LifeVantage’s Flat Sales a Contributor to Management Change
February 5, 2015 Leave a comment
Lagging sales in Japan continue to handicap quarterly results for LifeVantage. On Wednesday the wellness company reported second quarter revenue of $48 million, down 8 percent over the prior year period. Outside the Japan market, LifeVantage saw a 1.6 increase over 2013 revenue.
The report comes two days after the resignation of LifeVantage President and CEO Doug Robinson, who led the company for nearly four years. Independent director Dave Manovich will lead the company as Executive Vice Chairman until the board names Robinson’s successor. Manovich, currently Managing Partner at private firm DNS Investments, has filled a string of executive roles at tech companies such as Apple Inc., Fujitsu America Inc. and @Road Inc.
“The board believes this change in our management is necessary as our growth has reached a plateau,” Gary Mauro, Chairman of the Board, told investors during the company’s earnings call. ”The company is not progressing in line with our business model of a growth-oriented, science-based network marketing company.”
In 2014, LifeVantage diversified its business with the AXIO line of healthy energy drinks and TrueScience skincare products. The company is looking to build momentum around its newest offerings, while also doubling down on its efforts to revive sales in Japan. LifeVantage has brought on both a Managing Director and Vice President of Marketing and Sales in Japan to strengthen the country’s executive leadership team.