The Direct Selling Capital Advisors Direct Selling Index (DSCI) dropped 8.4% in August, marking the index’s second consecutive monthly decrease and its lowest monthly performance since March 1, 2020. In comparison, the Dow Jones Industrial Average (DJIA) increased 1.9 percent in August and 1.3 percent in July over the previous two months.
Three DSCI members fell by double-digit percentage points in August—Medifast, Inc. (NYSE: MED); The Beachbody Company, Inc. (NYSE: BODY); and Sharing Services Global Corporation (OTC: SHRG)—while an equal number rose by more than 10%—eXp World Holdings, Inc. (NASDAQ: EXPI); Tupperware Brands Corporation (NYSE: TUP); and Mannatech, Inc. (NASDAQ: MTEX). BODY and SHRG, surprisingly, were among the equities that fell by more than 10% in July.
In sum, 11 of the DSCI’s 17 equities, including seven of the eight small-cap firms, lost value in August.
The DSCI has gained a total of 82.8 percent since the tracking period began in March 2020, compared to 35.9% for the DJIA. The DSCI has gained 15.7 percent year to far, while the DJIA has gained 14.2 percent.
The DSCI’s poor performance over the last two months has effectively erased the prior two months’ large gains, particularly the 18.4 percent increase in May.
Large Cap Stocks
Betterware de Mexico (NASDAQ: BWMX) Despite announcing strong second-quarter earnings on August 5, the stock dropped 0.5 percent in August. Over the previous year, revenue, EBITDA, and net income all climbed by 81 percent, 92 percent, and 72 percent, respectively.
Tupperware Brands Corporation (NYSE: TUP) In August, it reversed a several-month negative trend, rising 14.3 percent and decreasing its year-to-date losses to 25.3 percent. TUP shares have increased by 737.5 percent since March 1, 2020. The company announced second-quarter results on August 4 that easily beat Wall Street’s forecasts. When compared to the previous year, quarterly net sales and adjusted EBITDA both increased by 17%.
Herbalife Nutrition, Inc. (NYSE: HLF) In August, the stock gained 0.8 percent, bringing its year-to-date performance to 2.9 percent and a gain of 58.7 percent since March 2020. Second-quarter net sales were $1.6 billion, up 15% from a year ago, and adjusted EBITDA increased even faster, to $262 million, up 18% from the second quarter of 2020.
Small Cap Stocks
In August, the small-cap stocks tracking set underperformed its large-cap counterparts, with seven of the eight stocks declining over the month. In August, Mannatech, Incorporated (NASDAQ: MTEX) was the best-performing DSCI component, climbing 27.1 percent. The stock has gained 81.8 percent in the first eight months of 2021, and the company published strong second-quarter financial results, including a 12.9 percent increase in revenue over the same period last year. In the quarter, diluted EPS increased by 111 percent to $0.99, up from $0.47 in 2020.
