Prioritizing health and fitness isn’t just the latest trend anymore. Today, it is a crucial part of many people’s lives.The business of wellness has already influenced major industries, like food and retail. Amazon’s (AMZN - Free Report) healthy food grocer Whole Foods and athletic wear brand Lululemon (LULU - Free Report) are two examples of companies that have capitalized on the transition to a more health-conscious consumer base.
Of course, companies that solely specialize in nutritional products and services have benefited greatly as well.
Here’s a look at 3 of these companies:
Weight Watchers International (WTW - Free Report)
Weight Watchers is one of the largest providers of weight loss and maintenance products and services in the world. Notably, Oprah Winfrey has been a vocal spokesperson and invested in the stock when it was trading for less than $7.
As of August 4, shares of Weight Watchers were trading at around $91 per share. The stock price has surged by more than 93% so far this year. Growth has been backed by the company’s strong subscription numbers as it becomes a highly trusted brand.
Further, Weight Watchers has been able to strategically evolve its image. The company now calls itself a wellness company instead of exclusively a weight loss firm. CEO Mindy Grossman has been clear about this initiative. “The vernacular of wellness has definitely evolved. The way we think about it is very holistic,” she told Forbes in an interview.
Weight Watchers is set to release its earnings on Monday, August 6. The Zacks Consensus Estimate is currently pegged at $0.90 earnings per share.
In its last quarterly report the company posted earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.06.
Another quarter of strong earnings would be a testament to Weight Watcher’s ability to take advantage of the strength of the wellness industry.
Herbalife Nutrition (HLF - Free Report)
Herbalife is a global network marketing company that develops and sells science-based nutrition solutions intended to support a healthy lifestyle. The company boasts a wide product portfolio, including targeted nutrition, energy, and fitness.
Recently, on Wednesday August 1, the company had a stellar second-quarter earnings report that drove the stock up 13%. For the year shares of HLF have risen over 70%.
In the second-quarter, Herbalife had net sales of nearly $1.3 billion, beating the Zacks Consensus Estimate and advancing nearly 12% year over year. The sales were backed by the company’s highest ever quarterly volume.
“Our top-line growth accelerated in the second quarter, reflecting the strength of our business model to provide solutions to many of today’s global nutrition and wellness megatrends,” CEO Rich Goudis stated in a press release.
These nutrition and wellness “megatrends” should continue to be profitable moving forward, making Herbalife investors very happy.
Vitamin Shoppe (VSI - Free Report)
Vitamin Shoppe is a specialty retailer of nutritional products, including vitamins, nutritional supplements, and herbs. Consumers can visit any store location for a personalized consultation with one of Vitamin Shoppe’s “Health Enthusiasts.”
However, unlike the previous two companies, Vitamin Shoppe’s focus on nutritional products hasn’t always been successful recently. Shares of VSI were priced in the $50 range five years ago, but are trading at around $8 now.
With that said, the company’s stock price has increased by 22% over the last month.This growth could be attributed to some recent moves, such as appointing new CEO Sharon Leite, who is set to officially take over on August 27.
Along with hiring a CEO, the company started a new program called “Launchpad.” The program is designed to “hunt for the next innovative wellness product they can help flourish and grow,” according to a press release.
It is unclear yet whether these moves will pay off, but Vitamin Shoppe could be poised for a turnaround. Look out for the company’s second-quarter earnings on August 8, which might indicate the future direction of the nutritional product retailer.
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