ADA — Direct-selling giant Amway Corp. announced today that its sales dipped for a fourth consecutive year, but it expects a turnaround for 2018.
The privately-held company issued a statement today saying that it generated $8.6 billion in sales for 2017, a decline of 2.2 percent from the previous year.
Executives cited “a challenging period” for its Chinese business and unfavorable exchange rates for the decline, but said sales in the second half of 2017 were up by 3 percent on a year-over-year basis.
While the company believes its 2017 performance shows the “downward trajectory has leveled off,” Amway’s sales have slumped more than 27 percent from their peak of $11.8 billion in 2013.
The improving conditions experienced in the second half of 2017, coupled with investments in digital sales and support technology, should bolster the company’s performance this year and on a go-forward basis, according to a statement.
“Technology is evolving at a rapid pace and we are evolving and investing right along with it,” said Steve Van Andel, chair of Amway’s board of directors. “The next-generation entrepreneur wants to run his or her business on the go. Meeting the unique needs of ‘next’ entrepreneurs will be the key to our success and long-term growth, as will meeting the digital needs of consumers.”
Nutrition and dietary products made up half of Amway’s sales last year, while home and durable products were 21 percent of sales.
The company said its top sales markets last year were China, United States, South Korea, Japan, Thailand, Taiwan, India, Russia, Malaysia and Hong Kong.