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NUS Q4 Preliminary Revenues Reach Top End of Outlook, Stock Gains 9.8%
NUSNu Skin(NUS) ZACKS·2025-01-14 19:56

Group 1: Company Performance - Nu Skin Enterprises Inc. (NUS) shares increased by 9.8% following the announcement of preliminary revenues for Q4 2024, which were at the upper end of the projected range of 410410-445 million, indicating a 9-16% decline from the previous year's figures [1] - The company’s subsidiary, Rhyz Inc., sold its Mavely affiliate marketing technology platform to Later for nearly $250 million, which will enhance Nu Skin's capabilities in the beauty, wellness, and lifestyle sectors [3] - The sale of Mavely resulted in a five-times return on investment for Nu Skin, which will help reduce debt and support growth in its core business, as well as enhance shareholder value through stock repurchase programs [4] Group 2: Market Challenges - The operating environment for Nu Skin's core business remains challenging due to macroeconomic factors, including inflation, political uncertainty, and weak consumer sentiment, which are expected to persist into 2025 [5] - Nu Skin's strong international presence exposes it to risks from volatile currency movements, and there is a lack of clear visibility regarding the return to growth for its direct-selling business [5] - Over the past three months, Nu Skin's shares have declined by 33.4%, compared to a 29.4% decline in the industry [6]