Revenue Performance - Revenue for Q3 2023 decreased 7% to $498.8 million, compared to $537.8 million in Q3 2022, and for the first nine months of 2023, revenue decreased 13% to $1.5 billion from $1.7 billion in the prior-year period[99]. - The decline in revenue was primarily driven by macroeconomic pressures affecting consumer spending and customer acquisition, with Customers, Paid Affiliates, and Sales Leaders declining 21%, 23%, and 6% year-over-year, respectively[99][100]. - Revenue from the Americas segment decreased 30% in Q3 2023 to $91.7 million, while the Asia/Pacific segment saw an 18% decline to $68.7 million[104]. - Total Nu Skin revenue for Q3 2023 was $498.8 million, a 7% decrease, while total revenue for the first nine months was $1.48 billion, down 13%[104]. - Mainland China revenue was negatively impacted by 6% due to unfavorable foreign currency fluctuations, despite a year-over-year increase in sales leaders and paid affiliates[114]. - Southeast Asia/Pacific reported a significant decline in revenue, with ageLOC Meta generating $17.1 million in the first nine months of 2023, down from $40.3 million in the same period of 2022[116]. Earnings and Profitability - Earnings per share for Q3 2023 decreased 45% to $(0.74), compared to $(0.51) in Q3 2022, and for the first nine months, it decreased 97% to $0.03 from $0.94[101]. - The third quarter of 2023 included an inventory write-off charge of $65.7 million, contributing to the decline in earnings per share[101]. - Gross profit as a percentage of revenue fell to 58.6% for the third quarter of 2023, down from 67.7% in the prior-year period[127]. - In Q3 2023, the company reported a net loss of $37.0 million, compared to a net loss of $25.4 million in Q3 2022[135]. - For the first nine months of 2023, net income was $1.3 million, a significant decrease from $47.6 million in the same period of 2022[135]. - The effective tax rate for Q3 2023 was (7.3)%, compared to 12.3% in Q3 2022, reflecting a decline in profitability[134]. Customer Metrics - Total customers decreased by 21% year-over-year to 978,907 in September 2023, down from 1,239,384 in September 2022[110]. - The number of Customers, Paid Affiliates, and Sales Leaders declined significantly, impacting overall business performance[108][109]. - The Americas segment experienced a decline in revenue, customers, paid affiliates, and sales leaders due to macroeconomic challenges, with a 27% decrease in customers[112]. - South Korea's paid affiliates decreased by approximately 17,000 due to changes in eligibility requirements for rewards[117]. Product Performance - The new product ageLOC TRMe generated approximately $30.2 million in revenue for Q3 2023 and $66.3 million for the first nine months, while ageLOC WellSpa iO generated $35.6 million in Q3 2023[100]. - The Manufacturing segment under Rhyz Investments reported a 20% increase in revenue for Q3 2023 to $49.7 million, while Rhyz other segment revenue surged 1,910% to $10.8 million[104]. - The Manufacturing segment revenue increased by 20% for the third quarter of 2023, driven by new customer onboarding and automation efforts[123]. Cash Flow and Expenditures - The company generated $64.5 million in cash from operations in the first nine months of 2023, down from $82.5 million in the prior-year period[136]. - As of September 30, 2023, cash and cash equivalents were $250.0 million, a decrease from $278.5 million as of December 31, 2022[136]. - Capital expenditures for the nine months ended September 30, 2023, were $38.1 million, with an estimated total of $50–60 million for the year[138]. - The new manufacturing plant in Mainland China is expected to begin production in Q4 2023, with total expenditures for the project projected at approximately $60 million[138]. Strategic Initiatives - The company plans to continue launching new products in Q4 2023, with previews in Mainland China for ageLOC TRMe and ageLOC WellSpa iO[100]. - The company expects total charges of approximately $15–$25 million in severance costs for the fourth quarter of 2023 as part of its strategic plan[131]. Foreign Currency and Market Risks - A significant portion of the company's revenue and expenses are recognized outside of the United States, with local currencies considered the functional currency for most subsidiaries[154]. - The subsidiary in Argentina adopted highly inflationary accounting as of July 1, 2018, with net sales from Argentina being less than 2% of consolidated net sales for the three- and nine-month periods ended September 30, 2023 and 2022[155]. - The company does not use derivative financial instruments for trading or speculative purposes and regularly monitors foreign currency risks[156]. - The company continues to evaluate its foreign currency hedging policy to reduce exposure to fluctuations in foreign currency exchange rates[156]. - A weakening of the U.S. dollar positively impacts reported revenue and earnings, while a strengthening negatively impacts them[154]. - The uncertainty of exchange rate fluctuations makes it difficult to predict their effect on future business and financial condition[154].

Financial Data and Key Metrics Changes - In Q2 2023, the company reported revenue of $500.3 million and earnings per share (EPS) of $0.54, both in line with guidance and reflecting an 8% year-over-year growth in Mainland China [5][17] - The gross margin for Q2 was 72.9%, down 70 basis points year-over-year, while the operating margin was 8.5%, compared to 9.2% in the prior year [17] - The company anticipates Q3 2023 revenue between $500 million and $540 million, with EPS guidance of $0.54 to $0.69 [20] Business Line Data and Key Metrics Changes - The growth in China was offset by softness in other markets, particularly in Southeast Asia Pacific, Europe, Africa, and Latin America, due to macroeconomic pressures [6] - The Americas and South Korea launched new products, but performance was below expectations due to declines in channel dynamics [7] - The RISE ecosystem reported a 33% year-over-year growth, indicating strong performance in manufacturing [12] Market Data and Key Metrics Changes - The company experienced a negative foreign currency impact of 3% or $16.4 million in Q2 [17] - The Americas and South Korea markets faced challenges in customer acquisition due to aggressive price increases [6] Company Strategy and Development Direction - The company is focused on its multiyear transformation, "Nu Vision 2025," aiming to become a leading integrated beauty and wellness company [4] - Key initiatives include the launch of the ageLOC WellSpa iO device and the EmpowerStart program to enhance affiliate-powered social commerce [8][9] - The acquisition of BeautyBio and a majority stake in Life DNA reflects the company's commitment to personalization and innovation in the beauty and wellness space [13][14] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about growth in China, citing positive trends in affiliate counts and product uptake [5][26] - The company acknowledges ongoing macroeconomic challenges but believes future opportunities will expand as strategic investments are made [20][21] Other Important Information - The company is implementing a new e-commerce platform, Equinox, to enhance operational efficiencies and customer experience [11] - Adjustments to eligibility requirements for rewards among paid affiliates are being made to focus on those actively building a consumer base [10] Q&A Session Summary Question: Insights on the BeautyBio acquisition - Management highlighted the strategic importance of BeautyBio's IP and capabilities, with expected revenue uplift of $10 million to $15 million in the second half of the year [24][25] Question: Growth in China and affiliate count - Management expressed cautious optimism regarding growth in China, attributing it to improved channel dynamics and product uptake [26][27] Question: Full year guidance adjustments - The company adjusted its guidance due to stronger-than-expected foreign currency impacts and macroeconomic evaluations [29][30] Question: Factors for expected growth in Q4 - Key factors include positive trends in China and the anticipated impact of the WellSpa iO product launch [34][35] Question: U.S. consumer behavior changes - Management noted trade-off decisions among U.S. consumers, impacting higher-end product sales [41][42] Question: Distribution strategy for BeautyBio - BeautyBio operates independently and is not a direct seller; the company plans to explore synergies without full integration [49][50] Question: TRMe product launch status - The TRMe product is rolling out market by market, with a cautious approach to the U.S. market due to competitive dynamics [55][56]

Revenue Performance - Revenue for Q2 2023 decreased 11% to $500.3 million, compared to $560.6 million in Q2 2022, and for the first half of 2023, revenue decreased 16% to $1.0 billion from $1.2 billion in the prior year[96]. - Revenue from the Americas segment decreased 14% to $107.6 million in Q2 2023, while the Mainland China segment reported a 2% increase to $88.4 million[101]. - The Southeast Asia/Pacific segment saw a significant decline of 32% in Q2 2023, with revenue of $63.8 million[101]. - The total revenue for the first half of 2023 was $981.7 million, down 16% from $1.165 billion in the same period last year[101]. - Revenue for the second quarter of 2023 decreased by 11% to $500.3 million, compared to $560.6 million in the prior-year period[122]. Customer Metrics - The number of Customers, Paid Affiliates, and Sales Leaders declined by 25%, 23%, and 9% year-over-year, respectively[96]. - Total customers decreased by 25% year-over-year to 1,041,118 as of June 30, 2023, down from 1,380,615 in the prior year[106]. - Paid affiliates decreased by 23% year-over-year to 187,652, down from 242,133[106]. Earnings and Profitability - Earnings per share for Q2 2023 decreased 19% to $0.54, and for the first half of 2023, it decreased 47% to $0.76, primarily due to revenue decline and $9.8 million in restructuring charges[98]. - In Q2 2023, net income was $26.9 million, down from $34.2 million in Q2 2022, and for the first six months of 2023, net income was $38.3 million compared to $73.0 million in the same period of 2022[130]. - Gross profit as a percentage of revenue was 72.9% for the second quarter of 2023, down from 73.6% in the prior-year period[123]. Expenses and Charges - General and administrative expenses decreased to $137.0 million in the second quarter of 2023, compared to $141.6 million in the prior-year period[126]. - Selling expenses as a percentage of revenue decreased to 37.0% for the second quarter of 2023, down from 39.1% in the prior-year period[124]. - The company incurred total restructuring charges of approximately $53.3 million in 2022, with cash charges of $40.8 million and non-cash charges of $12.5 million[127]. Cash Flow and Capital Expenditures - Cash from operations in the first six months of 2023 was $13.4 million, a significant decrease from $54.1 million in the prior-year period, primarily due to an $18.5 million increase in inventory[131]. - As of June 30, 2023, cash and cash equivalents were $252.3 million, down from $278.5 million as of December 31, 2022, driven by dividend payments and capital expenditures[131]. - Working capital decreased to $347.5 million as of June 30, 2023, from $400.6 million as of December 31, 2022, mainly due to acquisitions of BeautyBio and LifeDNA[132]. - Capital expenditures for the first half of 2023 were $26.2 million, with an estimated total of $55–75 million planned for the year, including a new manufacturing plant in Mainland China[133]. Foreign Currency and Market Risks - The company regularly monitors foreign currency risks and takes measures to reduce the impact of foreign exchange fluctuations on operating results[150]. - A significant portion of the company's revenue and expenses are recognized outside of the United States, impacting reported revenue and earnings based on U.S. dollar fluctuations[148]. - The company’s reported revenue and earnings will be positively impacted by a weakening of the U.S. dollar and negatively impacted by a strengthening of the U.S. dollar[148]. - The functional currency for the subsidiary in Argentina became the U.S. dollar due to highly inflationary accounting adopted as of July 1, 2018[149]. Strategic Initiatives - The launch of ageLOC TRMe generated approximately $12.7 million in revenue during Q2 2023[97]. - Anticipated sales from the upcoming ageLOC WellSpa iO are projected to be between $70 million and $90 million for the second half of 2023[97]. - The company acquired 60% of LifeDNA for $4.0 million and 100% of Beauty Biosciences for $75.0 million in cash during Q2 2023[121]. Shareholder Returns - The company has $175.4 million available for stock repurchases under its existing plan, with no shares repurchased in the first half of 2023[135]. - The company anticipates continuing quarterly cash dividends, having declared $0.39 per share in February and May 2023, totaling approximately $39 million[136].

NU Skin Enterprises, Inc. (NYSE:NUS) Q1 2023 Earnings Conference Call May 3, 2023 5:00 PM ET Company Participants Scott Pond - VP, IR Ryan Napierski - President, CEO & Director Connie Tang - EVP & Chief Global Growth & Customer Experience Officer James Thomas - Interim CFO Conference Call Participants Chasen Bender - Citi Operator Good day and thank you for standing by. Welcome to the Quarter One Nu Skin Enterprises Earnings Conference Call. At this time, all participants are in a listen mode only. After th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, $.001 par value NUS New York Stock Exchange FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO ________ ...

NU Skin Enterprises, Inc. (NYSE:NUS) Q4 2022 Earnings Conference Call February 15, 2023 5:00 PM ET Company Participants Scott Pond - VP, IR Ryan Napierski - President, CEO & Director Connie Tang - EVP & Chief Global Growth & Customer Experience Officer Mark Lawrence - EVP & CFO Conference Call Participants Mark Astrachan - Stifel, Nicolaus & Company Chasen Bender - Citigroup Operator Good day and thank you for standing by. Welcome to the Fourth Quarter 2022 Nu Skin Enterprises Earnings Conference Call. [Ope ...

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, 2022 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 2022 Earnings Conference Call November 2, 2022 5:30 PM ET Company Participants Scott Pond - Vice President of Investor Relations Ryan Napierski - President & CEO Mark Lawrence - CFO Connie Tang - Chief Global Growth Officer Conference Call Participants Operator Good day, and thank you for standing by. Welcome to the Nu Skin Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be ...

Nu Skin Enterprises, Inc. (NYSE:NUS) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Scott Pond - Vice President of Investor Relations Ryan Napierski - President & Chief Executive Officer Mark Lawrence - Chief Financial Officer Conference Call Participants Stephanie Wissink - Jefferies Operator Good day and thank you for standing by. Welcome to the Nu Skin Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will b ...