LifeVantage, which is based in Salt Lake City, UT, sells a variety of dietary supplements and personal care products. The company began as a private company selling a lone herbal supplement called Protandim. After converting to an MLM operation more than a decade ago the company began a rise toward the $200 million marl in annual sales.
Lost momentum
Recently, however, the company has lost earnings momentum. In its year end financial statement for fiscal 2022, LifeVantage, now under the leadership of CEO Steve Fife, recorded $50.9 million in fourth quarter revenue, which represented a 7% year over year decline. The tumult in the world’s currency markets, which saw the US dollar gain appreciably in the past year, means that in constant currency terms the decline was closer to 4%.
For the full year the company recorded $206.4 million in revenue. By comparison, LifeVantage notched $220.2 million in top line revenue in fiscal 2022 and $233 million in 2021.
Fife said the company is investing significantly in digital platform upgrades. This has been a common feature of earnings reports from all of the MLMs active in the nutritional products space, as these companies seek ways to remain relevant in the rapidly evolving online sales landscape. Some of the freedom accorded to sellers in the new ‘social selling’ universe might serve to make the MLM structure no longer necessary.
Collagen to the rescue
In a call detailing the company’s earnings, Fife pointed toward a new liquid collagen product launch as a sign of hope for a future return to growth. The product launched in June and has been one of the most successful new product launches in company history, Fife said.
“Based on early results, we are very excited about the potential for our liquid collagen product to drive customer and distributor activity, as well as revenue growth,” Fife said. His remarks were taken from a transcript of the call posted on the site seekingalpha.com.
LifeVantage’s stock price has declined more or less in line with the drop in sales. The company’s shares traded for more than $16 a share in early 2020. The share price declined to $4 today.
