Financial Data and Key Metrics Changes - For Q2 2022, the company reported revenue of $560.6 million, reflecting a negative foreign currency impact of 5% or $34.6 million [17] - Reported earnings per share (EPS) for the quarter was $0.67, or $0.77 when excluding additional charges related to the exit from Grow Tech [17] - Gross margin was 73.6%, showing a sequential improvement over the prior quarter, but was negatively impacted by foreign currency exchange rates and increased promotions [18] - Operating margin for the quarter was 9.2%, down from 12.1% in the prior year period, with expectations for sequential gains in the second half of 2022 [19] - Cash from operations was $46.5 million, compared to $20.7 million in the prior year, with a $27 million reduction in inventory during the quarter [19][20] Business Line Data and Key Metrics Changes - The Rhyz segment, which includes manufacturing partners, declined 20% in the quarter due to soft demand for external customer products [21] - The core Nu Skin business saw a gross margin of 77%, compared to 78.3% in the prior year quarter [18] Market Data and Key Metrics Changes - Revenue in Mainland China was down 42% in local currency, significantly impacted by extended COVID-related lockdowns [11] - Hong Kong and Taiwan grew 6% in constant currency, driven by product launches and social commerce [12] - The Americas, particularly the US, delivered a 6% year-over-year revenue increase, marking the ninth consecutive quarter of growth [12] - EMEA segment revenue was down 31% in constant currency due to geopolitical distractions [13] - Southeast Asia Pacific saw a 16% increase in constant currency revenue, driven by the ageLOC Meta product [13] Company Strategy and Development Direction - The company is focused on Nu Vision 2025, aiming to become a leading integrated beauty and wellness company powered by an affiliate opportunity platform [4][6] - Key strategic imperatives include personalized beauty and wellness, affiliate-powered social commerce, and a digital-first ecosystem [6][9] - The introduction of the LumiSpa iO device is a significant step in the company's strategy to connect with customers on a personal level [7][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro challenges, including lockdowns in China and economic uncertainties in emerging markets [4][14] - The company anticipates continued headwinds in several regions and has adjusted its 2022 outlook accordingly [14][22] - A restructuring event is planned for the second half of the year, expected to yield approximately $100 million in cost savings in 2023 [15][22] Other Important Information - The company has closed a $900 million debt facility to strengthen its financial position and support Nu Vision 2025 [20] - The effective tax rate for the quarter was 20.2%, down from 27.1% in the prior year, primarily due to strong growth in the US market [20] Q&A Session Summary Question: Can you provide insights on key markets and the launch timeline for LumiSpa iO and digital tools? - Management indicated that LumiSpa iO will have limited introductions in Q3, with broader launches in Q4, while digital tools will continue to roll out throughout Q3 and Q4 [26][27] Question: What feedback has been received regarding Collagen+ and its integration? - Collagen+ is performing well and is a top five product, with positive feedback on its integration with LumiSpa [30][32] Question: Can you elaborate on the cost restructuring program and its implementation? - The restructuring program is focused on reallocating resources to align with growth areas, with an expected $100 million in savings for 2023 [33][35] Question: What is the impact of the one price incentive structure on sales leaders? - The one price model aims to institutionalize retail margins into products, facilitating sales for new brand affiliates [38][40] Question: When can positive revenue growth in China be expected? - Management expressed uncertainty regarding the timeline for returning to positive growth in China due to ongoing COVID restrictions [47][50] Question: How has the recent price increase affected pricing elasticity and gross margin? - Management noted that while inflationary pressures exist, the value proposition of products remains strong, and they are committed to managing price increases carefully [52][55]

Revenue Performance - Revenue for Q2 2022 decreased 20% to $560.6 million, compared to $704.1 million in Q2 2021, and for the first half of 2022, revenue decreased 16% to $1.2 billion from $1.4 billion in the prior-year period [90]. - The total revenue for Rhyz Investments decreased 20% to $38.5 million in Q2 2022 compared to $48.2 million in Q2 2021 [94]. - U.S. market revenue increased 6% in Q2 2022 and 10% in the first half of 2022, driven by product launches including Beauty Focus Collagen+ and Nu Biome [103]. - Southeast Asia/Pacific segment revenue increased 12% in Q2 2022, with ageLOC Meta generating approximately $18.2 million in revenue for the quarter [108]. Earnings and Profitability - Earnings per share for Q2 2022 decreased 42% to $0.67, compared to $1.15 in Q2 2021, and for the first six months of 2022, earnings per share decreased 31% to $1.43 from $2.06 in the prior-year period [91]. - The company reported a decline in gross margin due to sales promotions, contributing to the decrease in earnings per share [91]. - Gross profit margin decreased to 73.6% in Q2 2022 from 75.6% in Q2 2021, attributed to increased sales promotions and a shift in product mix [116]. - Net income for Q2 2022 was $34.2 million, down from $59.3 million in Q2 2021, and for the first half of 2022 was $73.0 million compared to $106.8 million in the prior year [122]. Customer and Affiliate Metrics - The number of Customers declined by 6% year-over-year to 1,380,615, with significant declines in the Americas (18%) and EMEA (22%) regions [99]. - Paid Affiliates decreased by 16% year-over-year to 242,133, with the most significant drop in Mainland China (52%) and EMEA (24%) regions [100]. - Sales Leaders decreased by 24% year-over-year to 50,085, with a notable decline in Mainland China (45%) and EMEA (35%) regions [101]. - Customers in Mainland China increased by 19% in Q2 2022, primarily due to customer promotions and the launch of digital tools [105]. Expenses and Cost Management - Selling expenses as a percentage of revenue decreased to 39.1% in Q2 2022 from 39.9% in Q2 2021 [117]. - General and administrative expenses decreased to $141.6 million in Q2 2022 from $166.1 million in Q2 2021, with a notable reduction in labor expenses [118]. - The company anticipates restructuring charges of approximately $30 million for Q3 2022 and $35–$45 million for the second half of 2022 [91]. Cash and Capital Management - Working capital increased to $498.8 million as of June 30, 2022, compared to $343.3 million at the end of 2021, primarily due to debt modification [124]. - Capital expenditures for the first half of 2022 were $19.8 million, with an estimated total of $70-90 million expected for the year, including a new manufacturing plant in Mainland China [125]. - The company held $381.8 million in cash and cash equivalents as of June 30, 2022, including $257.2 million held outside the U.S. [130]. - The company plans to repatriate undistributed earnings from non-U.S. operations as necessary, considering cash needs for dividends, stock repurchases, and strategic transactions [131]. Debt and Financial Instruments - As of June 30, 2022, the company had $30.0 million in outstanding borrowings under its revolving credit facility and $400.0 million on its term loan facility [126]. - The company had a consolidated leverage ratio not exceeding 2.25 to 1.00 and an interest coverage ratio of no less than 3.00 to 1.00 as of June 30, 2022 [126]. - The company entered into four interest rate swaps with a total notional principal amount of $200 million to hedge variable cash flows associated with its variable-rate debt [127]. - The company does not use derivative financial instruments for trading or speculative purposes and regularly monitors foreign currency risks [142]. Future Outlook - The EmpowerMe personalized beauty and wellness strategy is expected to launch the ageLOC LumiSpa iO in the second half of 2022 [90]. - The company anticipates that existing cash balances and future cash flows will be adequate to fund cash needs on both a short- and long-term basis [132].

Nu Skin Enterprises, Inc. (NYSE:NUS) Q1 2022 Earnings Conference Call May 4, 2022 4:30 PM ET Company Participants Scott Pond – Vice President-Investor Relations Ryan Napierski – President and Chief Executive Officer Connie Tang – Chief Global Growth Officer Mark Lawrence – Chief Financial Officer Conference Call Participants Steph Wissink – Jefferies Doug Lane – Lane Research Mark Astrachan – Stifel Linda Bolton Weiser – D.A. Davidson Operator Good day, and welcome to the First Quarter 2022 Nu Skin Enterpri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-12421 NU SKIN ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Delaware 87-0565309 (State or other ju ...

Nu Skin Enterprises, Inc. (NYSE:NUS) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Participants Scott Pond - VP, IR Ryan Napierski - President and CEO Connie Tang - Chief Global Growth and Customer Experience Officer Mark Lawrence - EVP and CFO Conference Call Participants Steph Wissink - Jefferies Doug Lane - Lane Research Chris Armes - Stifel Operator Good day and thank you for standing by. Welcome to the Third Quarter 2021 Nu Skin Enterprises Earnings Conference Call. At this time, ...