Nu Skin(NUS) - 2025 Q1 - Quarterly Results

Financial Performance - Q1 2025 revenue was $364.5 million, a decrease of 12.7% year-over-year, with a foreign exchange impact of$ (12.3) million or (3.0)%[3] - Total revenue for Q1 2025 was $364.49 million, a decrease of 12.6% compared to$ 417.31 million in Q1 2024[20] - For Q2 2025, revenue is projected to be between $355 million and$ 390 million, reflecting a decline of 19% to 11% year-over-year[6] - Full-year 2025 revenue guidance is set at $1.48 to$ 1.62 billion, representing a decrease of 15% to 6% compared to 2024[6] - The overall Revenue Growth Rate for 2024 is expected to decline between (19)% and (11)%[36] - Adjusted 2024 Revenue is projected at $427,074,000, reflecting a revenue growth rate of (17)% to (9)% excluding Mavely[36] - Forecasted 2025 Revenue ranges from$ 1,480,000,000 to $1,620,000,000, indicating a potential recovery in growth rates[36] - The company anticipates a significant improvement in revenue performance in 2025 compared to 2024[36] Customer Metrics - Total customers decreased by 11% to 776,712, while paid affiliates and sales leaders decreased by 15% and 20%, respectively[3] - Total customers decreased by 11% year-over-year to 776,712, with significant declines in Southeast Asia/Pacific (20%) and Mainland China (25%)[18] - Total paid affiliates decreased by 15% to 131,518, with the largest drop in Southeast Asia/Pacific (25%) and Mainland China (19%)[18] - Total sales leaders decreased by 20% to 31,036, with the most significant decline in Mainland China (35%) and South Korea (31%)[18] Earnings and Profitability - Earnings per share (EPS) for Q1 2025 was$ 2.14, or $0.23 excluding the gain from the Mavely sale and other charges, compared to$ (0.01) or $0.09 in the prior year[4] - Net income for Q1 2025 was$ 107.52 million, compared to a net loss of $0.53 million in Q1 2024[20] - Operating loss for Q1 2025 was$ 9.90 million, while adjusted operating income was $23.18 million, reflecting a margin of 6.4% excluding certain charges[27] - The diluted earnings per share for Q1 2025 was$ 2.14, compared to a loss of $0.01 per share in Q1 2024[20] Expenses and Debt Management - Gross margin for Q1 2025 was 67.8%, down from 70.5% in the prior year, with selling expenses reduced to 32.5% from 36.8%[4] - General and administrative expenses were$ 113.20 million, representing 31.1% of revenue, an increase from 29.9% in Q1 2024[25] - The company reduced outstanding debt by $155 million, achieving its lowest debt level in over 10 years[7] Strategic Initiatives - The company plans to launch the Prysm iO intelligent wellness device in the second half of 2025, aimed at enhancing customer satisfaction and loyalty[3] - The company is preparing for market expansion into India, with a pre-opening planned for Q4 2025 and a formal launch in mid-2026[3] - Dividend payments totaled$ 3.0 million, with an additional $5.0 million allocated for stock repurchases, leaving$ 157.4 million remaining in authorization[5] Market Outlook and Strategy - The financial outlook suggests a strategic focus on enhancing revenue streams while managing the impact of Mavely[36] - The company is actively monitoring market conditions to adjust forecasts and strategies accordingly[36] - Future growth strategies may include new product developments and market expansions to drive revenue recovery[36]