Nu Skin Enterprises (NYSE:NUS) FY 2026 Conference January 12, 2026 01:30 PM ET Company ParticipantsRyan Napierski - CEORyan NapierskiSo, you know, we got in, as you said earlier, and I hope the slides work here. If not, maybe I can have you advance one. Are you guys seeing one that's, oh, maybe you guys are seeing. I'm trying to see which slide we're looking at here. You guys help me with the wellness industry slide, whoever's running point here. Yeah, there we go. As you mentioned earlier, we have Nu Skin. ...

Financial Data and Key Metrics Changes - The company achieved over 7% revenue growth in the last quarter, significantly outperforming the apparel, accessories, and footwear market, which only grew 1% during the same period [7] - Fixed costs were reduced by 24%, gross margins improved by 200 basis points, and contribution margins increased by over 500 basis points as a result of operational efficiencies [5] - Average order value grew nearly 10% in the last quarter, marking nine consecutive quarters of growth [7][14] - Active client count trends improved for six consecutive quarters, with new clients up 4%, re-engaged clients up 8%, and the number of clients leaving the service down 17% year-over-year, the lowest in over five years [7] Business Line Data and Key Metrics Changes - The women's accessories business grew over 40%, women's sneakers business increased over 60%, and jewelry business rose over 25% in the last quarter, indicating strong performance across new categories [26] - The company has expanded its offerings beyond tops and bottoms, moving into activewear, accessories, and footwear, with a $1 billion fair share opportunity identified in these categories [25] Market Data and Key Metrics Changes - Only 10% of U.S. consumers enjoy shopping for apparel and accessories in person, and only 15% prefer online shopping, indicating a significant market opportunity for the company to capture [10] - The company is targeting specific client segments, such as those on GLP-1 medications, to tailor its marketing and service offerings [12] Company Strategy and Development Direction - The company is focused on a three-stage transformation strategy: rationalization, rebuilding, and growth, aiming to create a sustainable and profitable business model [5] - A new brand platform called Retail Therapy was launched to differentiate the company's service from competitors and target specific client segments [11] - The company is leveraging generative AI innovations to enhance client experiences and operational efficiencies [8] Management's Comments on Operating Environment and Future Outlook - The CEO expressed confidence in the company's ability to continue capturing market share and driving revenue growth, with guidance for another consecutive quarter of accelerated revenue growth [46] - The company plans to return to active client growth in the third quarter and aims to leverage its business model to improve EBITDA and net income over time [46] Other Important Information - The company has made significant investments in CRM and martech capabilities to better understand and engage clients [23] - The role of human stylists remains critical, as they build deep relationships with clients, enhancing loyalty and personalizing the shopping experience [40] Q&A Session Summary Question: How does the company manage customer acquisition spend? - The CEO emphasized a methodical approach to ensure new client cohorts continue to spend at or above prior levels, avoiding unsustainable growth metrics [19] Question: What is the strategy regarding private label products? - The company has refined its private label offerings, removing underperforming items and focusing on quality, which has resulted in higher margins [35] Question: How does the company view the role of AI in relation to human stylists? - The CEO stated that while AI enhances the service, the human stylist's role is essential for building relationships and providing personalized experiences [40]

Financial Data and Key Metrics Changes - The company has achieved three consecutive quarters of revenue growth, with a 7% increase in the last quarter, outperforming the apparel, accessories, and footwear market, which only grew by 1% during the same period [7] - Average order value has increased for nine consecutive quarters, with a nearly 10% rise in the last quarter [7] - Active client count has shown improving trends for six consecutive quarters, with new clients up 4%, re-engaged clients up 8%, and a 17% decrease in clients leaving the service year over year, marking the lowest churn rate in over five years [7] Business Line Data and Key Metrics Changes - The company has successfully diversified its product offerings beyond tops and bottoms, with significant growth in women's accessories (up over 40%), women's sneakers (up over 60%), and jewelry (up over 25%) in the last quarter [26] - The transformation strategy included rationalizing the business, which led to a 24% reduction in fixed costs, a 200 basis point improvement in gross margins, and over a 500 basis point improvement in contribution margins [5] Market Data and Key Metrics Changes - The total addressable market (TAM) is vast, with only 10% of U.S. consumers enjoying in-person shopping for apparel and accessories, and only 15% preferring online shopping, indicating a significant opportunity for the company to capture a larger market share [10] - The company has identified a $1 billion fair share opportunity in active wear, accessories, and footwear, with ongoing efforts to deepen penetration in these categories [25] Company Strategy and Development Direction - The company is focused on leveraging technology and innovation to enhance client experiences and has launched a new brand platform called Retail Therapy to differentiate its service from competitors [11] - The strategy includes a transformation in three phases: rationalization, rebuilding, and growth, with a strong emphasis on client-centricity and personalized shopping experiences [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue capturing market share and driving revenue growth, with guidance for another consecutive quarter of accelerated revenue growth [46] - The company is committed to being methodical in customer acquisition and ensuring that new client cohorts continue to spend at or above prior levels, which is crucial for sustainable growth [19] Other Important Information - The company has been actively integrating generative AI innovations to enhance client engagement and improve operational efficiencies [8] - The role of human stylists remains critical, as they build deep relationships with clients, adding value beyond AI capabilities [40] Q&A Session Summary Question: How does the company manage customer acquisition spending? - The company emphasizes a methodical approach to customer acquisition, ensuring that new client cohorts are sustainable and spend at or above previous levels, avoiding unsustainable growth metrics [19] Question: What is the strategy regarding private label products? - The company has re-evaluated its private label offerings, removing underperforming items and focusing on quality and value, with private label products now accounting for approximately 40-50% of revenue and units [33][34] Question: How does the company view the future of the stylist role in relation to AI? - The company believes that human stylists are essential for building client relationships and providing personalized experiences, which will complement AI innovations rather than be replaced by them [40]

Nu Skin Enterprises (NYSE:NUS) FY 2026 Conference January 12, 2026 01:30 PM ET Speaker0So, you know, we got in, as you said earlier, and I hope the slides work here. If not, maybe I can have you advance one. Are you guys seeing one that's, oh, maybe you guys are seeing. I'm trying to see which slide we're looking at here. You guys help me with the wellness industry slide, whoever's running point here. Yeah, there we go. As you mentioned earlier, we have Nu Skin. We realize that beauty devices, well, I'll ta ...

Financial Data and Key Metrics Changes - The company achieved over 7% revenue growth in the last quarter, significantly outperforming the apparel, accessories, and footwear market, which only grew 1% during the same period [6] - Gross margins improved by 200 basis points, and contribution margins increased by over 500 basis points as a result of operational efficiencies [4] - Average order value grew nearly 10% in the last quarter, marking nine consecutive quarters of growth [6][12] Business Line Data and Key Metrics Changes - The women's accessories business grew over 40%, women's sneakers business increased over 60%, and jewelry business rose over 25% in the last quarter, indicating strong performance across new categories [21] - The company has seen a significant reduction in client churn, with clients that left the service down 17% year over year, the lowest in over five years [6] Market Data and Key Metrics Changes - Only 10% of U.S. consumers enjoy shopping for apparel and accessories in person, and only 15% prefer online shopping, indicating a large untapped market for the company [8] - The company has identified a $1 billion fair share opportunity in active wear, accessories, and footwear, with ongoing success in these categories [20] Company Strategy and Development Direction - The company is focused on a three-phase transformation strategy: rationalization, rebuilding, and growth, aiming to create a sustainable and profitable business model [4] - A new brand platform called Retail Therapy was launched to differentiate the Stitch Fix service and target specific client segments effectively [9] - The company is leveraging generative AI innovations to enhance client experiences and operational efficiencies [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue capturing market share and achieving revenue growth, with guidance for another consecutive quarter of accelerated revenue growth [36][37] - The company is methodically approaching customer acquisition to ensure sustainable growth, focusing on high-quality client retention and engagement [15] Other Important Information - The company has made significant investments in CRM and MarTech capabilities to better understand and engage clients, enhancing the overall customer experience [19] - The role of human stylists remains critical, as they build deep relationships with clients, adding value beyond AI capabilities [31] Q&A Session Summary Question: What is the company's strategy for customer acquisition? - The company emphasizes a methodical approach to customer acquisition, ensuring that new client cohorts continue to spend at or above prior levels before increasing marketing investments [15] Question: How does the company view its growth potential in new categories? - The company is actively adding new categories and deepening penetration in existing ones, with a significant revenue opportunity identified in active wear and accessories [26] Question: What is the importance of the stylist role in the business model? - Stylists play a crucial role in building client relationships and enhancing loyalty, complementing the company's AI capabilities [31]

Financial Data and Key Metrics Changes - LifeVantage has a market cap of approximately $80 million and has been publicly traded for over 15 years on Nasdaq [2][39] - The company has maintained a profitable model generating significant free cash flow, focusing on internal reinvestment and share repurchase programs [62] Business Line Data and Key Metrics Changes - The flagship product, Protandim Nrf2, remains a significant revenue driver, representing over 50% of total revenue [15][52] - The company has launched new products, including a collagen product and a GLP-1 product, which have opened new market opportunities [5][16] Market Data and Key Metrics Changes - The gut health market is projected to grow from $8 billion to $32 billion over the next eight years, indicating a compound annual growth rate (CAGR) of nearly 10% [15][52] - LifeVantage has expanded into new markets, including Iceland and the Canary Islands, leveraging existing consultant networks [67] Company Strategy and Development Direction - The company emphasizes an "activation" philosophy, differentiating its products from traditional supplementation by focusing on enhancing the body's natural production capabilities [4][44] - LifeVantage's strategy includes exploring acquisitions, as evidenced by the recent acquisition of LoveBiome, which aligns with the company's focus on gut health [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of LoveBiome and noted a high retention rate of consultants post-acquisition, indicating successful integration [51] - The company aims to expand its customer base beyond the traditional anti-aging demographic by launching products that appeal to younger consumers [53] Other Important Information - LifeVantage operates in about 20 countries, with North America accounting for 78% of its revenue [21][58] - The company has optimized its compensation plan to attract micro-influencers and adapt to changes in consumer buying behavior accelerated by COVID-19 [22][59] Q&A Session Summary Question: What is the company's view on the gut health market opportunity? - The gut health market is expected to grow significantly, and the company sees it as a new area of opportunity that complements its existing product lines [15][52] Question: How has the acquisition of LoveBiome been integrated into the company? - The acquisition was completed quickly, and the integration has been successful, with high retention rates of consultants and positive cross-selling opportunities [51] Question: What are the company's future investment priorities? - Future investments will focus on technology, particularly in enhancing e-commerce capabilities through a partnership with Shopify [64]

Financial Data and Key Metrics Changes - LifeVantage has a market cap of approximately $80 million and has been publicly traded for over 15 years on Nasdaq [2][40] - The company has maintained a profitable model that generates significant free cash flow, allowing for reinvestment into the business and share repurchase programs [65] Business Line Data and Key Metrics Changes - The flagship product, Protandim NRF2, continues to represent over 50% of the company's revenue and is classified as an anti-aging product [15][55] - The company has launched new products, including a collagen product that enhances the body's ability to produce collagen by 100% and a GLP-1 product that increases GLP-1 production by over 200% [5][44] Market Data and Key Metrics Changes - The gut health market is projected to grow from $8 billion to approximately $32 billion over the next eight years, indicating a compound annual growth rate (CAGR) of just under 10% [15][54] - LifeVantage's core demographic primarily consists of individuals aged 45 and above, but the company aims to expand its customer base with new product launches [55] Company Strategy and Development Direction - The company is focusing on "activation" as a core theme, distinguishing its products from traditional supplementation by enhancing the body's natural production capabilities [3][7] - LifeVantage has made its first acquisition of LoveBiome, which focuses on gut microbiome products, to diversify its offerings and tap into new markets [10][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of LoveBiome and noted a high retention rate of consultants from the acquisition, indicating successful cross-selling opportunities [52][53] - The company is optimistic about expanding into new markets with low entry costs, such as Iceland and the Canary Islands, leveraging existing consultant networks [69] Other Important Information - LifeVantage has optimized its compensation plan to attract micro-influencers and social sellers, enhancing its direct selling model [22][61] - The company is investing in technology, particularly through a partnership with Shopify to improve its e-commerce platform [66] Q&A Session Summary Question: What is the company's view on the gut health market? - The gut health market is expected to grow significantly, and the company sees it as a new area of opportunity, aligning with its strategy to expand beyond anti-aging products [54] Question: How has the acquisition of LoveBiome been integrated? - The acquisition was completed quickly, and the integration has been successful, with a high retention rate of consultants and positive cross-selling results [51][52] Question: What are the future investment priorities for the company? - Future investments will focus on technology and international expansion, with an emphasis on enhancing the e-commerce experience [66][68]

Financial Data and Key Metrics Changes - LifeVantage has a market cap of approximately $80 million and has been publicly traded for over 15 years [3][42] - The company has maintained a profitable model that generates significant free cash flow, allowing for reinvestment into the business and share repurchase programs [65][66] Business Line Data and Key Metrics Changes - The Protandim NRF2 product remains a cornerstone of the company, representing over 50% of total revenue and classified as an anti-aging product [17][55] - The company has launched new products, including a collagen product and a GLP-1 product, which have opened new market segments and increased the body’s ability to produce essential substances [6][45][56] Market Data and Key Metrics Changes - The gut health market is projected to grow from $8 billion to $32 billion over the next eight years, indicating a compound annual growth rate (CAGR) of just under 10% [17][55] - LifeVantage has expanded into new markets, including Iceland and the Canary Islands, leveraging existing consultant networks to minimize entry costs [70] Company Strategy and Development Direction - The company is focusing on a product strategy centered around "activation," which distinguishes its offerings from traditional supplementation [4][46] - LifeVantage aims to diversify its customer base by launching products that appeal to younger demographics and different health concerns beyond anti-aging [56][57] - The recent acquisition of LoveBiome is seen as a strategic move to enhance product offerings in the gut microbiome space and integrate new consultants and customers [9][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integration of LoveBiome and noted a high retention rate of consultants post-acquisition, indicating successful cross-selling opportunities [54] - The company is optimistic about the future growth potential in the gut health market and the overall strategy to connect various product lines through the activation philosophy [19][55] Other Important Information - LifeVantage has optimized its compensation plan to attract a broader range of independent consultants, including micro-influencers, to enhance sales and marketing efforts [62][63] - The company is committed to investing in technology, particularly through a partnership with Shopify to improve e-commerce capabilities [29][67] Q&A Session Summary Question: What is the company's view on the gut health market opportunity? - The gut health market is projected to grow significantly, and the company sees this as a new area of opportunity to expand its customer base beyond traditional anti-aging products [17][55] Question: How has the acquisition of LoveBiome been integrated into the company? - The acquisition was completed quickly, and the integration has been successful, with a high retention rate of consultants and positive cross-selling results [54][53] Question: What are the company's future investment priorities? - Future investments will focus on technology enhancements and international expansion, leveraging low-cost entry strategies in new markets [66][70]

Financial Data and Key Metrics Changes - The company has achieved notable margin improvement, reaching approximately 17% restaurant-level margins and aiming for 18% [4] - The company plans to finish 2025 with margins in the high 17% range, with long-term targets of 18%-20% [24][32] Business Line Data and Key Metrics Changes - The company has refreshed its menu with new items such as burritos, burrito bowls, and salads, while also focusing on chicken on the bone [4] - New unit growth has been initiated, with 10 new units opened in 2025 and plans to double that in 2026 [35] Market Data and Key Metrics Changes - The company operates predominantly on the West Coast, facing unique market pressures but believes it is well-positioned due to its affordability and value proposition [6][7] - The loyalty program has seen growth, with users visiting approximately 6% more frequently due to targeted discounts [9] Company Strategy and Development Direction - The company is focused on a brand turnaround through marketing campaigns like "Let's Get Loco" and menu innovation [3] - Plans for 2026 include launching new products such as chicken tenders and expanding into new markets outside California [11][35] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, with consumers under pressure, but the company feels well-positioned to navigate these challenges [6][7] - Management is optimistic about future growth, citing improved unit economics and a strong pipeline for new restaurant openings [27][32] Other Important Information - The company has implemented various operational efficiencies, including a new labor scheduling system and in-store ordering kiosks, to improve productivity [20][21] - The company is also focusing on remodeling existing restaurants to drive sales uplift [38] Q&A Session Questions and Answers Question: What has been accomplished in the brand turnaround? - The company has launched the "Let's Get Loco" campaign, refreshed its menu, and improved its business model and margins [3][4] Question: How is the company positioned in the current macro environment? - The company acknowledges the challenging environment but believes it offers affordable options that provide good value compared to competitors [6][7] Question: What are the long-term targets for margins? - The company aims for 18%-20% store-level margins, with current margins in the high 17% range [24][32] Question: What is the approach to new unit growth? - The company plans to double new unit openings in 2026, focusing on both existing and new franchise partners [35] Question: How will cash flow be utilized? - The company intends to use cash for new store development, remodel programs, and operational efficiencies [38][39]

Financial Data and Key Metrics Changes - The company has experienced three consecutive quarters of comparable store growth, maintaining higher average unit retail prices (AUR) without the typical unit degradation associated with price increases [11][12] - The wholesale business in the U.S. represents approximately $1 billion of the company's $3 billion in revenue, with a significant portion attributed to exclusive brands [35] Business Line Data and Key Metrics Changes - The direct-to-consumer (DTC) business showed strong performance, with the wholesale business exceeding expectations during the holiday period [11] - The company has identified around 150 stores for closure, primarily those that are lower margin, which collectively represent about $110 million in revenue [22][26] Market Data and Key Metrics Changes - The company has diversified its market approach, performing well across wholesale, international, and retail channels, with all age categories exceeding expectations [11] - The shift in consumer behavior towards online shopping has been significant, with e-commerce now accounting for about one-third of U.S. retail revenue [29] Company Strategy and Development Direction - The company aims to invest in product design and demand creation to resonate with today's young consumers, particularly Gen Z parents [6][8] - There is a focus on enhancing brand identity for each product line, allowing brands like Oshkosh and Carter's to develop their unique identities [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for reinvestment in marketing and product quality to attract new consumers and regain the trust of lapsed customers [6][16] - The expectation for growth in sales and earnings remains for 2026, with a focus on sustainable and profitable growth rather than growth driven by discounts [39][40] Other Important Information - The company is transitioning its Amazon business from a private label to core flagship brands, which is expected to drive future growth [36] - The supply chain team has successfully diversified sourcing to mitigate tariff impacts, resulting in meaningful cost savings [20] Q&A Session Summary Question: What are the biggest challenges faced since the new CEO took over? - The CEO highlighted the need for investment in product design and demand creation to align with consumer expectations [6] Question: Can you elaborate on the holiday performance? - The CEO noted strong performance across all channels, with the ability to maintain higher prices without losing unit sales [11] Question: What is the strategy for store closures? - The company plans to close 150 stores identified as lower margin, with expectations that some revenue will transfer to nearby locations [22][26] Question: How does e-commerce fit into the overall strategy? - E-commerce is a significant part of the business, expected to grow as physical store closures occur, with a focus on omnichannel capabilities [29] Question: What is the outlook for the wholesale business? - The wholesale business is expected to evolve, focusing on exclusive brands and adapting to changes in retail environments [36][37]