USANA Health Sciences (USNA)
misled shareholders in their first quarter earnings on May 5, 2015 by cherry picking those markets with an increase in sales while neglecting to report any information on markets that decreased such
as Hong Kong. For example, USANA stated “Net sales in
Greater China increased 43.0% year-over-year due to growth in
Mainland China. Specifically, local currency sales in Mainland China
increased 121% year-over year” What USANA didn't tell you in their earnings release was the fact that Hong Kong sales declined by about $15 million or 63%!
USANA only compared year-over-year results. However, USANA is NOT a seasonal stock. If we look at the earnings result quarter-over-quarter, here is what it would look like: Net Sales in Greater China decreased 2.6% quarter-over-quarter due
to a declining market in Hong Kong. Specifically, sales in Hong Kong
declined $10.2 million or 54.5% quarter-over-quarter. This was
slightly offset by growth in mainland China where sales increased by $7.5 million or 9.8% quarter-over-quarter.
In case you missed it - Hong Kong's decrease outweighs mainland China's increase quarter-over-quarter.
Putting this into perspective and why Hong Kong's numbers are significant:
Q1 2015 Hong Kong sales estimated around $8,529,000
Q1 2013 Hong Kong sales were $41,597,000
would that be because China market is open? and same as other country is also open recenlty that affects the HK sales?
ReplyDeleteIt is because USANA's Hong Kong sales were primarily to residents from mainland China who participated in a multilevel marketing company even though it is illegal in mainland China. USANA is now simply recording the same sales now as Babycare sales rather than Hong Kong USANA sales. The sales we see in Hong Kong today are what it really was over the last 8 years. This is a half billion dollar fraud that took place in mainland China as its citizens were participating in what China deems a pyramid scheme.
DeleteSo what about this guy. No nonsense. What he mentioned applies to any entrepreneurship. He made it. You can try digging dirt on him I dare ya.
ReplyDeletehttp://soomin-kim. com/
Soonmin Kim, before posting anything about MLM, show your income first.
Deletehe left usana
DeleteWell, congratulations to all those who are earning by the millions in Philippine pesos of accumulated earnings starting from day 1 that they joined Usana. My financial freedom started when I stopped my auto orders. Without auto orders monthly, I may not get commissions from Usana but at least, I do not have to borrow money just to become commissions eligible, And, I do not have a long list of borrowers to collect from. No more pressuring of downlines to purchase. No more hard selling to friends to join the business. With the constant auto order, I had to get back my capital by selling and who is benefitting when you have to dive deep down just to dispose the products but those in the higher up? No more bondage of paying for auto orders please.
DeleteIn school some people Fail because they are not focusing in lessons... Same In Business...
DeleteSome People even don't Like Shakeys! :)
What about people who fail in a pyramid scheme? Did they not focus? Did they not try hard enough? Were they lazy?
DeleteMultilevel marketing is a legitimate business strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales.
ReplyDeleteCorrection - Multilevel marketing is a marketing scheme that some companies use to encourage their distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' PURCHASES.
DeleteMajor difference. MLM companies sell overpriced product that have no retail demand and is primarily sold to its distributors rather than retail customers. Direct selling companies sell products to retail customers as long as their is a real demand for the product. Direct selling companies with product but no demand resort to multilevel marketing schemes instead.
More Correction - Multilevel marketing is a marketing scheme that some companies use to encourage their distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' PURCHASES AND SALES
DeleteMLM companies sell overpriced product that have no retail demand and is primarily sold to its distributors rather than retail customers. Direct selling companies sell products to retail customers as long as their is a real demand for the product. Direct selling companies with product but no demand resort to multilevel marketing schemes instead.
Correction 1: Overprice is subjective. Should call it expensive. ie. real Estate in NYC and San Francison are overprice, but people still buy them. So to those ppl who buy, they think it's expensive or it's the norm. If it's overprice, people will not buy them constantly.
Correction 2: Expensive product that does have retail demand. I've seen it in small pharmacies on the shelf along with others supplements and they do get sold when I ask them. Owner is probably a distributor selling it and not recruiting. (points == money, remember).
Correction 3: There is a thing called preferred customers who are not distributors.
Correction 4: Shoe Umbrellas, or Aluminum wallets, etc and many products shown on "as seen on tv" are dying products and end up having no demand. I don't see them going into MLM route. Plus how do you know if the product has no demand unless you test it out first.
MLM Matrix Plan is a multilevel marketing compensation plan which allows distributors to earn money by complete own Matrix (n X n matrix).
ReplyDeleteHello Watchdog!
ReplyDeleteHave you ran out of things to say about this scam? Or they are better at masking it?
I think you are losing your credibility ..and your war against usanacr-p.
ReplyDeleteI don't see a 'decline'. They are having record sales amount.
http://phx.corporate-ir.net/phoenix.zhtml?c=95179&p=irol-newsArticle&ID=2075666
http://www.nasdaq.com/earnings/report/usna
Their stock is now $150.. 3x the amount since 2013. It just jump 28 dollars today.
What are you smoking.
But if usana stock goes down like crazy, you will definitely publish that..but now it's up like 3x since 2 years ago, but I don't see you publishing that. So you are also cherrypicking.
ReplyDeleteCHERRYPICKER!!!
ReplyDelete