What Does Nu Skin's Mavely Sale Mean for Its Long-Term Strategy?

Strategic Sale of Mavely - Nu Skin Enterprises Inc (NUS) subsidiary Rhyz Inc sold its Mavely affiliate marketing technology platform to Later for nearly $250 million, including cash and a minority equity stake in the merged Later/Mavely business [1] - The sale generated a five-times return on Nu Skin's investment in Mavely, which was acquired in 2021 [3] - Mavely will continue to provide technology and social commerce solutions to enhance Nu Skin's affiliate marketing operations [1] Impact on Nu Skin's Business - The integration of Later and Mavely will enhance Nu Skin's capabilities in expanding its beauty, wellness, and lifestyle ecosystem [2] - The transaction provides additional capital and resources for innovation in Nu Skin's core business and further investment in Rhyz companies [2] - Proceeds from the sale will reduce company debt, fund core business innovations, and enhance shareholder value through stock repurchase programs [3] Market Performance and Challenges - Nu Skin shares gained 17.6% in the past three months, outperforming the industry's decline of 17.5% [6] - The company faces challenges in its core direct-selling business due to macroeconomic factors, inflationary pressures, political uncertainty, and weak consumer sentiment in key markets [5] - Nu Skin lacks clear visibility into when its core direct-selling business might return to growth [5] Industry Comparison - Abercrombie & Fitch Co (ANF) has a Zacks Rank 1 (Strong Buy) with expected fiscal-year sales and earnings growth of 15% and 69.3%, respectively [8] - The Gap Inc (GAP) holds a Zacks Rank 1 with projected fiscal-year earnings and sales growth of 0.8% and 41.3%, respectively [9] - Helen of Troy (HELE) carries a Zacks Rank 2 (Buy) but faces expected declines of 5.3% in sales and 19.2% in earnings for the current fiscal year [10]