Core Insights - Nu Skin Enterprises, Inc. is expected to report a decline in revenue for the third quarter of 2025, with the Zacks Consensus Estimate at $374.2 million, reflecting a 13% decrease from the previous year [1] - Earnings per share are projected to remain unchanged at 30 cents, indicating a significant increase of 76.5% compared to the same quarter last year [1] Revenue Challenges - The company is facing ongoing revenue pressure due to macroeconomic and operational challenges, particularly in mature markets such as North America, China, and parts of Southeast Asia, where consumer sentiment is weak [2][10] - A decline in affiliate and customer counts has further limited sales momentum [2] Operational Efficiency - Despite revenue challenges, Nu Skin's earnings are anticipated to benefit from improved operational efficiency and cost management initiatives under Project Accelerate [3] - The company is achieving structural savings through portfolio optimization, selling-expense realignment, and transitioning to shared service and digital infrastructure models [3] Margin Improvement - Consistent margin improvement has allowed the company to maintain profitability despite declining sales volumes [4] - Favorable shifts in the product mix and prudent expense control are expected to support earnings in the third quarter [4][5] Future Outlook - While revenue pressures are likely to persist, the company's enhanced cost structure and operational optimization initiatives are expected to support earnings growth and lay the groundwork for a gradual recovery [5]

Core Insights - Nu Skin Enterprises has been recognized as the leading global retail brand in the beauty and health instrument sector for two consecutive years in 2023 and 2024, attributed to its long-term investment in R&D, precise market insights, and commitment to product quality and social responsibility [1][2] Group 1: Product Strength and Market Position - The success of Nu Skin is supported by its comprehensive product matrix, including the ageLOC series and TRME weight management program, which covers facial, body, and overall health [1] - The company has achieved significant recognition beyond commercial success, extending to a profound commitment to corporate responsibility [1] Group 2: Environmental and Social Responsibility - In 2024, Nu Skin China released its ESG report, marking a significant transition from CSR to ESG reporting [1] - The Shanghai Fengxian Nu Skin Greater China Innovation Headquarters has been awarded the "Zero Waste Factory" title, showcasing its green and low-carbon management and operational systems [1] - The factory employs green technologies such as solar power and wastewater treatment systems to achieve energy conservation and emission reduction, while ensuring traceable quality management through innovative digital methods [1] Group 3: Community Engagement and Health Initiatives - The "Health Action, Community Leadership" initiative launched by Nu Skin in collaboration with "Le Shan Hui" volunteers aims to provide health technology to the public, particularly targeting middle-aged and urban white-collar workers [2] - The initiative has successfully conducted 214 events, providing over 9,500 community residents and employees with a full chain of nutrition and health services [2] - Nu Skin plans to introduce the PRYSM iO hyperspectral smart scanner, which will serve as a personal health advisor, weight management coach, and family doctor, enabling users to obtain their Body Defense Index results in just 15 seconds [2] Group 4: Vision for the Future - Nu Skin is leveraging strong technological innovation and deep humanistic care to build a healthier and better future [3]

Company Overview - Nu Skin Enterprises (NUS) shares increased by 6.2% to close at $12.84, with trading volume significantly higher than usual, contrasting with a 0.3% loss over the past four weeks [1] - The company operates in the cosmetics industry and utilizes a direct-selling model for its skin care and nutritional products [3][6] Strategic Execution - The company's growth is attributed to operational efficiency, innovation focus, and international expansion, with the Rhyz Manufacturing segment showing consistent growth [2] - The upcoming AI-powered Prysm iO device is expected to enhance customer engagement and subscriptions, while lessons from fast-growing markets will guide international expansion [2] Financial Performance - Nu Skin is projected to report quarterly earnings of $0.30 per share, reflecting a year-over-year increase of 76.5%, while revenues are expected to be $374.2 million, a decrease of 13% from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a potential lack of momentum in earnings estimate revisions [5] Market Position - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6] - In comparison, European Wax Center, another company in the same industry, has also maintained a Zacks Rank of 3 and is expected to report an EPS of $0.14, a 16.7% increase year-over-year [6][7]

Core Viewpoint - The academic exchange conference focused on the integration of technology and nutrition management, aiming to enhance public health through innovative solutions and collaborative efforts among various stakeholders [1][3][19]. Group 1: Policy and Technological Empowerment - The conference highlighted the foundational role of nutrition in improving national health and quality of life, with emphasis on the need for government, enterprises, and society to work together in implementing the National Nutrition Plan [6][15]. - The "Healthy China 2030" initiative sets clear and quantifiable goals, aligning with the strategic direction of companies like Nu Skin, which focuses on leveraging advanced technologies such as gene expression science and artificial intelligence in health management [5][19]. Group 2: Clinical and Practical Insights - Experts discussed the importance of clinical nutrition interventions and the need for innovative approaches in health management, particularly in the context of chronic disease prevention [10][12]. - The concept of "hidden hunger" was introduced, emphasizing the need for balanced diets and healthy lifestyles to mitigate chronic disease risks [8][12]. Group 3: Technological Innovations - Nu Skin introduced the PRYSM iO hyperspectral scanner, a non-invasive device that measures skin carotenoid levels to assess antioxidant capacity and nutritional status, representing a shift towards scientific quantification in health management [12][13]. - The device's development is based on over 40 years of research and aims to provide a portable tool for community and family health management [12][19]. Group 4: Collaborative Efforts and Future Directions - The conference underscored the need for collaboration among various sectors, including media, healthcare, and enterprises, to promote proactive health management and enhance public understanding of nutrition [15][16]. - Future initiatives will focus on expanding insurance coverage for nutritional services and improving access to quality healthcare resources in communities [15][16].

Core Insights - The academic exchange conference focused on innovative technologies in precision nutrition, chronic disease prevention, and the value of clinical nutrition interventions, aiming to create a collaborative innovation platform for nutrition health management and industry upgrades [1][3]. Group 1: Industry Trends - The "Healthy China 2030" initiative sets clear and quantifiable goals, positioning China at the forefront of global health strategies, with companies like Nu Skin aligning their strategic direction with this national plan [3]. - The conference highlighted the need for collaboration among government, enterprises, and society to implement the National Nutrition Plan, emphasizing the importance of innovation in producing high-quality health foods [3]. Group 2: Technological Innovations - Nu Skin introduced the PRYSM iO hyperspectral scanner, which allows for non-invasive measurement of skin carotenoid levels, reflecting antioxidant capacity and nutritional status, thus transitioning nutritional health management from vague assessments to scientific quantification [5][6]. - The scanner utilizes Raman spectroscopy principles and AI-driven machine learning to generate a body defense index based on skin carotenoid levels, addressing the gap between health expectancy and actual lifespan [5][6]. Group 3: Clinical Perspectives - Clinical nutrition should follow a "5-step therapy" approach, focusing on tailored nutritional education and supplementation for specific populations such as cancer patients, the elderly, and pregnant women [4][5]. - Experts emphasized the importance of balanced diets and healthy lifestyles in reducing chronic disease risks, advocating for adherence to the 2022 Dietary Guidelines for Chinese Residents [4].

Core Insights - The meeting between Shanghai's Commerce Commission Director Zhu Min and Nu Skin Enterprises CEO Ritch N. Wood highlighted the ongoing development of Shanghai as an international consumption center, emphasizing the city's vast consumer market and growth opportunities for both domestic and international brands [1][3]. Group 1: Shanghai's Consumer Market - Shanghai's consumer market is expanding, driven by initiatives like "First Launch Shanghai" which supports the debut of brands and stimulates new consumption dynamics [3]. - The beauty and health industries in Shanghai are experiencing rapid growth, with continuous market size expansion and emerging growth points such as online sales and senior consumer segments [3]. - Future increases in residents' income and heightened health awareness among consumers are expected to further drive industry upgrades [3]. Group 2: Nu Skin Enterprises' Commitment - Nu Skin has been operating in Shanghai for 25 years, establishing its Greater China headquarters and R&D center in the city, which is viewed as a global strategic hub due to its favorable business environment and concentration of innovation and talent [3]. - The company expressed its intention to increase investments in Shanghai, actively participate in consumption promotion activities, and launch new products tailored to the local market [3]. - Nu Skin aims to contribute significantly to the construction of Shanghai as an international consumption center by leveraging new opportunities arising from industry upgrades [3].

Core Insights - Stonegate Capital Partners has initiated coverage on Nu Skin Enterprises Inc. (NUS) [1] - NUS reported revenue of $386.1 million, adjusted net income of $21.1 million, and adjusted EPS of $0.43, exceeding guidance [1] - The Rhyz Manufacturing segment experienced a 17% year-over-year revenue growth [1] - Gross margin for the quarter was 68.8%, reflecting a quarter-over-quarter expansion of 106 basis points from Q1 2025 [1] - Adjusted net income grew by 103.5% year-over-year, driven by revenue growth and operational optimization [1] - The company is positioned for a solid second quarter of 2025 with continued net income margin expansion [1] Financial Performance - Revenue was at the high end of the guidance range, which was between $355.0 million and $390.0 million [1] - Adjusted EPS of $0.43 significantly outpaced the guidance range of $0.20 to $0.30 [1] - Latin America revenue increased by 107% year-over-year [7] - The company achieved a net cash position ahead of schedule [7] Strategic Developments - The expansion in India and the launch of the Prysm iO device are on track [7]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents unaudited consolidated financial statements and management's analysis of financial performance [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, comprehensive income statements, stockholders' equity statements, and cash flow statements, along with detailed notes explaining significant accounting policies, specific financial items, and segment information for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity at specific dates Consolidated Balance Sheet Highlights (U.S. dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $264,159 | $186,883 | | Total current assets | $571,553 | $538,599 | | Total assets | $1,443,693 | $1,468,914 | | Total current liabilities | $283,906 | $296,607 | | Total liabilities | $655,939 | $817,459 | | Total stockholders' equity | $787,754 | $651,455 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This section details the company's financial performance, including revenues, expenses, and net income Consolidated Statements of Income Highlights (U.S. dollars in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $386,138 | $439,081 | $750,628 | $856,387 | | Gross profit | $265,733 | $307,177 | $512,694 | $601,241 | | Operating income (loss) | $30,780 | $(125,557) | $20,877 | $(116,735) | | Net income (loss) | $21,119 | $(118,258) | $128,634 | $(118,791) | | Basic Net income (loss) per share | $0.43 | $(2.38) | $2.59 | $(2.39) | - The company reported a significant turnaround from a **net loss in 2024** to **net income in 2025**, primarily due to the absence of large restructuring and impairment expenses and a **gain on the sale of a business**[11](index=11&type=chunk)[84](index=84&type=chunk) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents total equity changes from non-owner sources, including net income and other comprehensive income items Consolidated Statements of Comprehensive Income Highlights (U.S. dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $21,119 | $(118,258) | $128,634 | $(118,791) | | Foreign currency translation adjustments | $11,398 | $(4,875) | $13,841 | $(14,979) | | Comprehensive income (loss) | $30,911 | $(124,646) | $139,334 | $(135,780) | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity accounts, reflecting net income, dividends, and stock transactions Changes in Stockholders' Equity (U.S. dollars in thousands) | Metric | Balance at April 1, 2025 | Balance at June 30, 2025 | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------------------- | :----------------------- | :----------------------- | :------------------------- | :----------------------- | | Total Stockholders' Equity (3 months) | $753,969 | $787,754 | - | - | | Total Stockholders' Equity (6 months) | - | - | $651,455 | $787,754 | | Net income (6 months) | - | - | - | $128,634 | | Cash dividends (6 months) | - | - | - | $(5,966) | | Repurchase of Class A common stock (6 months) | - | - | - | $(5,012) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, U.S. dollars in thousands) | Metric | 2025 | 2024 | | :--------------------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $36,184 | $54,525 | | Net cash provided by (used in) investing activities | $190,337 | $(17,793) | | Net cash used in financing activities | $(157,027) | $(60,772) | | Net increase (decrease) in cash and cash equivalents | $77,276 | $(31,807) | | Cash and cash equivalents, end of period | $264,159 | $224,250 | - Investing activities saw a **significant inflow in 2025** due to proceeds from the sale of business, net, totaling **$193,725 thousand**[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements [Note 1. The Company](index=9&type=section&id=Note%201.%20The%20Company) This note describes the company's business operations, primary brands, and revenue reporting segments - Nu Skin Enterprises, Inc. is a holding company, with Nu Skin as the primary operating unit, developing and distributing beauty and wellness products under brands like Nu Skin, Pharmanex, and ageLOC[21](index=21&type=chunk) - The company reports revenue from nine segments: seven geographic Nu Skin segments (Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, South Korea, Hong Kong/Taiwan) and two Rhyz segments (Manufacturing and Rhyz Other)[21](index=21&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=9&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and policies used in preparing the consolidated financial statements - Unaudited consolidated financial statements are prepared in accordance with US GAAP for interim financial information[22](index=22&type=chunk) - ASU 2023-09 (Income Taxes) is effective for annual periods beginning January 1, 2025, requiring disaggregated income tax disclosures[23](index=23&type=chunk) - ASU 2024-03 (Income Statement) is effective for fiscal years beginning after December 15, 2026, requiring specific cost and expense disaggregation disclosures[24](index=24&type=chunk) Inventories, net (U.S. dollars in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :---------------- | | Raw materials | $101,469 | $121,929 | | Finished goods | $78,908 | $68,313 | | Total Inventory, net | $180,377 | $190,242 | Inventory Reserves (U.S. dollars in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :----------------------------- | :----------------------------- | | Additions | $5,800 | $3,520 | | Write-offs | $(14,110) | $(16,615) | | Ending Balance | $75,696 | $70,283 | [Note 3. Held for Sale](index=10&type=section&id=Note%203.%20Held%20for%20Sale) This note details the sale of the Mavely entity, including proceeds, gain on sale, and assets/liabilities held for sale - The Company completed the sale of its Mavely entity on

Financial Data and Key Metrics Changes - The company reported revenue of $386.1 million for Q2 2025, achieving the high end of its guidance range and significantly exceeding the earnings per share forecast with $0.43, well above the guidance range of $0.20 to $0.30 [6][18] - Gross margin for Q2 was 68.8%, down from 70% in the prior year, while the core Nu Skin business gross margin improved to 77.5%, up 140 basis points year over year [18][19] - Operating margin improved to 8%, up from an adjusted operating margin of 5.4% in the prior year, reflecting operational efficiency efforts [20] Business Line Data and Key Metrics Changes - The Rise segments performed well, with manufacturing reporting a 17% year-over-year increase [7][14] - Latin America showed strong year-over-year growth, exceeding 100% in revenue, customers, and sales leaders, while North America faced declines due to macro pressures [6][12] - Japan reported growth, benefiting from a strong subscription-based wellness business, while South Korea and China experienced revenue declines due to economic challenges [7][12] Market Data and Key Metrics Changes - Latin America continues to outperform expectations, while North America, China, and Korea are under scrutiny for potential impacts on guidance [26][27] - Europe and Africa showed improving trends in customer engagement, and the Pacific region experienced growth, although Southeast Asia remained sluggish [7][12] Company Strategy and Development Direction - The company is focused on launching its innovative wellness platform, Prism IO, which will provide personalized health insights and product recommendations [8][10] - The developing market strategy is crucial, with significant progress in Latin America and plans for a premarket opening in India by Q4 2025 [12][13] - Project Accelerate aims to improve operational efficiencies and expand margins, with a target gross margin of 78% for the core business [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted the importance of disciplined cost management [20][22] - The company anticipates revenue for Q3 2025 to be between $360 million and $390 million, with full-year revenue projected at $1.48 billion to $1.55 billion [22][23] - Management remains focused on driving operational performance and maintaining a strong financial position despite ongoing global challenges [23] Other Important Information - The company achieved a net cash positive position for the first time in over four years, ending the quarter with $264 million in cash [21] - A dividend of approximately $3 million was returned to shareholders, with $157.4 million remaining under the current share repurchase authorization [21] Q&A Session Summary Question: Thoughts on guidance and potential impacts from initiatives or geographies - Management noted that Latin America is overperforming, while North America is facing challenges, particularly in Korea and China due to macro uncertainties [26][27] Question: Insights on Latin America's performance and future potential - Management highlighted a simplified operational model and a three-pronged strategy focusing on product, business model, and operational efficiency as key to success in Latin America [30][31] Question: Future margin improvement opportunities - Management indicated ongoing efforts in inventory management and selling expense optimization, with confidence in continued margin improvements [34][35] Question: Capital allocation priorities for the second half of the year - Management emphasized investing in growth opportunities, particularly in Prism IO and developing markets like India, while also servicing debt and maintaining dividends [36][39]

Financial Performance - Q2 2025 revenue was $386.1 million, a decrease of 12.1% year-over-year[6] - Q2 2025 EPS was $0.43, compared to $(2.38) in Q2 2024, or $0.21 excluding impairment and other charges[6] - The company forecasts Q3 2025 revenue to be between $360 million and $390 million, a decrease of 16% to 9% year-over-year[27] - The company projects 2025 revenue to be between $1.48 billion and $1.55 billion, a decrease of 15% to 11% year-over-year[27] - The company anticipates 2025 EPS to be between $3.05 and $3.25, or $1.15 to $1.35 excluding the Mavely gain and other charges[27] Regional Performance - Mainland China accounted for 14% of Q1 revenue distribution[6] - Americas accounted for 7% of Q1 revenue distribution[6] - Revenue from Mainland China decreased by 18% to $53.2 million[10] - Revenue from Americas decreased by 14% to $72.9 million[10] Customer and Affiliate Metrics - Total customers decreased by 14% year-over-year[6] - Total paid affiliates decreased by 16% year-over-year[6] - Total sales leaders decreased by 23% year-over-year[6]