Nu Skin Q4 Revenue Down From $1.06 Billion To $609 Million

 

Nu Skin Enterprises, Inc. (NYSE: NUS) today announced fourth-quarter results with revenue of $609.6 million, the top end of the company's guidance, compared to $1.06 billion in the prior-year period.

Revenue in the fourth quarter of 2013 was augmented by $350 million in limited-time offer sales of the ageLOC TR90 weight management system. Revenue for the quarter was negatively impacted 4 percent by foreign currency fluctuations.

Earnings per share for the quarter were at the top end of guidance at $0.77, versus $2.02 in the prior-year period. Earnings per share for the quarter were negatively impacted $0.08 by prepayment fees associated with the refinancing of the company's debt, and $0.06 by foreign currency translation expense.

The company reported full-year 2014 revenue of $2.57 billion, a 19 percent year-over-year decline.  Annual revenue was negatively impacted 3 percent by foreign currency fluctuations. Earnings per share for the year were $3.11 compared to $5.94 in 2013.

Our business performed as we expected for the quarter, and we look forward to a solid 2015, said Truman Hunt, president and chief executive officer.

As we review the year, three factors impacted our results. First, our year-over-year comparisons were especially challenging considering that we were lapping a $550 million TR90 launch in the second half of 2013, our largest product introduction. Second, a strengthening U.S. dollar negatively impacted revenue by more than $100 million in 2014, and by $24 million sequentially from the third to the fourth quarter.

Third, the proactive steps we took early in 2014 in Mainland China to address a regulatory review impacted revenue significantly, although we stabilized revenue from the second to the fourth quarter. Despite the 2014 revenue decline, our three-year compounded annual revenue growth rate was 14 percent, reflecting longer-term business improvement.