Herbalife shares slide as sales fall 12%


Herbalife posted mixed quarterly results Tuesday, as a stronger U.S. dollar contributed to sagging sales.

The nutrition company reported adjusted third-quarter earnings of $1.28 per share on $1.1 billion in revenue. Sales plunged 12 percent from the previous year, including foreign exchange rates, but rose 5 percent excluding currency effects.

Analysts expected Herbalife to post earnings of $1.05 per share on revenue of $1.15 billion, according to a Thomson Reuters consensus estimate.

Herbalife shares fell about 3 percent in extended trading.

Herbalife headquarters
Patrick Fallon | Bloomberg | Getty Images

Including currency effects, revenue fell from the previous year in all of Herbalife's geographic segments except China. Sales rose 24 percent in the market.

The company also raised its full-year earnings-per-share outlook to a range of $4.65 to $4.75. Wall Street expected the lower end of that range.

Herbalife has endured a slew of problems this year, including law enforcement questioning the legality of its business practices and its long-standing feud with Pershing Square Capital CEO Bill Ackman.

"I think that we have multiple regulators here that understand there's a problem," Ackman told CNBC on Sept. 11. "The last way we win here is just basic business deterioration. The company's business is declining double-digits in pretty much every market around the world, except for China."

"We are cooperating with these requests for information, remain confident in the integrity of our business practices and are hopeful Ackman's long-term campaign of distortion will be found to be illegal," a Herbalife spokesman told CNBC in April.

Herbalife's stock has soared over 13 percent in the last three months and over 35 percent in the last six, according to FactSet.

CNBC's Fred Imbert contributed to this report.