NU Skin Q3 Revenue Down 13.8% To $430 Million

Nu Skin Enterprises Inc. (NYSE: NUS) announced third quarter results.

Business For Home comment:

• Nu Skin lost almost $1 Billion in revenue from 2018 ($2,680 Million) to 2024  ($1,730 Million forecast).
• Nu Skin lost 400,000+ customers from 2018 (1,244,000) to 2024 (831,768)
• Nu Skin lost almost 50% of it sales leaders from 2018 (73,400) to 2024 (38,284)

Nu Skin press release:

Executive Summary Q3 2024 vs. Prior-year Quarter

• Revenue $430.1 million; (13.8)%
• Earnings Per Share (EPS) $0.17 compared to $(0.74) or $0.56 excluding an inventory write-off.
• Customers 831,768; (15)%
• Paid Affiliates; 149,264; (20)% or (11)% excluding an adjustment to eligibility requirements
• Sales Leaders; 38,284; (19)%

“During the third quarter, we achieved results within our previous guidance range with challenges in the core business partially offset by continued strong growth in our Rhyz segment,”

said Ryan Napierski, Nu Skin president and CEO.

“While we continue to face macroeconomic pressures and challenges within the direct selling industry, our immediate focus is to strengthen the Nu Skin core with a revised business model intended to improve channel activation and customer growth beginning with North America and South Korea this quarter.

In addition, we are introducing a streamlined operating framework to improve profitability with an adjusted pricing model to improve customer penetration in developing markets starting with Latin America and certain markets in Southeast Asia, and an accelerated product portfolio optimization plan to improve overall gross margin globally. We also continue to empower growth in our Rhyz businesses with impressive results coming from Mavely and our manufacturing companies.”

James D. Thomas, chief financial officer said:

“As part of our cost-efficiency program, during the quarter we saved an additional $15 million in general and administrative expense and remain on track to meet the high end of our range of $45 to $65 million for 2024. During the quarter, we generated $31.4 million in cash from operations, reduced inventory levels $43 million year over year and paid down debt to further strengthen our balance sheet.

Given ongoing pressures in the core Nu Skin business, we are adjusting our 2024 outlook. We now anticipate 2024 revenue in the range of $1.70 to $1.73 billion, with earnings per share of $(2.32) to $(2.22) or $0.65 to $0.75 excluding restructuring and impairment charges. For Q4, we are forecasting projected revenue of $410 to $445 million and earnings per share of $(0.09) to $0.01 or $0.19 to $0.29 excluding planned restructuring charges.”

About Nu Skin Enterprises Inc.

The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide.

Backed by 40 years of scientific research, the company’s products help people look, feel and live their best with brands including Nu Skin® personal care, Pharmanex® nutrition and ageLOC® anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories.