Early in January, the firm announced that CEO Richard Goudis will be resigning. Those close to the matter say that the departure is a result of comments Goudis made before he became chief executive. The company did not release any details about the exact comments but said at the time that they were unrelated to Herbalife’s financial reporting.
This company has been under fire for years after being called a pyramid scheme by Pershing Square’s Bill Ackman, with none other than Carl Icahn coming to Herbalife’s aid. Since then, Ackman has stopped his bet against Herbalife, and Icahn has been selling his shares and taking a reduced stake in the firm.
Michael O. Johnson, the Herbalife’s executive chair, who led the company as its CEO from 2003 to 2017, will reassume the role of CEO on an interim basis following the resignation of Goudis. The board of directors expects to select the permanent CEO from the company’s senior leadership team.
At the same time, Herbalife announced preliminary volume point results for the fourth quarter 2018, which were up 11.6% worldwide year over year, and reaffirmed its initial full-year 2019 guidance as announced on October 30, 2018.
Over the past 52 weeks, Herbalife has outperformed the broad markets, with the stock up about 36%. However, in just 2019 alone, the stock is down closer to 4%.
Shares of Herbalife were last seen up about 1% at $57.44 on Tuesday, in a 52-week range of $41.28 to $61.77 and with a consensus price target of $62.60.