Herbalife's stock pulls back sharply after report of sudden removal of China president
Shares of Herbalife Ltd. slumped 5.2% in afternoon trade Tuesday, pulling back from a more than 3-year closing high in the previous session, amid reports that the nutritional supplements company's president of China operations was suddenly removed. The company was not immediately available for comment. China Securities Journal reported, based on a Google translation, that Herbalife China President Li Yanliang was removed after a decade in charge. The report said the removal was "sudden," as Herbalife's first-quarter report released late on May 4 showed that China-region sales grew the fastest at 17%, compared with the worldwide total growth of 1%. Through Monday, the stock had run up 18% since May 4 to close Monday at the highest level since Jan. 22, 2014. The stock has now soared 44% year to date, while the S&P 500 has gained 7.1%.
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