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    Chasen Bender • Citigroup

    Chasen Bender's questions to Herbalife Ltd (HLF) leadership

    Chasen Bender's questions to Herbalife Ltd (HLF) leadership • Q2 2025

    Question

    Chasen Bender from Citi inquired about the monetization strategy for the Protocol app upon its commercial release, the unit economics of the bundled healthy lifespan supplement, and the sales contribution assumed in Q4 guidance. He also asked about Herbalife's pricing strategy and competitive positioning amidst consumer value-seeking behavior.

    Answer

    CEO Stephan Gratziani explained that Protocol is designed both as a value-add tool to support the existing $5 billion business and as a way to attract a new, more digitally-oriented customer segment. CFO John DeSimone noted the product's economic model is slightly different due to its subscription basis and earn base, but not materially so. He confirmed that very little sales contribution from Protocol is included in the Q4 guidance, viewing it mostly as upside. Regarding pricing, DeSimone stated the strategy is to remain commensurate with the market, and the company has not seen a negative impact on volume trends from its price increases.

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    Chasen Bender's questions to Herbalife Ltd (HLF) leadership • Q1 2025

    Question

    Chasen Bender asked about the monetization strategy and ROI for the new Pro2col platform, its potential impact on U.S. Nutrition Club conversions, recent weakness in North America KPIs, and the rationale for the reduced full-year constant currency sales guidance.

    Answer

    President and incoming CEO Stephan Gratziani explained that while it's early, Pro2col is expected to drive conversions from the nearly 4 million U.S. Nutrition Club consumers. CFO John DeSimone detailed three value components: app revenue, incremental product sales (personalized, Pro2col-specific, and core Herbalife), and new distributor/customer acquisition. DeSimone also noted that North America finished Q1 strong after a weak February and is expected to improve, and the guidance adjustment reflects Q1 performance and caution around China and parts of APAC.

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    Chasen Bender's questions to Herbalife Ltd (HLF) leadership • Q3 2024

    Question

    Chasen Bender asked about the distributor churn in North America, where active non-sales leaders remain below new additions, and sought confidence that the new distributor cohort will be more productive than those in the past.

    Answer

    President Stephan Gratziani acknowledged the need to work through residual attrition after a multi-year decline. He expressed confidence that new distributors will be more productive due to a strong focus on supporting proven and effective business models, citing a highly successful, high-productivity model in the UK as an example of what the company aims to replicate and teach globally.

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    Chasen Bender's questions to NU Skin Enterprises Inc (NUS) leadership

    Chasen Bender's questions to NU Skin Enterprises Inc (NUS) leadership • Q3 2024

    Question

    Chasen Bender of Citigroup inquired about the timeline for stabilizing the core Nu Skin business, the growth drivers for the Rhyz segment, and the reasons for persistent pressure on core gross margins despite cost-saving initiatives.

    Answer

    President and CEO Ryan Napierski stated that stabilizing the core business is a mid-to-long-term goal, with the immediate focus on operational efficiency. He attributed Rhyz's success to strategic investments like Mavely and insights from its omnichannel brands. Regarding profitability, both Napierski and CFO James Thomas explained that significant geographic mix shifts away from high-margin markets like China have masked the benefits of cost-cutting, but they anticipate 150-200 basis points of core gross margin improvement by the end of 2025 as more impactful SKUs are rationalized.

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