Herbalife Ltd. Announces Fourth Quarter and Full Year 2014 Results, and 2015 Earnings Guidance Fourth quarter adjusted 1 EPS increased 10% to $1.41 per diluted share compared to $1.28 per diluted share for the prior year

Ltd. Announces Fourth Quarter and Full Year 2014 Results, and 2015

EPS increased 10% to $1.41 per diluted share compared to $1.28 per

diluted share for the prior year comparable quarter. Reported EPS

increased 5% to $1.21 per diluted share compared to $1.15 per diluted

share in the prior year.

quarter worldwide net sales of $1.1 billion, down 11% due to an

unfavorable impact from currency; net sales excluding currency impact

were flat compared to the prior year period.

sales leader retention of approximately 54.2% percent.

adjusted EPS guidance to a range of $4.10 to $4.50.

LOS ANGELES--(BUSINESS WIRE)--February 26, 2015--Herbalife Ltd. (NYSE:

HLF) today reported fourth quarter net sales of $1.1 billion, reflecting

a decline of 11 percent, primarily due to the unfavorable impact of

currency fluctuations. Net sales, excluding currency impact, were flat

compared to the prior year. Adjusted net income for the quarter was

$121.0 million, or $1.41 per diluted share, compared to $137.2 million,

or $1.28 per diluted share for the same period in 2013. On a reported

basis, the company announced fourth quarter net income of $103.3

million, or $1.21 per diluted share, compared to $123.5 million, or

$1.15 per diluted share for the same period in 2013. Fourth quarter 2014

EPS was negatively impacted by a $0.31 currency headwind.

For the twelve months ended December 31, 2014, the company reported net

sales of $5.0 billion, a 3 percent increase compared to 2013. Net sales,

excluding currency impact, increased 8 percent compared to 2013. For the

twelve months ended December 31, 2014, the company reported net income

of $308.7 million, or $3.40 per diluted share. On an adjusted basis, net

income of $538.5 million decreased 7 percent versus adjusted net income

of $577.4 million for the same period in 2013. Adjusted EPS for full

year 2014 of $5.93 increased by 10 percent versus adjusted EPS of $5.37

Michael Johnson, chairman and CEO stated, "2014 was a record year in

terms of net sales, volume and sales leader retention. It was also a

year of transition, as we continue to implement changes that we believe

will create a stronger company with the ideal combination of growth and

sustainability. We have seen the success of these changes in early

adopter markets and remain confident that our other markets will follow

a similar pattern through 2015 and beyond."

Johnson continued, "Our revised guidance reflects the currency landscape

faced by all global companies and the short-term volume impact of the

enhancements we are making. We believe we are executing the right

long-term strategy and are confident in our ability to create

sustainable value for our shareholders and the millions of Herbalife

members and their customers worldwide."

For the year ended December 31, 2014, the company generated cash flow

from operations of $511.4 million, invested $156.7 million in capital

expenditures, and repurchased approximately $1.3 billion in common

shares outstanding under the approved share repurchase program.

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"Reconciliation of Non-GAAP Financial Measures" for more detail.

Fourth Quarter and Fiscal 2014 Key Metrics2,3

Regional Volume Point and Average Active Sales Leader Metrics

2 Supplemental tables that include additional business

metrics can be found at http://www.ir.herbalife.com.

Worldwide Average Active Sales Leaders may not equal the sum of the

Average Active Sales Leaders in each region due to the calculation being

an average of Sales Leaders active in a period, not a summation, and the

fact that some sales leaders are active in more than one region but are

counted only once in the worldwide amount.

2015 Annual Sales Leader Requalification 4

Each year, by the end of January, sales leaders are required to

re-qualify to retain their sales leader status. A record number of sales

leaders were retained in 2015. The pool of sales leaders needing to

re-qualify increased by approximately 2% compared to the prior year, and

we retained 7% more of them than in the prior year. Our overall

retention rate increased to 54.2% compared to 51.8% from the prior year.

2015 First Quarter and Full Year Guidance

Guidance includes an unfavorable impact from currency rates. For the

first quarter, we expect an approximately $0.28 impact, inclusive of

approximately $0.10 resulting from Venezuela. Full year guidance

includes a currency headwind of approximately $1.19, including

approximately $0.45 from Venezuela.

Based on current business trends the company's first quarter fiscal 2015

and full year fiscal 2015 guidance is as follows:

Guidance excludes the impact of expenses primarily related to legal and

advisory services relating to the company's ongoing business matters,

expenses related to an FTC Civil Investigative Demand or CID, and the

impact of non-cash interest costs associated with the company's

Convertible Notes and the expenses incurred related to the effort to

recover costs related to the re-audits that occurred in 2013. Forward

guidance is based on the average daily exchange rates of the first three

weeks of January. With respect to Venezuela, the guidance assumes a rate

of 50 to 1 for all of 2015 and excludes the potential impact of the

recent and any future devaluation of the Venezuelan Bolivar and future

repatriation, if any, of existing cash balances in Venezuela.

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4 Results exclude China,

Venezuela and Argentina

Fourth Quarter and Fiscal 2014 Earnings Conference Call

Herbalife senior management will host an investor conference call to

discuss its recent financial results and provide an update on current

business trends on Thursday, February 26, 2015 at 2:30 p.m. PST (5:30

The dial-in number for this conference call for domestic callers is

(877) 317-1296 and (706) 634-5671 for international callers (conference

ID 67375297). Live audio of the conference call will be simultaneously

webcast in the investor relations section of the Company's website at http://ir.herbalife.com.

An audio replay will be available following the completion of the