Nu Skin(NUS) Zacks Investment Research·2024-05-09 15:26Core Viewpoint - Nu Skin Enterprises, Inc. reported a decline in both revenue and earnings for the first quarter of 2024, with revenues missing the Zacks Consensus Estimate due to significant foreign currency headwinds, although cost management efforts positively impacted the bottom line [1][2]. Financial Performance - Adjusted earnings were 9 cents per share, down from 37 cents in the prior year, but exceeded the Zacks Consensus Estimate of 5 cents [2]. - Revenues totaled 431 million [2]. - Sales leaders decreased by 12% to 38,609, customer base dropped 19% to 875,261, and paid affiliates fell 30% to 154,171 [2]. Profitability Metrics - Gross profit was 347.9 million year-over-year, with a gross margin of 70.5%, down from 72.3% [3]. - Selling expenses decreased to 188.1 million, representing 36.8% of revenues, down from 39.1% [3]. - General and administrative expenses were 133.9 million, accounting for 29.9% of revenues, up from 27.8% [3]. - Adjusted operating margin contracted by 160 basis points to 3.8% [4]. Regional Performance - Revenue declines by region (at constant currency) included 20.1% in the Americas, 6.1% in Mainland China, 8.1% in Southeast Asia/Pacific, 5.6% in Japan, 11.8% in Europe & Africa, 39.3% in South Korea, and 9.8% in Hong Kong/Taiwan; however, other revenues surged by 684.3% year-over-year [5]. Financial Position - At the end of the quarter, cash and cash equivalents were 453.2 million, and total stockholders' equity was 3 million in dividends and has 1.73 billion and 1.35, down from 1.16 per share compared to 17 cents in 2023 [7]. - For Q2 2024, revenue expectations are between 455 million, reflecting a decline of 16% to 9% year-over-year, with adjusted earnings projected at 10-20 cents per share [8].