Herbalife
This article was originally published in The Rose Sheet
Executive Summary
Russian market uncertainty "appears to be particularly challenging" and is expected to cause Herbalife's sales in the country to "decline substantially" in the second half of 1998, the direct marketer stated Sept. 1. Retail sales in Russia accounted for 7.8%, or $30.9 mil., of the firm's total sales for the second quarter ("The Rose Sheet" June 27, In Brief). Financial analysts Soloman Smith Barney estimated Herbalife could expect a 35% sales decline in Russia in the second half. Herbalife will take a $5 mil. non-recurring charge in the third quarter to increase "its accounting reserves against inventory and accounts receivable in anticipation of a sales decline and currency restrictions," the firm said. Despite the anticipated results, Herbalife said Russia remains an "attractive market over the long term"...