Core Insights - Mavely, the Everyday Influencer Platform®, has demonstrated significant growth and financial achievements in the first half of 2024, solidifying its position in the influencer marketing industry [1][2] Business Growth and GMV Run Rate - Mavely has achieved a GMV (Gross Merchandise Value) run rate exceeding $675 million, reflecting over 175% growth compared to the previous year [2] - The current GMV run rate is based on a three-month average transaction volume from May to July 2024 [6] Creator Payouts - The company has distributed over $37 million in commissions, bonuses, campaign fees, and other incentives to creators, with over $16 million paid out in 2024 alone from January to July [2] Brand Partnerships - Mavely has added more than 250 new brands in 2024, increasing its total to over 1,250 brand partners, including notable names like ELEMIS, Etsy, and Samsung [2] Industry Momentum - The platform has facilitated over 5.6 million influencer-driven purchases and welcomed 35,000 new creators in 2024, indicating strong growth in the influencer marketing landscape [2] Awards and Recognition - Mavely has received accolades such as the Rakuten Advertising 2024 Golden Link Award for Best Influencer Marketing Strategy and the Chicago Innovation Awards, highlighting its leadership in the industry [4] Community Building Initiatives - The company has launched regional Mavely Meetups to foster a robust creator community, offering educational and networking opportunities for influencers and brands [5] Future Outlook - Mavely is committed to supporting creators and brands through innovative partnerships and continuous enhancements to user experience, aiming to set new industry standards [6]

Core Insights - Nu Skin Enterprises, Inc. has experienced a significant decline in its stock, down 27.7% over the past three months, compared to a 21.3% decline in the industry and a 1.2% growth in the Zacks Consumer Staples sector [1] - The company is facing macroeconomic challenges that have negatively impacted consumer spending on premium products, alongside pressures in the direct selling industry [2][4] - Management has revised its annual revenue guidance for 2024 to a range of $1.73-$1.81 billion, indicating a decline of 12-8% from the previous year [4] Financial Performance - In Q2 2024, Nu Skin's revenues fell 12.2% year over year to $439.1 million, with a constant-currency decline of 8% [2] - The number of sales leaders decreased by 16% to 38,592, while the customer base dropped by 14% to 893,514 [2] - Paid affiliates decreased by 17% to 155,486, with an adjusted decline of 9% [2] Currency Impact - The company is significantly affected by foreign currency fluctuations, which contributed to a 4.2% negative impact on Q2 revenues [3] - Nu Skin anticipates unfavorable foreign currency impacts of around 4-3% on revenues for Q3 and the full year of 2024 [3] Future Projections - For Q3 2024, Nu Skin expects revenues between $430 million and $465 million, reflecting a decline of 14% to 7% from the previous year [4] - Adjusted earnings per share (EPS) for Q3 are projected to be between 15-25 cents, down from 56 cents in the same period last year [4] - The Zacks Consensus Estimate for 2024 EPS has decreased from $1.10 to 78 cents, indicating a negative sentiment among analysts [5] Strategic Initiatives - The company is pursuing strategic initiatives to enhance market presence and drive growth, including new product launches and leveraging its Rhyz business [6] - Despite these efforts, the combination of ongoing challenges and tighter guidance suggests a difficult path ahead for Nu Skin [6]

Core Viewpoint - Nu Skin Enterprises reported disappointing second-quarter results, with revenue and adjusted net income falling significantly year over year, leading to a decline in stock value despite exceeding analyst expectations for the quarter [1][2]. Financial Performance - Revenue for the second quarter decreased by 12% year over year to slightly over $439 million [2]. - Non-GAAP adjusted net income fell to $10.4 million ($0.21 per share) from nearly $27 million in the same quarter of 2023 [2]. - Despite the declines, the reported figures surpassed consensus analyst estimates of approximately $432 million in revenue and adjusted earnings of $0.17 per share [2]. Strategic Insights - CEO Ryan Napierski highlighted sequential gains in several markets, including the U.S. and Southeast Asia/Pacific, as a positive aspect of the performance [2]. - The strategic investment arm, Rhyz, experienced a 32% growth, contributing nearly $68 million in revenue during the second quarter [2]. Future Guidance - For the current third quarter, Nu Skin expects revenue between $430 million and $465 million, with adjusted per-share earnings of $0.15 to $0.25 [3]. - The collective analyst estimate for revenue is nearly $460 million, but the forecast for adjusted net income of $0.42 per share does not align with the company's guidance [3]. - For the full year of 2024, the company anticipates revenue between $1.73 billion and $1.81 billion, and adjusted net income per share of $0.75 to $0.95 [3].

Core Insights - Nu Skin Enterprises, Inc. (NUS) reported second-quarter 2024 results with earnings and net sales exceeding Zacks Consensus Estimates, but both metrics declined year over year due to a challenging macroeconomic environment [1] - The company is narrowing its annual guidance range in light of first-half 2024 performance and increasing foreign exchange headwinds [1] - Management is focusing on transforming its operating model and cost-saving measures to enhance its position as a leading integrated beauty, wellness, and lifestyle ecosystem [1] Financial Performance - Adjusted earnings were 21 cents per share, down from 54 cents in the prior year but above the Zacks Consensus Estimate of 18 cents [2] - Revenues totaled $439.1 million, a decline of 12.2% year over year, impacted negatively by 4.2% from foreign currency fluctuations; on a constant-currency basis, revenues fell 8% [2] - Rhyz revenues increased by 32.3% year over year, contributing positively to the overall revenue performance [2] - Sales leaders decreased by 16% to 38,592, while the customer base dropped by 14% to 893,514, and paid affiliates fell by 17% to 155,486 [2] Profitability Metrics - Gross profit was $307.2 million, down from $364.7 million in the previous year, with a gross margin of 70%, down from 72.9% [3] - Selling expenses decreased to $165.5 million from $185.2 million, representing 37.7% of revenues, up from 37% in the prior year [3] - General and administrative expenses were $117.9 million, down from $137 million, accounting for 26.9% of revenues, a slight decrease from 27.4% [3] - Adjusted operating margin contracted to 5.4% from 8.5% in the year-ago quarter [4] Regional Performance - Revenue declines were noted across various regions, including a 15.1% drop in the Americas and a 24.5% decline in Mainland China; however, other revenues surged by 100.8% year over year [5] Guidance and Future Outlook - Nu Skin anticipates 2024 revenues between $1.73 billion and $1.81 billion, indicating a decline of 12-8% from the previous year, with unfavorable foreign currency impacts of 4-3% [7] - Adjusted earnings per share (EPS) are projected to be between 75-95 cents, down from $1.85 in 2023 [7] - For Q3 2024, the company expects revenues between $430 million and $465 million, reflecting a decline of 14% to 7% year over year, with adjusted earnings of 15-25 cents per share [7] Financial Position - At the end of the quarter, the company had cash and cash equivalents of $224.3 million, long-term debt of $428.3 million, and total stockholders' equity of $686.2 million [6] - The company declared a cash dividend of 6 cents per share, payable on September 11, 2024 [6]

Revenue Performance - Revenue for Q2 2024 decreased by 12% to $439.1 million compared to $500.3 million in the prior-year period, with a 13% decline to $0.9 billion for the first six months of 2024[97] - Revenue for Q2 2024 decreased by 12% to $439.1 million compared to $500.3 million in the prior-year period[120] - Revenue for the first half of 2024 decreased by 13% to $0.9 billion compared to $1.0 billion in the prior-year period[120] - Foreign-currency fluctuations negatively impacted Q2 and first six months of 2024 revenue by 4.2% and 4.0%, respectively[97] - The Americas segment revenue was negatively impacted by 6% due to unfavorable foreign currency fluctuations in Q2 2024[109] - Constant-currency revenue change removes foreign-currency exchange rate impacts, enabling period-to-period performance comparisons[153] - Majority of revenue and expenses are recognized outside the U.S., with reported revenue and earnings impacted by U.S. dollar fluctuations[157] Segment Performance - Rhyz segments showed significant growth, with revenue increasing by 32.3% in Q2 and 43.3% in the first half of 2024, driven by acquisitions and organic growth[98] - Nu Skin Americas segment revenue declined by 21.1% in Q2 2024, while Mainland China saw a 26.8% decline[102] - Rhyz Investments Manufacturing segment revenue grew by 13.0% in Q2 2024, with Rhyz other segment revenue increasing by 186.1%[102] - Total Nu Skin segment contribution decreased by 23% in Q2 2024, while Rhyz Investments segment contribution declined by 550%[104] - Manufacturing segment revenue increased by 13.0% in Q2 2024 and 25.2% in the first half of 2024[118] Customer and Affiliate Metrics - Customers, Paid Affiliates, and Sales Leaders declined by 14%, 17%, and 16% year-over-year, respectively[97] - Total Customers decreased by 14% to 893,514 in June 2024 compared to 1,041,118 in June 2023[107] - Total Paid Affiliates decreased by 17% to 155,486 in June 2024 compared to 187,652 in June 2023[107] - Japan's Paid Affiliates decreased by 41% to 21,575 in June 2024 due to changes in eligibility requirements[107] Earnings and Profitability - Earnings per share for Q2 2024 decreased by 541% to $(2.38), primarily due to $149.4 million in restructuring and impairment charges[99] - Gross profit as a percentage of revenue decreased to 70.0% in Q2 2024 from 72.9% in the prior-year period[121] - Selling expenses as a percentage of revenue increased to 37.7% in Q2 2024 from 37.0% in the prior-year period[123] - General and administrative expenses decreased to $117.9 million in Q2 2024 from $137.0 million in the prior-year period[124] - Net loss of $(118.3) million in Q2 2024 compared to net income of $26.9 million in the prior-year period[132] Restructuring and Impairment Charges - Total charges under the workforce reduction program estimated at $20.0 million in cash severance, $2.2 million in other cash charges, and $8.2 million in non-cash charges, including $6.4 million in fixed asset impairments[126] - Non-cash goodwill impairment charge of $130.9 million recorded in Q2 2024 due to decline in stock price and market capitalization[127] - Impairment charge of $10.1 million for the BeautyBio retail asset group in Q2 2024[128] Cash Flow and Financial Position - Cash flow from operations increased to $54.5 million in the first six months of 2024, up from $13.4 million in the prior-year period[133] - Capital expenditures for 2024 estimated at $40–60 million, including Rhyz plant expansion and facility upgrades[134] - Outstanding borrowings under the revolving credit facility decreased to $90.0 million as of June 30, 2024, from $120.0 million as of December 31, 2023[136] - Quarterly cash dividends of $0.06 per share declared in February, May, and August 2024[138] - Non-U.S. cash and cash equivalents held as of June 30, 2024, totaled $170.1 million, down from $213.7 million as of December 31, 2023[139] Strategic Initiatives and Outlook - The company plans to launch MYND360, a new brand focused on cognitive health, in Q3 2024[98] - The company remains optimistic for the remainder of 2024, with key events like the Global Nu Skin L!VE in July and September 2024[98] - Revenue and profitability forecasts considered recent and historical performance, strategic initiatives, industry trends, and macroeconomic factors, with assumptions similar to those used by market participants[149] - Sensitivity analysis showed that a 5% reduction in annual EBIT or a 40 basis point increase in discount rates did not cause reporting units' fair values to fall below carrying values[151] Seasonal and Market Factors - Seasonal factors, such as local New Year celebrations in Asian markets, negatively impact Q1 revenue, while vacation patterns in Q3 affect direct selling[152] - Argentina subsidiary adopted highly inflationary accounting in 2018, with net sales contributing less than 2% of consolidated net sales as of June 30, 2024[158] - Foreign currency exposure is managed through exchange contracts and intercompany loans, with no material derivative contracts held as of June 30, 2024[159] Interest and Other Expenses - Interest expense increased to $6.7 million in Q2 2024, up from $5.8 million in the prior-year period[129]

Company Performance - Nu Skin Enterprises reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.54 per share a year ago, indicating a 61.11% year-over-year decline [1] - The company achieved revenues of $439.08 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.11%, but down from $500.26 million in the same quarter last year, reflecting a 12.23% decrease [1] - Over the last four quarters, Nu Skin has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [1] Market Context - Nu Skin shares have declined approximately 46% since the beginning of the year, contrasting with the S&P 500's gain of 9% [2] - 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 [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $465.7 million, and for the current fiscal year, it is $1.10 on revenues of $1.77 billion [4] - The cosmetics industry, to which Nu Skin belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, which may negatively impact stock performance [5] - Estee Lauder, a competitor in the same industry, is expected to report quarterly earnings of $0.25 per share, reflecting a year-over-year change of +257.1%, with revenues projected at $3.83 billion, up 6.3% from the previous year [5][6]

Financial Performance - Q2 2024 revenue was $439.1 million, down 12.2% from $500.3 million in Q2 2023, with a 4.2% negative impact from foreign exchange[5]. - Earnings per share (EPS) for Q2 2024 was $(2.38), or $0.21 excluding restructuring and impairment charges, compared to $0.54 in Q2 2023[2]. - Operating loss for the second quarter of 2024 was $125.6 million, compared to an operating income of $42.5 million in Q2 2023[27]. - Net loss for the second quarter of 2024 was $118.3 million, compared to a net income of $26.9 million in the same period last year[27]. - Gross profit for the second quarter of 2024 was $307.2 million, down from $364.7 million in Q2 2023, reflecting a gross margin decline[27]. - Adjusted operating income for the six months ended June 30, 2024, was $39,749 thousand, compared to $68,357 thousand for the same period in 2023[32]. - Adjusted net income for the three months ended June 30, 2024, was $10,377 thousand, down from $26,892 thousand in the prior year[36]. - The effective tax rate for the three months ended June 30, 2024, was 10.2%, compared to 27.5% for the same period in 2023[34]. - The operating margin for the three months ended June 30, 2024, was (28.6)%, compared to 8.5% for the same period in 2023[32]. - Diluted earnings per share for the three months ended June 30, 2024, was $(2.38), compared to $0.54 for the same period in 2023[36]. Customer Metrics - Customer count decreased by 14% to 893,514, while paid affiliates fell by 17% to 155,486[2]. - The number of total customers decreased by 14% year-over-year, from 1,041,118 in Q2 2023 to 893,514 in Q2 2024[22]. - The number of paid affiliates decreased by 17% year-over-year, from 187,652 in Q2 2023 to 155,486 in Q2 2024[23]. Revenue Guidance - The company expects Q3 2024 revenue to be between $430 million and $465 million, reflecting a decline of 14% to 7% year-over-year[8]. - Full-year 2024 revenue guidance is narrowed to $1.73 billion to $1.81 billion, down 12% to 8% from 2023[9]. - Total revenue for Nu Skin in the second quarter of 2024 was $439.1 million, a decrease of 12.2% compared to $500.3 million in the same period of 2023[27]. - Revenue for the three months ended June 30, 2024, was $439,081 thousand, down from $500,257 thousand in the prior year[32]. Impairment and Restructuring - The company recorded a non-cash impairment charge of $141 million for goodwill and other intangibles due to stock price decline[7]. - The company reported a significant increase in restructuring and impairment expenses, totaling $149.4 million in Q2 2024, compared to no such expenses in Q2 2023[27]. - Restructuring and impairment expenses for the three months ended June 30, 2024, amounted to $149,350 thousand[34]. Strategic Initiatives - The company plans to enhance its developing market strategy, starting with Latin America and parts of Southeast Asia in the second half of 2024[4]. - A new Nu Skin/Mavely app is anticipated for launch in the second half of 2024, integrating over 1,200 brands and 70,000 influencers[3]. - The company plans to implement changes in eligibility requirements for rewards within its compensation structure over the next several quarters[24]. Asset Management - Total assets decreased from $1.8 billion at the end of 2023 to $1.6 billion as of June 30, 2024[29]. - Cash and cash equivalents decreased from $256.1 million at the end of 2023 to $224.3 million as of June 30, 2024[29].

Core Viewpoint - Nu Skin Enterprises, Inc. is facing challenges in customer and affiliate acquisition due to a tough macroeconomic environment and volatile foreign currency movements, which are expected to persist into 2024 [1][2] Financial Projections - For 2024, Nu Skin anticipates revenues between $1.73 billion and $1.87 billion, indicating a decline of 12% to 5% from the previous year [2] - The company expects adjusted EPS to be between 95 cents and $1.35, down from $1.85 in 2023 [2] - For Q2 2024, revenues are projected to be between $420 million and $455 million, reflecting a decline of 16% to 9% year-over-year [2] - Adjusted earnings for Q2 are expected to be between 10 and 20 cents per share, compared to 54 cents in the same period last year [2] Strategic Initiatives - Nu Skin is implementing its Nu Vision 2025 strategy to become a leading integrated beauty and wellness company, focusing on personalized beauty and wellness through the EmpowerMe strategy and a digital platform [3] - The EmpowerMe strategy aims to enhance product consumption and attract new customers and affiliates, thereby increasing recurring revenues and lifetime value [3] Product Innovation - The company is launching innovative beauty devices, contributing to its growth, with successful products like ageLOC WellSpa iO and Mind 360 targeting the brain health market [4] - Nu Skin plans to enter the Indian market, which is a rapidly growing direct-selling market, to strengthen its customer base [4] Rhyz Business Growth - The Rhyz business is a key component of Nu Skin's strategy, showing nearly 60% revenue growth in Q1 2024 and accounting for 15% of total revenues, with expectations to reach 20% to 25% by 2025 [5][6] Market Position and Valuation - Nu Skin's shares have decreased by 11.5% over the past three months, while the industry has seen a decline of 19.5% [7] - The company's forward 12-month price-to-earnings ratio is 8.49, significantly lower than the industry average of 24.62 and the S&P 500's 21.91, indicating potential undervaluation [7] - Nu Skin holds a Value Score of A, suggesting strong potential for price appreciation based on fundamental metrics [7]

Core Viewpoint - Nu Skin Enterprises, Inc. is facing significant challenges due to persistent macroeconomic headwinds, impacting customer and affiliate acquisition, and leading to a negative outlook for 2024 [1][2][4]. Macroeconomic Challenges - The company has been affected by inflationary pressures on consumer spending for premium products, resulting in a 13.3% year-over-year decline in quarterly revenues to $417.3 million [2]. - On a constant-currency basis, revenues fell by 9.5%, with sales leaders down 12% year over year to 38,609, and the customer base dropping 19% to 875,261 [2]. - Paid affiliates decreased by 30% to 154,171, with an adjusted basis showing a 14% decline [2]. Currency Impact - Nu Skin's revenues in the first quarter of 2024 were adversely affected by foreign currency fluctuations, which had a negative impact of 3.8% [3]. - The company anticipates unfavorable foreign currency impacts of 2-3% on 2024 revenues and 4-3% on second-quarter revenues [3]. Future Outlook - Management expects macroeconomic hurdles to persist, reaffirming a negative outlook for 2024 with projected revenues between $1.73 billion and $1.87 billion, indicating a decline of 12-5% from the previous year [4][5]. - Adjusted EPS is expected to be between 95 cents and $1.35, down from $1.85 in 2023 [5]. - For the second quarter of 2024, revenues are projected to be between $420 million and $455 million, reflecting a decline of 16% to 9% year-over-year [5]. - Adjusted earnings for the second quarter are expected to be between 10-20 cents per share, compared to 54 cents in the same period last year [5]. Stock Performance - Nu Skin's shares have decreased by 38.5% over the past six months, contrasting with the industry's decline of 17.4% [5].

Core Viewpoint - Nu Skin Enterprises reported a decline in both revenue and earnings for Q1 2024, primarily impacted by foreign currency fluctuations, while managing costs effectively to support its bottom line [2][5]. Financial Performance - Adjusted earnings were 9 cents per share, down from 37 cents year-over-year, but exceeded the Zacks Consensus Estimate of 5 cents [2]. - Revenues totaled $417.3 million, a 13.3% decline year-over-year, missing the Zacks Consensus Estimate of $431 million, with a negative impact of 3.8% from foreign currency [2][3]. - Gross profit decreased to $294.1 million, with a gross margin of 70.5%, down from 72.3% in the previous year [3]. Customer and Sales Metrics - Sales leaders decreased by 12% to 38,609, while the customer base fell by 19% to 875,261 [3]. - Paid affiliates dropped by 30% to 154,171, with an adjusted decline of 14% [3]. Cost Management - Selling expenses reduced to $153.5 million from $188.1 million, representing 36.8% of revenues, down from 39.1% [3]. - General and administrative expenses decreased to $124.6 million, accounting for 29.9% of revenues, up from 27.8% [4]. Regional Revenue Performance - Revenue declines were noted across various regions, with the Americas down 20.1% and Mainland China down 39.3% [4]. - Other revenues surged by 684.3% year-over-year [4]. Financial Position and Guidance - Cash and cash equivalents stood at $212.5 million, with long-term debt of $453.2 million and total stockholders' equity of $810.2 million [5]. - For 2024, Nu Skin anticipates revenues between $1.73 billion and $1.87 billion, indicating a 12-5% decline from the previous year [6]. - Adjusted EPS guidance for 2024 is set between 95 cents and $1.35, down from $1.85 in 2023 [7]. Estimate Trends - There has been a downward trend in consensus estimates, with a significant shift of -52.7% noted [8][10]. Industry Comparison - Nu Skin operates within the Zacks Cosmetics industry, where competitor Helen of Troy reported a slight revenue increase of 1% in its latest quarter [11].