Core Insights - Nu Skin Enterprises, Inc. (NUS) reported disappointing third-quarter 2024 results, with both earnings and net sales falling short of Zacks Consensus Estimate, leading to a downward revision of its 2024 outlook due to ongoing macroeconomic pressures and challenges in the direct selling industry [1][10]. Financial Performance - Adjusted earnings for the third quarter were 17 cents per share, a decline from 56 cents in the same quarter last year, missing the Zacks Consensus Estimate of 20 cents [2]. - Quarterly revenues amounted to $430.1 million, a decrease of 13.8% year over year, with a negative impact of 3.4% from foreign currency fluctuations; on a constant-currency basis, revenues fell 10.4% [3]. - Gross profit increased to $301.5 million from $292.3 million year over year, but gross margin (excluding inventory write-off impact) decreased to 70.1% from 71.8% [5]. - Selling expenses decreased to $167.6 million from $187.8 million in the prior-year quarter, but as a percentage of revenues, it rose to 39% from 37.6% [6]. - General and administrative expenses were $115.6 million, down from $130.9 million year over year, but as a percentage of revenues, it increased to 26.9% from 26.2% [7]. Customer and Affiliate Metrics - Sales leaders decreased by 19% year over year to 38,284, while the customer base dropped 15% to 831,768, and paid affiliates fell by 20% to 149,264 [4]. Regional Revenue Performance - Revenue declines were noted across various regions: Americas (-15.8%), Southeast Asia/Pacific (-13.4%), Mainland China (-24.5%), Japan (-11.6%), South Korea (-29.1%), Europe & Africa (-22.9%), and Hong Kong/Taiwan (-17.1%) [7]. Financial Health - As of the end of the quarter, the company had cash and cash equivalents of $227.8 million, long-term debt of $373.5 million, and total stockholders' equity of $706.9 million [8]. - The company declared a cash dividend of 6 cents per share, payable on December 11, 2024, to shareholders of record as of November 29 [9]. Future Outlook - For 2024, Nu Skin anticipates revenues between $1.70 billion and $1.73 billion, indicating a 12-14% decline from the previous year, with unfavorable foreign currency impacts expected to affect revenues by 4-3% [10]. - Adjusted earnings per share for 2024 are projected to be between 65-75 cents, down from $1.85 in 2023 [11]. - For the fourth quarter of 2024, the company expects revenues between $410 million and $445 million, reflecting a decline of 9% to 16% from the previous year [12].

ad NU SKIN Q3 2024 Financial Overview 1- Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company's current expectations and beliefs. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws and inclu ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $430.1 million, down from $498.8 million in the prior year, reflecting a negative foreign currency impact of 3.4% or $16.7 million [29][30] - Earnings per share for Q3 2024 was $0.17, compared to negative $0.74 in the prior year [29] - Gross margin improved to 70.1% from 58.6% in the prior year, with the core Nu Skin business gross margin at 76.5% [30] - Selling expense as a percentage of revenue increased to 39% from 37.6% in the prior year [31] - General and administrative expenses declined by approximately $15 million year-over-year, with G&A as a percentage of revenue at 26.9% [32] Business Line Data and Key Metrics Changes - The Rhyz segments exceeded forecasts, growing over 20% year-over-year, primarily driven by Mavely, the affiliate marketing platform [6][9] - Manufacturing continues to perform well, servicing various beauty and wellness brands [10] - The core Nu Skin business is undergoing SKU optimization, with a target to reduce another 30% of low-performing SKUs by 2025 [12][27] Market Data and Key Metrics Changes - Growth was observed in several markets in Latin America and Southeast Asia, while pressures continued in larger markets like South Korea and China [6][7] - The company is exploring future market expansion into India, which has significant potential due to its large population and growing economy [23] Company Strategy and Development Direction - The company aims to evolve its core business towards a more integrated beauty, wellness, and lifestyle ecosystem [5][24] - Near-term priorities include product portfolio optimization, a new sales performance plan, and operational optimization in underperforming markets [11][15][16] - Long-term strategies focus on building a leading beauty and wellness ecosystem, with new product launches and innovations in cognitive health and nutrition [17][19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges in the macroeconomic environment but remains optimistic about long-term potential, particularly in China [7][68] - The company is focused on cost optimization and operational efficiencies to improve profitability and cash flow [10][36] - Future guidance for 2024 revenue is projected between $1.70 billion and $1.73 billion, with anticipated earnings per share of negative $2.32 to negative $2.22 [34] Other Important Information - The company is on track to achieve G&A savings of $45 million to $65 million [28] - A beta version of Mavely will be released to U.S. brand affiliates, enhancing their ability to engage with customers [22] Q&A Session Summary Question: Timeline for stabilizing the core Nu Skin business - Management indicated that while there are ongoing initiatives, stabilization may take until 2025 or even 2026 due to current challenges [38][40] Question: Contribution of Rhyz and Mavely - Rhyz is performing well, with Mavely being a significant contributor, and the company continues to invest in this platform [44][46] Question: Profitability and gross margin concerns - Management explained that geographic mix and the decline in higher-margin markets like China have impacted gross margins, but they are optimistic about future improvements [52][54] Question: Update on affordable luxury launches and nutrition expansion - The company is focusing on affordable luxury products and shifting innovation towards the nutrition segment, which has shown higher customer retention [60][66] Question: Expectations for China amid government stimulus - Management remains cautious about the impact of government stimulus on consumer spending in China, hoping for improved consumer sentiment [68][69]

Revenue Performance - Revenue for Q3 2024 decreased 14% to $430.1 million, compared to $498.8 million in Q3 2023, and for the first nine months of 2024, revenue decreased 13% to $1.3 billion from $1.5 billion in the prior-year period[85]. - The total revenue for Nu Skin in Q3 2024 was $356.996 million, down 18.5% from $438.245 million in Q3 2023[90]. - The Americas segment revenue decreased by 15.8% in Q3 2024 and 21.1% in the first nine months[90]. - Mainland China segment revenue decreased by 24.5% in Q3 2024 and 21.1% in the first nine months[90]. - Total customers decreased by 15% year-over-year to 831,768 as of September 30, 2024, down from 978,907[97]. - Customer, Paid Affiliates, and Sales Leaders declined 15%, 20%, and 19% year-over-year, respectively[85]. - The company faced macroeconomic pressures impacting consumer spending and customer acquisition, contributing to revenue declines[86]. - Seasonal factors, such as local New Year celebrations in Asian markets, negatively impact revenue in the first quarter, while the third quarter is affected by vacation patterns[150]. Profitability and Earnings - Earnings per share for Q3 2024 increased to $0.17, compared to $(0.74) in Q3 2023, while EPS for the first nine months decreased to $(2.23) from $0.03 in the prior-year period[87]. - Net income for Q3 2024 was $8.3 million, a significant improvement compared to a net loss of $37.0 million in the prior-year period[129]. - Gross profit as a percentage of revenue increased to 70.1% for the third quarter of 2024, compared to 58.6% for the prior-year period[118]. - Selling expenses as a percentage of revenue increased to 39.0% for the third quarter of 2024, compared to 37.6% for the prior-year period[120]. - Interest expense decreased to $6.5 million in Q3 2024 from $7.5 million in the prior-year period, primarily due to reduced borrowings on the revolving credit facility[126]. Investments and Capital Expenditures - Total Rhyz Investments revenue for Q3 2024 was $73.1 million, a 20.9% increase from $60.5 million in Q3 2023[90]. - Capital expenditures for the nine months ended September 30, 2024, were $29.0 million, with expectations of total capital expenditures for 2024 ranging from $35 million to $55 million[132][133]. Strategic Initiatives - The company plans to introduce a new sales performance plan in Q4 2024 to enhance affiliate marketing and attract new affiliates[86]. - The company plans to introduce a new sales performance plan in North America and South Korea starting in November 2024[100][109]. - New product launches generated approximately $27.8 million in revenue for the first nine months of 2024[100]. Foreign Currency and Economic Factors - The company may reduce exposure to foreign currency fluctuations through foreign currency exchange contracts and intercompany loans, but does not use derivative financial instruments for trading or speculative purposes[158]. - The reported revenue and earnings are positively impacted by a weakening of the U.S. dollar and negatively impacted by a strengthening of the U.S. dollar due to a significant portion of business derived from outside the United States[156]. - The company's revenue and profitability forecasts for goodwill impairment assessments considered recent and historical performance, strategic initiatives, industry trends, and macroeconomic factors[148]. Impairment Charges - The company recorded a non-cash goodwill impairment charge of $130.9 million in Q2 2024 due to the estimated fair value of several reporting units being less than their carrying value[124]. - An impairment charge of $10.1 million was recognized for the BeautyBio retail asset group in Q2 2024, as its carrying value exceeded the estimated fair value[125]. Cash Flow and Financial Position - Cash generated from operations in the first nine months of 2024 was $86.0 million, up from $64.5 million in the same period of 2023[130]. - As of September 30, 2024, the company had $237.8 million in cash and cash equivalents, down from $267.8 million at the end of 2023[130]. - The company had $70.0 million and $365.0 million in outstanding borrowings under its revolving credit facility and term loan facility, respectively, as of September 30, 2024[134]. - The effective tax rate for the nine-month period ended September 30, 2024, was 5.8% of pre-tax income, influenced by goodwill impairment and restructuring charges[128]. Investor Relations - The company's Investor Relations website provides access to financial reports and other material information for investors[153].

Company Performance - Nu Skin Enterprises (NUS) reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.20 per share, and down from $0.56 per share a year ago [1] - The quarterly report reflects an earnings surprise of -15%, with the previous quarter's earnings being $0.21 per share against an expectation of $0.18 per share, resulting in a surprise of 16.67% [2] - Revenues for the quarter ended September 2024 were $430.15 million, missing the Zacks Consensus Estimate by 3.14%, and down from $498.77 million year-over-year [3] Stock Performance - Nu Skin shares have declined approximately 66.6% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [4] - The current Zacks Rank for Nu Skin is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $457.1 million, and for the current fiscal year, it is $0.78 on revenues of $1.76 billion [8] - The cosmetics industry, to which Nu Skin belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, which may impact stock performance [9]

Revenue Performance - Q3 2024 revenue was $430.1 million, a decrease of 13.8% year-over-year, with a foreign exchange impact of $(16.7) million[1][2] - Full-year 2024 revenue is expected to be in the range of $1.70 billion to $1.73 billion, a decrease of 14% to 12%[5] - Total revenue for the nine months ended September 30, 2024, was $1,286,532, a decrease of 13.1% compared to $1,480,491 in 2023[14] - Revenue for Q3 2024 was $430,145, a decrease of 13.8% from $498,772 in Q3 2023[25] - Q4 2024 revenue guidance is projected between $410 million and $445 million, reflecting a decline of 16% to 9%[4] - The Americas segment reported revenue of $237,160, down 21.1% from $300,469 in the previous year[14] Customer and Affiliate Metrics - The number of customers decreased by 15% to 831,768, while paid affiliates dropped by 20% to 149,264[1][2] - Total paid affiliates decreased by 20% to 149,264 from 186,162 in the same period last year[15] - The total number of customers fell by 15% to 831,768 from 978,907 year-over-year[16] Profitability and Margins - Gross margin improved to 70.1% compared to 58.6% in the prior year, with Nu Skin business gross margin at 76.5%[2] - Operating margin for Q3 2024 was 4.2%, compared to (5.3)% in the prior year[2] - The company reported a gross profit of $301,463 for Q3 2024, up from $292,267 in Q3 2023[21] - Gross profit for Q3 2024 was $301,463, compared to $292,267 in Q3 2023, reflecting a year-over-year increase of 3.9%[23] - Adjusted gross profit, excluding the impact of inventory write-off, was $301,463 for Q3 2024, down from $357,995 in Q3 2023, indicating a decrease of 15.8%[23] - Gross margin for Q3 2024 was 70.1%, up from 58.6% in Q3 2023, while the gross margin excluding inventory write-off impact was 70.1%, compared to 71.8% in Q3 2023[23] Income and Earnings - Operating income for Q3 2024 was $18,231, compared to a loss of $26,365 in Q3 2023[21] - Net income for Q3 2024 was $8,302, a significant improvement from a net loss of $36,955 in Q3 2023[21] - The effective tax rate for Q3 2024 was 37.6%, compared to (7.3)% in Q3 2023, indicating a substantial change in tax obligations[26] - Diluted earnings per share for Q3 2024 was $0.17, compared to a loss of $(0.74) in Q3 2023[27] - The company reported an adjusted operating income of $18,231 for Q3 2024, compared to $39,363 in Q3 2023, reflecting a decrease of 53.7%[25] Cost Management - The company saved an additional $15 million in general and administrative expenses during the quarter, aiming for total savings of $45 to $65 million for 2024[5] - The company generated $31.4 million in cash from operations and reduced inventory levels by $43 million year-over-year[5] Asset and Liability Changes - Total assets decreased to $1,590,895 from $1,806,463 at the end of 2023[22] - Goodwill decreased significantly to $99,885 from $230,768 at the end of 2023[22] - Total liabilities decreased to $876,020 from $984,495 at the end of 2023[22]

Core Viewpoint - Nu Skin Enterprises, Inc. (NUS) is expected to report a decline in both revenue and earnings for the third quarter of 2024, with revenues estimated at $444.1 million, reflecting an almost 11% decrease year-over-year, and earnings per share projected at 20 cents, indicating a 64.3% decline from the previous year [1][3]. Financial Performance Expectations - The Zacks Consensus Estimate for NUS's revenues is $444.1 million, suggesting a decrease of nearly 11% from the prior-year quarter [1]. - The consensus estimate for earnings per share has remained unchanged at 20 cents, indicating a decline of 64.3% from the figure reported in the year-ago quarter [1]. - NUS anticipates revenues between $430 million and $465 million for the third quarter, which translates to a decline of 14% to 7% from the year-ago quarter's reported level [4]. Industry Challenges - The company has been facing macroeconomic challenges that have negatively impacted performance, particularly in consumer spending and customer acquisition for premium products [3]. - Direct selling industry pressures and adverse foreign currency fluctuations are additional concerns affecting the company's performance [4]. Positive Aspects - Despite the challenges, Nu Skin's Rhyz business has shown strong performance, supported by innovation, brand building, and effective cost management [5]. - The company continues to benefit from its strategic pillars, which include Products, Programs, and Platforms [5]. Earnings Prediction Insights - The current model does not predict an earnings beat for Nu Skin, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6].

Core Insights - Later partners with Mavely to enhance affiliate capabilities in creator campaigns, aiming to address the challenge of measuring full-funnel impact in social commerce [1][2] - The integration allows brands to manage influencer marketing campaigns while tracking traffic, orders, revenue, and costs effectively [2][3] - The partnership emphasizes ease of use, requiring no technical implementation, thus enabling marketers to focus on strategy rather than technical hurdles [3] Company Overview - Later is a unified social revenue platform trusted by over eight million users, including enterprise clients, helping marketers create high-performing social content [4] - Mavely operates as the Everyday Influencer Platform®, driving significant sales for brand partners through a performance-driven approach to influencer marketing [5] - Mavely's network of creators generates hundreds of millions of dollars in sales annually, providing attributable data from post to purchase [5]

Company Overview - Nu Skin Enterprises (NYSE: NUS) has experienced a significant decline, reaching multi-year lows at approximately $6 per share [1] - The company has faced revenue declines and increasing competition, compounded by various economic and industry-related challenges [1] Investment Perspective - The article reflects a value investing approach, focusing on identifying bargains in any market, particularly in emerging markets [1] - The investor emphasizes an owner-mindset and tends to overlook macroeconomic noise, prioritizing company fundamentals over economic forecasts [1]

Core Insights - Nu Skin Enterprises, Inc. (NUS) is focusing on growth through strategic initiatives, including product launches and the expansion of its Rhyz business, while facing macroeconomic challenges [1][8]. Product Innovations - The launch of MYND360, a new line of clinically validated nutritional formulas aimed at cognitive well-being, reflects the company's commitment to aligning with consumer preferences [1]. - Nu Skin's second-quarter 2024 results highlighted positive contributions from new products such as ageLOC, WellSpa IO, and RenewSpa IO, which are integral to the company's growth strategy [2]. Rhyz Business Performance - The Rhyz business has shown remarkable growth, with a 32.3% revenue increase in Q2 2024, contributing 15% to total enterprise revenues and expected to rise to 20-25% by 2025 [3][4]. Financial Challenges - Nu Skin's Q2 2024 revenues fell 12.2% year-over-year to $439.1 million due to macroeconomic headwinds and pressures in the direct selling industry [6]. - The company has revised its 2024 revenue guidance to a range of $1.73-$1.81 billion, indicating a decline of 12-8% from the previous year [7]. Future Outlook - For Q3 2024, Nu Skin anticipates revenues between $430 million and $465 million, reflecting a decline of 14% to 7% from the same quarter last year [7]. - The company's ability to balance innovation with market realities will be crucial for sustaining growth amidst ongoing challenges [8].