versus in X.X% a estimated For to adjusted to approximately fourth be volume XXXX, of projected a $X.XX of in $X.XX. of XXXX. the quarter includes in X.X%. estimate Net a $X.XX sales a currency to EPS include quarter headwind point of up of which in growth year. basis to currency the a $X.XX headwind expected range Fourth and range XXX compared to prior the diluted be diluted $X.XX and Reported of quarter

from range related to tax currency. points worldwide of to of are any equity the to $X.XX impact XXXX. on X% to excess $X.XX currency EPS guidance X% initial Moving X% EPS Adjusted program, growth guidance $X.XX excludes includes sales with Reported Worldwide ahead constant range currency grow currency year X.X% projected of a repurchases basis and and expected reported headwind and in range is volume reported basis, of China is in for in X% a sales on which points between of compared XXXX. $X.XX net with a $X.XX to X.X% to share XXXX exercises. guidance growth. our range full of future to in EPS headwind estimated for net be EPS the approximately diluted a to to include $X.XX. year diluted to Full the are guidance XXX adjusted a basis expenses of due a $X.XX. a EPS Constant of diluted benefits adjusted

S&P Ratings from authorization. a During debt EBITDA. share and have hand target $XXX our Global B+ in in Separately, We ratio the on paid to debt now notes assigned off billion times cash cash to credit we below Herbalife raised stable approximately quarter, our rating repurchase gross currently and third outlook. $XXX its of million $X.X are convertible our and of leverage from million Nutrition of BB- issuer on three

the remarks. questions. This prepared concludes for up Operator, line our please open

Operator

our from And question Lane Instructions]. first [Operator Research. Lane Doug of comes

Doug Lane

afternoon Good and new everybody. A Dr. on And positions. congrats Hi. your Yes. John

John Agwunobi

Thank you.

John DeSimone

Thanks Doug.

Doug Lane

upside. softer U.S. to better a point on little may I outlook in Just year and The improving. bit for little have a show the you is starting line, thought on on. next outlook China I EPS quarter continues the bit volume expected. than the it is number here. quarter, third I It the the is to fourth than spot seems But be mean, mentioned

So just there wondering, how be initiatives to that currency of going that impacting margins forward? is versus much I spending going was are are

Alex Amezquita

Hi Doug. question. Thanks for the

is is So currency up full of XXXX, by XXXX. through of the of through headwind mix. currency that we EPS about And again to into beat, XXXX $X.XX being really adjusted as currency That's the balance $X.XX impacted is The year. about our pretty lion's of making it rowing of anticipated significantly and country impacted share by XXXX. go being $X.XX for is

So the continues time. been now having and we guidance. are the stronger that's same EPS sort story a for on material again, to some get in we impact dollar that stronger The of have

Doug Lane

there So very are real other then going is as level, no just as than far the concerned. high initiatives Mexican spending through anniversarying, bubbles the VAT P&L

Alex Amezquita

you basis, be XXXX. XXXX at to XXXX. constant operating going will if XXXX our margin flat currency And be look is No. on to a to flat

we are fact, our the material are operating course. marketing change, managing And normal in some within plan margin. those of absorbing expenses and you -- there China referenced the the So anything isn't we that to

Doug Lane

CapEx? then lot looking I year lower of are $X.XX are number. the looking number, from sounds like to you Is $X.XX going getting were to the projects at the it? that of coming are but to and into helpful. sort not than going the range think have wanted you will outlook on you million and you get I And the CapEx spending is your wanting the to That's of really and be $X.XX initial a list that speaking look in XXXX so $X.XX to it big you at CapEx million them. another to coming that just back know, to the for million that in to on out Okay. what's million, year, below with you way outside just Or a

Alex Amezquita

Yes. focus. I was say a XXXX of would year really

So we we benchmark. began our our preliminary then number. for may that We guidance, net about spend sales. or as the X% landscape the and normal and with as change, year, as And you the year progresses know, change as of around priorities focus guide typically, to

our this focused a So to on resources a where smaller high had use projects to on was we of concentrate really effort year priority those. really number

we that we look As unfold. back to and as placeholder that go XXXX, as to will we the number again we progresses refine year bandwidth

Doug Lane

Alex. Thanks Okay.

Alex Amezquita

may everyone our make submissions. our and just And mention, just aware that some ability available. filers wanted is noticed make to you have experiencing I that yet I to XX-Q should which technical difficulties not causing generally EDGAR is other is

possible. not their up that working until EDGAR through XX-Q as can So tomorrow show we may morning issues. timely EDGAR to are with as provided get But it filed sort

general So just a FYI.

Operator

you. Thank

Karru comes from question of next Jefferies. Our Martinson

Karru Martinson

good and sorry. afternoon, morning Good

how of pipeline in on lost China I saw, improvement think the the guys XXX-day of customers? two we the with you essentially? mean slowdown, building terms you out that are I cohorts In progressing

John DeSimone

Yes.

which But lost sequential you was trends at question. saw will you this we improvement the about, John. game. the a that think what campaign, I talking improvement, from think XXX-day meaningful reps year. during a pipeline a the last long-term sequential is it's look versus that are I So new is When that's

are with we trends We in China. happy the are seeing

actually expect that in you trends will QX. point We volume will on improve QX's and QX it grow

that customers nutrition the that And WeChat for pick to a we to that's and there platform expands in through up quarter reps are other we But their meetings on nutrition know, and you announced. as city and deal of additional going an expert channel which in basically There year, sell December As pop the higher we the city big think service product a our Tencent we portfolio. in of was to to and pop-up last was club meeting was club. initiatives provides e-commerce going have the XX XX on China out expect an it the sales the announced amount lot XX of fourth providers the experience experience by meaningful up the

And amount expect higher meetings XX which announced attendees have versus last kick-off year. of quite additional to attendance, in we meaningful we December,

XX a have going city We pop-up out.

fourth not club can as going nutrition a a it quarter. You think of experience, out although city club. there But pop-up nutrition is like in a it's almost XX experience the

you see expect into positive continue are I we where the trends future. So will today versus

Karru Martinson

store And the realize initiative. very Tencent from feedback is partnership, What WeChat has and the I reps field? since you early Okay. your this initial the the launched on been

John DeSimone

very course, with Well, positive. levels anecdotally, We October some of it's launched XX set.

importantly, it's really is early. But I think this solved few issues. a So

One issues to sales directly for which time company distributors ability company meeting. order of from over is the on the the reliant makes less customers and the reps the

where instantly that order is open selling the product is get There paid customers also called Instapay Another can component company. portfolio sales along if with their on that, some reps beyond directly goes product. a from direct thing transaction

their So it's more pockets income immediately. into

that's big So deal. another

So anecdotally, early. positive. the From a it's data very has feedback standpoint, been

Karru Martinson

from And that? of the that Mexico just see from any to Is tariffs lastly, quarter inventory a that going kind should housekeeping a the in of item. the million fourth about there in There we $X roll-off. is be drag

Alex Amezquita

are those in tariffs inventory. Mexico incremental rolled now out No, of

So to be there impact should QX. no

Karru Martinson

much appreciate Thank you very it. I guys.

Operator

Kite from comes question from Research. And Beth Instructions]. [Operator Citi next your

Beth Kite

And Dr. appointment. to new you. everyone. well Agwunobi. And on am happy as John so I congratulations for the Hi

John Agwunobi

Beth. Thanks

John DeSimone

Beth. you Thank

Beth Kite

for lot in What markets and in thinking and as pricing. sort of in as the to customers fitness there knowing got we and currency I comps get around also in a XXXX distributors start, are for to can XXXX. going like local certain about I X.X% or sales would But different And understand, us of are like some that in then great if the your could, help you Absolutely. but end better just you might elements markets, it's tough as you to of the result growth thinking can, technology because get range To there extent midpoint, innovation, drivers. pull Momentum range? sports a those about think I product I number regions. and maybe on of growth out would like just sort to is of about think, of John, alluded both India midpoint? that traditional end in others. line, the right Indonesia, pretty you sort And higher is what you at end the the lower for the

Alex Amezquita

Right.

volume midpoint is constant of which midpoint our of about, our So X.X%. currency X% to guidance a of guidance net about the sales about translates basis, on a

an there rest mix, just So going from volume the to currency the the and is portfolio. mix be the volume that sales on our of the China to based sheer going from and growth primarily leverage to be, is from increase outpacing of comes net just just mix there constant

XXXX, in coming base. lower a is of Obviously off China

XXXX, the rest would recovery anticipate we in So continue of the we exceeding portfolio. as exceeding we growth the China as into go probably this

points. net currency effect. will sales is headwind XXX constant So basis that the anticipating currency that And come we then from that about are leverage

X% the sales there. the getting is where growth. pricing for in the that as of net on performance currency benefits. year-over-year. we pricing, Generally to factored benefit get headwinds Pricing most are part, But far quarter-after-quarter, same are we have those volume outpaced about is we So about

Beth Kite

its can, if was terms meetings And that in of sales us to you traditional And refresh then, you into you questions ramp of of have am more can we in a actually got where program? terms also, you a similar the hoping two of China helpful haven't help used growth, can we you. though I Thank One, China Perfect. scenario your this grant speaking the we us country? bit really are there. of understand sales the that stand than in money yet quarter. little you where impact

you as and So you there? using XXXX and much plan and how how end you money XXXX, just when curious, might for be

John DeSimone

on will less question and July was I year. October of for year, was XXth anniversary October which to the on than national meetings the the holiday But relative the last was the Sure. the were take around they we quantity last call. attendees last were actually meetings. little very republic cautious XX% actually on of of a in and

last call. performance So based will we see we what the of was acceleration quarter goes. not November meetings an announced on But beyond how our in on quarter's

Alex Amezquita

And on the of China you this growth We in past million fund, an additional grants are $X correct. did receive quarter.

branding, as that spent funds articulated this us, here in about We $X that things same those all we $XXX under technology, So gives before. will move on remaining. million remaining, funds terms on just we the of million quarter and have continue spend to

John DeSimone

up it year, year wrap think a this ramp versus I So a what next meaningful is we up. spent

Beth Kite

regarding you Obviously FCPA that is noted you know Perfect. Thanks. the on we are of questions, issue Q anything the And with given with guess see final, can the couple appreciate understanding cited that in the then that I report. yet, my I EDGAR. then I us But share this a also I with that there, related. quarterly And And the can't was cash Q? balance. also

a quarter? is you of anything event do fourth likely the in that buybacks is nice for to infer cash got any be have a to there So assumption buybacks? there in able flow. you Might XXXX Or terms of,

Alex Amezquita

are related. those Well,

fact there discussion that the no with material than other the that So I regulatory our in has XX-Q say, continuing change to are don't first the disclosure we the will and I been know have FCPA disclosure we but indicated bodies. you

change as that today And you delta buy back that respect between we doesn't really get months quarter in result, that. last to three the that, be when position ago the are check with So this a quarter. activity. where will and But we that than were

Beth Kite

you right. Thank so much. all All Perfect.

Operator

Wissink question next Stephanie comes our And of Jefferies. from

Sebastian Barbero

Barbero Sebastian It's for Hi. Steph.

to Anything to out you Mexico. see Just a the here? six three next one in on months? couple call market the moving of How do questions,

John DeSimone

this comps question. reminder, good And and really the seen was to Mexico. down as up pretty activity and a in QX lower Both a It's of and different just driven Mexico, X% we difficult have X-year engagement up improved actually QX slight The get X%. QX. Yes. year in and QX less already. stack engagement, versus in the in Obviously have QX issues lot actually, QX X%. that was year QX improvement is we have got we was down a new just by X% fix last

So some are of know over Extravaganzas I We at I where in in is improvement two see people different QX think you the excitement saw a will Mexico. Extravaganzas. in a in sequential of lot there lot QX. we

think at I I time. seen level a is have strongest motion, the long in leadership the engagement

can I we build of off So expect that that.

Sebastian Barbero

it. Got Growth Thanks. see America. very even this against some you strong more do is strong North on And still sustainable? How comps. one as

John DeSimone

doing Both I DCs is are well. look, Well, well think in nutrition expanding. the U.S. are doing really club really

financial just are metrics. metrics non-financial sustainability. built The strong. It's not the So around

their had the record least future, the our that yields see to We various that's U.S. their meeting expect continue expectation. attendance at at Extravaganza I and So for strong LDWs. numbers

I the plan marketing It moving last It was the record-setting. up strong. record-setting at it. is be might so And looked

growth all sustainable So in U.S. signs point to still the

Sebastian Barbero

it. you. Got Thank

Operator

remarks. turn Johnson now to have like questions this further closing no we time. for back to call I at the And Michael would

Michael Johnson

really back, I this investor Get am. to Get in my call company. succession When appreciate as I goal where on penultimate the seat my the interesting I up. be being everybody. came It's call. Thanks S in done. labeled three I sales for

checkbox So one.

well pretty doing are quarter. We this

operating absolutely We significant The XXX-day in us bit amount pretty both there. our this we way year trade that impact income currency a very got and year, have for was on to grow the severe. those had the it. the finding We way to are China headwinds work had more strong. out of hamstrung room a know in scenarios We issue but of it

knows company. it. team this check. are So as Agwunobi better. team think we Board are don't done inside any John sales could up, Succession, frankly John and have a dream DeSimone, I The

it. know know Employees too. it distributors Our

So I to gentlemen generation this significant Herbalife. an pleased these I be you couldn't think investor and the of investor in company, as introduce to am as today more two I a next

is Next will Mark and embraced The celebrate success of distributor this it do years philosophy company Herbalife. with so. we this founded we of company expanded because year, mentality. Hughes and it, to we have first XX the continue

us So shareholders my of because congratulations hats great plan Congratulations all moving as off, you. to succession have forward. to we a gentlemen

for call So thank the all us. much. being very you Thanks with on

you We will quarter. see next

Operator

and today's call. conclude this gentlemen, does Ladies conference

disconnect. You Thank may for your participation. now you

Herbalife Nutrition (HLF) 29 Oct 192019 Q3 Earnings call transcript