Nu Skin – Q2 2012 Revenue Up 40% to $593 Million
PROVO, Utah, July 26, 2012 /PRNewswire/ — Nu Skin Enterprises, Inc. (NYSE: NUS) today announced record second-quarter results with revenue of $593.2 million, a 40 percent improvement over the prior-year period. Revenue was negatively impacted 2 percent from foreign currency fluctuations. Earnings per share for the quarter increased 45 percent to $0.94, compared to $0.65 in the prior year.
Once again, we are pleased to announce record quarterly results, highlighted by the most successful regional product launch in our history that boosted revenue by more than 150 percent in Greater China and 66 percent in South Asia, said Truman Hunt, president and chief executive officer. The tremendous launches of our latest ageLOC products generated approximately $165 million in product orders, with $140 million reported in revenue during the quarter and the balance to be shipped in the third quarter. Our product innovation is energizing our customer base and sales force, as demonstrated by strong growth in both our actives and executive distributors.
While emerging markets continue to drive significant growth, we are also very pleased with results in our mature markets during the second quarter, including local-currency revenue improvements of 21 percent in the Americas and 20 percent in Europe. We also saw positive trend improvements in Japan.
Our overall profitability continued to improve as we generated a 16.5 percent operating margin during the quarter. In addition, we utilized the strength of our balance sheet to repurchase approximately 2.4 million shares for $108 million, said Hunt.
Regional Results
North Asia. Second-quarter revenue in North Asia was $177.7 million, compared to $183.1 million for the same period in 2011. Results were negatively impacted 1 percent from foreign currency fluctuations. South Korea experienced a local-currency revenue decline of 3 percent while Japan's local-currency revenue decline improved to 1 percent. The number of executive distributors in the region was down 5 percent while the number of actives improved 2 percent.
Greater China. Revenue in Greater China increased 152 percent to $199.7 million, compared to $79.4 million in the prior-year period. Foreign currency fluctuations positively impacted revenue 1 percent. Results included approximately $100 million of product launch sales. The executive distributor and employee sales representative count in the region improved 111 percent, while the number of actives increased 31 percent compared to the prior year.
South Asia/Pacific. South Asia/Pacific revenue was $98.3 million, a 66 percent improvement compared to the prior year. Sales in the quarter included approximately $40 million of new ageLOC products. Foreign currency fluctuations negatively impacted revenue by 5 percent. The region's executive count improved 97 percent while the active count increased 9 percent compared to the same period in 2011.
Americas. Revenue in the Americas improved 20 percent to $71.8 million, compared to $59.8 million in the prior-year period. The number of executives grew 16 percent while the number of actives increased 3 percent during the quarter.
Europe. Revenue in Europe was $45.7 million, a 7 percent improvement over the prior-year period. Results in the region were negatively impacted approximately 13 percent by foreign currency fluctuations. The executive and active counts in Europe increased 18 and 8 percent, respectively, compared to the prior year.
