Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Olivia Tong with Bank of America/Merrill Lynch. Please proceed.
Olivia Tong – Bank of America/Merrill Lynch
Thanks, good afternoon. Just want to talk a little bit about the Q4 outlook. You guys did a pretty substantial (inaudible) this quarter and if you take out four points of the effects, looking at sort of a four – let’s say a 4% organic growth expectation for top line in Q4, is there something that I am not thinking of that would make it decelerate from the plus seven that you did in Q3? Or is this just sort of – it’s still kind of early on in the process of recovery and you want to – you don’t want to over promise so early on?
Truman Hunt
Yes, I think it’s a matter of trying to be conservative of what we have going on. Our big launch of ageLOC really happened in the first quarter of next year. We did have a real strong convention, which came in as we – right after we had kind of given the fourth quarter guidance as Truman mentioned. We’ll kind of weight that in with the end of the October month here and beginning of November. Essentially with 3% to 4% benefit from foreign currency, it puts our growth rate in about the 5% to 6% local currency growth rate, which is an acceleration from where we were in the first half of the year. So we do continue to see the business very strong coming into the last half of the year.
Olivia Tong – Bank of America/Merrill Lynch
Got it. And then just the margin expansion obviously has been pretty impressive this year. And just sort of wondering I know it’s a little early and you are going to be talking about 2010 come analyst day, but wondering if you could give – just give us a little bit insight into where you think that margins will go in the next couple of years and what’s going to drive that, whether it be gross margin getting a little bit better or if it’s more efficiencies in G&A or better leverage on the Wealth Maximizer program.
Truman Hunt
Yes, this is probably an area as a Company we are – management team we are very encouraged about because it’s taken a lot of work to get to this point, but we really do feel like we are just starting to feel the benefits of a lot of the efforts we’ve put in place. Obviously we are seeing that in selling expense. We are seeing it in G&A. We’ll have some additional benefits next year because we’ll get the full effect of the Japan restructuring. We do believe there is opportunity in gross margin, especially with the launch of ageLOC, and so we will kind of lay out our details in the way we see the plans rolling out at our investor day and try and get more transparency to what we are thinking at that point in time.
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