Nature's Sunshine Shares Jump 19% After Company Gets Direct Selling Licence In China
Shares of Nature's Sunshine Products jumped 19% in early trade Tuesday, after the company said it has received a direct selling licence in China, the world's second-biggest direct selling market. The company, which sells nutritional and personal care products, said the licence will allow it to expand from its Shanghai headquarters. The company first applied for the licence in 2014 after forming a joint venture with Shanghai Fosun Pharmaceutical (Group) Co. Ltd., a local health care company. Nature's Sunshine said it will begin direct selling in the near term. China direct selling retail sales rose 19% in 2015 to $35.5 billion, accounting for 19.3% of global sales, according to data from the Federation of Direct Selling Associations, cited by Nature's Sunshine. Shares are down 30% in 2017, while the S&P 500 has gained 7%.
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