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Nu Skin(NUS) - 2024 Q1 - Quarterly Results
NUSNu Skin(NUS)2024-05-08 20:20

Financial Performance - Q1 2024 revenue was 417.3million,adecreaseof13.3417.3 million, a decrease of 13.3% year-over-year, with a foreign exchange impact of (18.2) million[2] - Earnings per share (EPS) for Q1 2024 was (0.01),comparedto(0.01), compared to 0.23 in the prior year, or 0.09excludingrestructuringcharges[2]−TotalrevenueforQ12024was0.09 excluding restructuring charges[2] - Total revenue for Q1 2024 was 417.3 million, a decrease of 13.3% from 481.5millioninQ12023[24]−GrossprofitforQ12024was481.5 million in Q1 2023[24] - Gross profit for Q1 2024 was 294.1 million, down 15.5% from 347.9millioninQ12023[24]−Operatingincomedecreasedto347.9 million in Q1 2023[24] - Operating income decreased to 8.8 million in Q1 2024, compared to 16.1millioninQ12023,reflectingadeclineof45.116.1 million in Q1 2023, reflecting a decline of 45.1%[24] - Net loss for Q1 2024 was (533,000), a significant drop from net income of 11.4millioninQ12023[24]−TheeffectivetaxrateforQ12024was148.411.4 million in Q1 2023[24] - The effective tax rate for Q1 2024 was 148.4%, compared to 22.0% in Q1 2023, indicating a substantial increase[30] Customer Metrics - The total number of customers decreased by 19% year-over-year to 875,261[2] - Paid affiliates decreased by 30% to 154,171, or 14% excluding an adjustment to eligibility requirements[2] - The company plans to implement changes in eligibility requirements for receiving certain rewards, which is expected to reduce customer numbers by approximately 14,000 in Japan and 5,000 in Europe & Africa[21] Revenue Guidance - Q2 2024 revenue guidance is projected between 420 million and 455million,reflectingadecreaseof16455 million, reflecting a decrease of 16% to 9% year-over-year[5] - Full-year 2024 revenue guidance is set between 1.73 billion and 1.87billion,adecreaseof121.87 billion, a decrease of 12% to 5% year-over-year[6] Profitability Metrics - The gross margin for Q1 2024 was 70.5%, down from 72.3% in the prior year[7] - Adjusted operating income, excluding restructuring impacts, was 15.96 million for Q1 2024, compared to 25.85millioninQ12023[28]−DilutedearningspershareforQ12024was25.85 million in Q1 2023[28] - Diluted earnings per share for Q1 2024 was (0.01), down from 0.23inQ12023[31]−AdjustedEPSforQ22024isprojectedtobebetween0.23 in Q1 2023[31] - Adjusted EPS for Q2 2024 is projected to be between 0.01 and 0.10,whileforthefullyear2024,itisexpectedtorangefrom0.10, while for the full year 2024, it is expected to range from 0.77 to 1.16[34]−RestructuringexpensesimpactedEPSby1.16[34] - Restructuring expenses impacted EPS by 0.15 in Q2 2024 and 0.29forthefullyear2024[34]−ThetaximpactonEPSwas0.29 for the full year 2024[34] - The tax impact on EPS was (0.06) for Q2 2024 and (0.11)forthefullyear2024[34]StrategicInitiatives−ThecompanyplanstolaunchthenewMYND360cognitivehealthlineandexpandintoIndianextyear[3]ShareholderReturns−Dividendpaymentsforthequarterwere(0.11) for the full year 2024[34] Strategic Initiatives - The company plans to launch the new MYND360 cognitive health line and expand into India next year[3] Shareholder Returns - Dividend payments for the quarter were 3.0 million, with 162.4millionremaininginstockrepurchaseauthorization[4]AssetandLiabilityOverview−Totalcurrentassetsdecreasedto162.4 million remaining in stock repurchase authorization[4] Asset and Liability Overview - Total current assets decreased to 647.3 million as of March 31, 2024, down from 701.9millionattheendof2023[26]−Totalliabilitiesdecreasedto701.9 million at the end of 2023[26] - Total liabilities decreased to 931.7 million as of March 31, 2024, compared to 984.5millionattheendof2023[26]RevenueGrowth−Rhyzrevenuegrewby57.5984.5 million at the end of 2023[26] Revenue Growth - Rhyz revenue grew by 57.5% year-over-year to 62.5 million[2]