LifeVantage Corp., the company that now sponsors the jerseys of Real Salt Lake, reported a decline Thursday in its fiscal second quarter revenue as it lowered its financial expectations for the year.
The company, whose main product is an anti-aging nutritional supplement, said its revenue was $51.5 million for the quarter that ended Dec. 31, a decline of nearly $2 million,
Nu Skin delays financial release
Nu Skin Enterprises said this week it was delaying the release of its fourth-quarter and annual financial results because of investigations into the company’s business practices in China.
Chief Executive Truman Hunt said in a news release that results would be available later this month. The company also is facing various lawsuits by shareholders over the investigations in China and allegations in a major newspaper that the company may be violating laws against operating pyramid schemes.
The disappointing numbers caused it to lower its financial guidance for the fiscal year from a range of $225 million-$235 million to $205 million-$220 million.
RSL, Utah’s Major League Soccer team, announced in November that LifeVantage had bought the rights to have its name on RSL jerseys replacing XanGo. Then less than a month later, LifeVantage terminated top distributor Jason Domingo and sued him for allegedly disparaging the company’s management.
Since mid-July, shares of the publicly traded company have lost 50 percent of their value. Shares closed up 2 cents Thursday, before the earnings release, to finish the day at $1.32.
Company officials projected a sense of urgency during a conference call that followed the earnings release.
"Let me be clear," President and Chief Executive Doug Robinson told analysts and others on the call, "I’m still not pleased with our top-line results."
Overall revenue was driven down by declining sales in Japan that offset growth in the Americas and Hong Kong. Net income for the second fiscal quarter was $3.3 million, or 3 cents a share, which improved over no per share profit of a year ago when the company had a major product recall.
To counter the disappointing results and declining share price, LifeVantage has hired new top managers and announced new products and a marketing push to attract and excite its corps of independent distributors.
"We must increase the sizzle, the sexiness, the cool and the wow factors of LifeVantage," said newly hired Chief Sales Officer David Phelps, who said the company would seek to attract more women and millennials, the generation of people now 18 to 30 years old.
New Chief Science Officer Shawn Talbott said the company would launch a new anti-aging product for skin.
Pressed by an analyst during the call, Robinson said that, based on the new hires and new initiatives, he predicted that calendar year 2014 would be the company’s best.
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