Direct selling companies in the health and wellness sector have been on a tear since the pandemic gripped the globe in 2020, and their sales momentum seemingly has carried over into 2021.
First-quarter results for many of the publicly traded multilevel marketers (MLMs) were similarly stellar to their 2020 numbers, with many breaking decades-old records for growth.
Direct sellers reporting record revenue in the first quarter of 2021 include Herbalife Nutrition Ltd. (NYSE: HLF), Nature’s Sunshine (Nasdaq: NATR), Nu Skin Enterprises Inc. (NYSE: NUS), and Medifast Inc. (NYSE: MED).
The pandemic—and its resulting consumer focus on health and wellness, as well as the market’s reliance on home-based buying and services—clearly benefitted the bottom lines of many multilevel marketing companies.
Herbalife cited increased demand for its nutrition products, as well as new consumer-facing technology used by the company’s independent distributors to interact with their customers, when they reported Q1 2021 net sales of $1.5 billion, an 18.9% increase compared to the first quarter of 2020. March worldwide net sales set a single-month, net sales record, Herbalife announced.
Nature’s Sunshine, which bills itself as a direct seller of high-quality herbal and nutritional products, said net sales increased 7% to a record $102.4 million in the first quarter of this year, which CEO Terrence Moorehead described…