Herbalife Announces $250 Million Share Buyback Program

Herbalife Ltd. shares moved higher on Tuesday after the health and wellness company announced a new $250 million share repurchase program.

The company's board of directors authorized Herbalife to repurchase up to $250 million of its outstanding common stock over the next three years.

Herbalife Focuses on Shareholder Returns

Herbalife said the authorization reflects confidence in its business strategy, financial outlook, and ability to generate sustainable free cash flow.

"We believe our strong financial position and free cash flow generation provide significant flexibility to invest in our business, maintain a solid balance sheet, and return capital to shareholders," said Chief Financial Officer John DeSimone.

DeSimone added that the company believes its stock is attractively valued at current levels. As a result, the company views the buyback as a potential avenue to improve long-term shareholder returns.

The company plans to balance the buyback with investments in organic growth, strategic opportunities, and financial flexibility.

The company may execute the buyback through open market transactions, privately negotiated transactions, or accelerated share repurchase agreements. However, the authorization does not require Herbalife to purchase any shares. The company may also suspend, modify, or terminate the program at any time.

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Management to Attend Barclays Conference

Herbalife will also participate in the Barclays Global Consumer Conference on September 8 and September 9.

DeSimone, who will soon assume the role of interim Chief Executive Officer, will join incoming Chief Financial Officer Scott Schaefer and Investor Relations Head Samantha Holway for a fireside chat at 7:30 a.m. ET on September 9.

Price Action

HLF Price Action: Herbalife shares were up 2.67% at $12.71 at the time of writing on Tuesday.