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All Herbalife24 products are tested by the NSF, an independent laboratory. Herbalife Product Catalog. Log in Remember me. Lost your password? Description Reviews 0 Herbalife24 Prepare Herbalife24 Prepare supports blood flow to working muscles. Prepare contains about as much caffeine as a cup of coffee. Nitric oxide precursor system helps achieve peak performance and creatine supports the fast-twitch muscle contraction required for explosive athletic movement.
Weight lifters seeking peak performance , fitness enthusiasts looking for an enhanced workout, and endurance athletes preparing for aerobic training sessions will feel the benefits of Prepare. Exclusively endorsed by Lou Ignarro, Ph. We continue to see strength in our U. While we continue to closely monitor pandemic conditions, we kicked off a series of in-person distributor events in October, and are encouraged by the initial attendance and the excitement in the channel as we begin to once again meet face to face.
During the second quarter earnings call, we outlined the actions that we're taking in the market. Overall, we believe our strategic initiatives, which include a focus on our digital transformation and daily consumption at Nutrition Clubs, will improve the number of new entrants joining the business and create a more active base of service providers in the long term. Although the impact of these initiatives is yet to be seen in our top line results, we remain confident, and expect these strategies will benefit our sales performance over time.
Turning to guidance. For the full year , we are reiterating the outlook that we provided in September for the top and bottom line. Alex will take you through our guidance in a bit more detail shortly. In line with many of our peers in the direct selling industry as well as mid-cap food and nutrition companies, we expect to provide guidance for full year in February as part of the Q4 earnings release.
We anticipate this to be our go-forward cadence, which will allow time for additional data to flow through our forecasting models. Although the unpredictable and unprecedented nature of the pandemic and its economic impacts have resulted in near-term variability in our business, we remain firmly confident in the long-term growth strategy that we outlined in detail at our Investor Day. One of the initiatives that we outlined at Investor Day to accomplish this growth was new product innovation.
And over the past several years, we have strategically built out our Herbalife24 sports nutrition brand through new products and global expansion. We anticipate new products will be a long-term growth driver in our business, and accelerating new product development will be critical. Currently, products introduced in the prior three years represent only We hope that you were able to attend our Investor Day where we outlined additional aspects of our growth strategy, and shared our vision on the future of the company.
For any of you that were unable to join, a full replay of the event is currently live on our Investor Relations website. Thank you, John. We had year-over-year net sales growth in three of our five largest markets, consisting of the U.
Currency was a tailwind to net sales in the quarter, representing a benefit of approximately basis points, excluding Venezuela. Reported gross margin for the third quarter of The decrease was largely driven by unfavorable country mix, primarily from China, representing a smaller portion of our overall company sales. The decreases were largely offset by the impact of routine price increases. Our adjusted diluted EPS and EBITDA figures continue to exclude items we consider to be outside of normal company operations and provide measures we believe will be useful to investors when analyzing period-over-period comparisons of our results.
This quarter, you will notice we have a new exclusion item for onetime expenses related to transformation initiatives. Management has begun efforts to design and build to reorganize both front and back office operations. We continue to assess scope, and will update investors in February.
We are reiterating our fiscal year guidance for the top and bottom line. This calls for net sales growth of 4. Currency remains a tailwind, and we project an approximate basis points tailwind due to currency for the full year compared to the expected basis points benefit from a quarter ago.
As John referenced, we are expecting to provide guidance for on next quarter's earnings call. We will also be monitoring potential inflationary impacts on our business.
Like many other companies, we have started to observe higher-than-usual cost increases in our supply chain with respect to raw materials, shipping costs and labor at our manufacturing facilities.
Now we will turn to our cash position, capital structure and our share repurchase activity. During the third quarter, our cash flow was negatively impacted by timing on several working capital accounts. Given this unfavorable timing, we no longer anticipate operating cash flow to be higher in than However, we expect these items to net out in , and results in a relatively more favorable cash flow environment next year.
Please go ahead. Hey, everyone. This is Chris Neamonitis on for Steph. So the increase in average sales leaders in the quarter as a strong positive. Can you maybe talk about what levers you look to, specifically in the near term to sort of reinvigorate those productivity levels among the existing base, and then for newer sales leaders to maybe kind of ramp up their productivity?
I know you talked about new product rollouts, but given current operating dynamics, does that inform timing when you launch those new products? This is John. I'll take that. First of all, the timing is impacted based around generally events where we can promote the new product and educate distributors of new products.
So it's not impacted based on activity levels of distributors. To go back to your earlier question, the thing that we most look for would be new member activity underneath these active sales leaders. They are a customer acquisition vehicle.
There's a couple of things we look to for them. One is engagement and generation of new customers, and second is productivity. So those are the metrics that we will look at when it comes to -- and that's just broad-based.
When it comes to success of new sales leaders, it really is about activity in their first 90 days. That's what becomes the most predictive element of their success long term. Got it. And then I think you guys mentioned some routine price increases in the quarter. But I'm just wondering, if inflation has picked up. Is there any elevated attention on taking up pricing where you can?
So just really thinking about elevated costs in transport, labor and packaging. If you're not planning on flexing your pricing power in the kind of the near term, could you give us a little more color on how you think about the mechanics behind that?
So our pricing policy is consistent, whether it's in this environment for over the years. And what that is, is pricing increases in line with local inflation around the world. So to the extent that inflation escalates in any one particular market, then we'll be taking pricing commensurate to that.. Let me add that -- this is John. Let me just add that, obviously, this year has got a little bit of an unusual feel to it in terms of the amount of inflation in the countries it's hitting, especially on the supply chain side.
So Alex mentioned in his opening comments, just some increased cost on the on the supply chain side and how much of that -- we'll have some pricing flexibility on the front end to cover some of that, whether we get all of it or not, we're still working through.
My first question has to do with the guidance for the full year. That's a crazy wide range for the fourth quarter, the implied guide for the fourth quarter. So what's contributing to that? Or is it uncertainty over any particular market? Just -- and any directional sense you think you're going to come in at the lower and higher end of that range for the full year?
Any more color on the fourth quarter would be great. Wendy, I'll take that. So the guidance range is exactly that. It is wider than we normally would have at this time of the year. And your first comment hit the nail on the head. It is the impact of the pandemic around the world either directly as it relates to Southeast Asia, for example, or indirectly as it influences behavior in markets like North America and Europe.
It's just providing a more challenging environment to forecast than we normally have. And so the wideness in the range reflects that ability for us to kind of bake in some of that unpredictability as it relates to the environment. Fair enough. I get it. And just -- I know you don't want to comment on , but still just sort of given what we've seen, certainly in the third quarter, I mean your comps are -- they're still tough, obviously, in the first half of next year.
And I'm just wondering if there's any sort of directional guidance you think year-over-year growth might still be negative in the first and second quarter.
Or any sort of directional sense even just at the beginning of that you could offer? No, we're working through So obviously, I can't really comment on that. What I can comment on is in the guidance implied, and you can just do the math. You're having a Q4 comp that for most of the range is better, sequentially, than Q3.
So we do anticipate as we move on to have each passing quarter to have better and better comps. Now where that will end in ? That's the work that we're doing, and we'll come back to you in February with a look on that. And just again, to that point and not to drill at home too close, but like the U. It's fabulous. But I'm just wondering how much that might unravel. So the question specifically is in the September quarter, can you give us a sense for just in the North America market, sort of July, August, September, what the sequential -- or what the progression was month-to-month so that we can have a sense just for the North America market, what the forest order might look like.
I mean this really varies from market-to-market. So I'm not going to go into those -- I don't know if it's going to be helpful to go on a market-by-market basis. I mean, generally speaking, August was -- tending from a volume point perspective, from a comp perspective was about the low point that we were at.
Now how that's going to translate on a market-by-market basis really varies. What I do know is kind of the comment that I just hit on was that generally for the company, Q4 is going to be better from a comp's perspective than Q3.
That's our expectation. And on a market-by-market basis, we're just going to have to see how it goes. Totally fair. And then if I can sneak in one last one, and I apologize, but there obviously is a lot going on.
Alex, one of the things you talked about during the pandemic was the fact that more distributors and more customers were having the product shipped direct to their homes. They work on to the Nutrition Clubs as much. And I know you mentioned in the prepared comments that more people were going out to the clubs.
But is there anything more -- and I'm thinking about the U. Is there anything more you can say about that in terms of maybe the percentage of the business that's still being shipped direct to consumers? And obviously, the reason I ask is the freight environment. And I'm just wondering how much higher your costs are. What your service levels are? Are there charges being put on the business? Are people ordering stuff and not getting it for weeks on end, just because the U.
So maybe if you could just give us a little bit more color on that dynamic. No problem. A lot of what you said still holds true. So home delivery as a company, as a -- in totality, there is still a higher percentage of that than there was historically pre pandemic. And you'll see that reflected in our COGS. Our COGS is still at levels that are probably a point below normal run rate just as a result of that phenomenon.
Now one slight edit. It's not necessarily that it's distributor is not going to Nutrition Clubs in home delivery. But in most markets, what we have are these sales centers. Oftentimes, there's other attributes like education, etc, that they will get at those sales centers.
So it's really more of that activity. Our Nutrition Clubs have -- the distributors out there have figured out other ways to solve for in-person challenges in those particular markets. The other comment related to freight, yes, we are seeing that -- those challenges on the horizon. It hasn't materially impacted Q3. But we do see that it's going to start to have an impact into Q4 and beyond.
So we're looking at ways to solve those types of inflationary pressures as we think of the cost structure going forward. And if I could just add, just to be -- because you asked this question, relative to other companies. We're not seeing supply issues, customers are getting their product, distributors are getting their product. It really is a cost -- this cost pressure more than there is out-of-stock pressure.
Hi everyone. Just kind of a follow-up to the line of discussion earlier. I know you're not guiding for But looking forward to next year, conceptually, can you give us your latest thoughts around the favorability in metrics in second half of next year versus second half of '21?
In other words, why -- I guess what I'm trying to get at is why wouldn't the business inflect positively year-over-year in second half of next year?
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