Wellness Evaluation

Friday, May 20, 2011

A Message from CEO Michael O. Johnson

To view this email as a web page, go here.| La Versión en Español

Herbalife® - Announcement - U.S.A. Edition

May 9, 2011

Dear President’s Team members,

Congratulations! We had a tremendous quarter – another record breaker, and capped off by the largest volume month ever in our 31-year history. Let me summarize a few key highlights for our first quarter 2011:

• Record volume points of 902.2 million – up almost 22 percent over 2010. All six of our regions had a double digit year over year increase in volume points.
• Record net sales of $795 million, a 29 percent increase
• Record earnings per share
• Our average active sales leaders grew 21 percent, which shows that the number of active supervisors and above has continued to grow for each of the last seven quarters.

Our full first quarter earnings release and our archived earnings call are on the investor relations section of Herbalife.com.

As I said the morning on our earnings call, the reason for our success this quarter, and every quarter, is very clear – it’s our products and our Distributors. The company invested more than $70 million of capital and additional operating expenditures in the first quarter as part of this year’s plan to invest approximately $250 million to further the growth of the business, and our Distributors are confident in the company, highly engaged, and creating tremendous momentum.

They are building sustainable businesses with long-term customers using the product every day. They’re holding more meetings than ever before, bringing more new people into the business and retaining them at a higher rate than ever. Our 2010 retention rate was 48.9 percent, which is up from 27 percent in 2002, and which we believe is the highest in our industry.

We also have the greatest employees, who all come to work every day ready to support our Distributors because at Herbalife, it’s always “Distributors First.” As Mark always said, “Teamwork makes the dream work.”

So, thank you Team Herbalife for another amazing quarter, and let’s keep our incredible momentum going. We still have so much opportunity, so many to help and inspire to lead healthier, more successful, and fulfilled lives.

We’re just getting started!

Michael O. Johnson


Michael O. Johnson
Chairman and Chief Executive Officer

Herbalife® - Nutrition for a better life.