Nu Skin(US:NUS)2024-08-08 20:15Financial 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].