PROVO, Utah--(BUSINESS WIRE)--Nu Skin Enterprises Inc. (NYSE: NUS) today announced fourth quarter and full-year 2024 results above its latest revenue guidance.
Executive Summary
Q4 2024 vs. Prior-year Quarter
| Revenue |
$445.6 million; (8.8)%
|
| Earnings Per Share (EPS) | $(0.73) or $0.38 excluding restructuring and other charges, compared to $0.15 or $0.37 excluding restructuring and other charges |
| Customers | 831,972; (15)% |
| Paid Affiliates | 144,874; (13)% or (12)% excluding an adjustment to eligibility requirements |
| Sales Leaders | 36,912; (16)% |
Executive Summary
2024 vs. 2023
| Revenue: |
$1.73 billion; (12.0)%
|
| Earnings Per Share (EPS): | $(2.95) or $0.84 excluding restructuring and other charges, compared to $0.17 or $1.85 excluding inventory write-off and other charges |
“We were pleased to beat our fourth quarter revenue guidance, generate sequential revenue growth and exceed our adjusted earnings as we materially completed our restructuring plan," said Ryan Napierski, Nu Skin president and CEO. “As we look ahead to 2025, we anticipate improving business trends and a return to year-over-year growth in several of our markets but also anticipate continued economic challenges and poor consumer sentiment, particularly in Greater China and South Korea.
“This year we will focus on strengthening our core Nu Skin business with the continued rollout of our enhanced sales performance compensation plan in several markets as well as accelerating growth in developing markets including Latin America,” continued Napierski. “We are also excited for Prysm iO™, an exclusive intelligent wellness device that will provide consumers with the nutritional insights needed to look, live and feel better. We anticipate the introduction later this year of this breakthrough technology will infuse energy and future growth for the nutrition side of the business. Also, we were pleased with the strategic transaction of Mavely for $250 million, which strengthened our balance sheet and underscored the value of Rhyz to incubate and scale meaningful business, as we continue to invest in and advance our Rhyz segments.”
Q4 2024 Year-over-year Operating Results
| Revenue |
$445.6 million compared to $488.6 million
|
| Gross Margin |
62.7% or 71.4% excluding inventory write-off compared to 72.1%
|
| Selling Expenses |
37.1% compared to 37.1%
|
| G&A Expenses | 27.1% compared to 29.7% |
| Operating Margin | (11.9)% or 7.7% excluding restructuring and other charges compared to 3.3% or 6.4% excluding restructuring and other charges |
| Interest Expense | $5.9 million compared to $7.4 million |
| Other Income | $1.1 million compared to $0.6 million |
| Income Tax Rate | 37.5% or 36.6% excluding restructuring and other charges compared to 21.9% or 24.9% excluding restructuring and other charges |
| EPS | $(0.73) or $0.38 excluding restructuring and other charges compared to $0.15 or $0.37 excluding restructuring and other charges |
The following table sets forth revenue for the three-month periods ended December 31, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):
| Market | Revenue 2024 |
| Americas | $85,356 |
| Southeast Asia/Pacific | $64,925 |
| Mainland China | $56,438 |
| Japan | $47,512 |
| Europe & Africa | $42,600 |
| South Korea | $33,423 |
| Hong Kong/ Taiwan | $32,549 |
Conference Call
The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at ir.nuskin.com. A replay of the webcast will be available on the same page through Feb. 27, 2025.
About Nu Skin Enterprises Inc.
The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by 40 years of scientific research, the company’s products help people look, feel and live their best with brands including Nu Skin® personal care, Pharmanex® nutrition and ageLOC® anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories.
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the macro environment, business trends, the company’s performance, growth and growth opportunities, investments, initiatives, rollout of the enhanced sales performance compensation plan, new product introductions, and performance of our Rhyz segments; projections regarding revenue, expenses, tax rates, earnings per share, foreign currency fluctuations, uses of cash and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “anticipate,” “accelerate,” “vision,” “continue,” “outlook,” “guidance,” “improve,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words.
The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:
- any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis;
- risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events;
- economic conditions and events globally;
- competitive pressures in the company’s markets;
- risk that epidemics and related disruptions, or other crises could negatively impact our business;
- adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;
- political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets;
- uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
- risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;
- uncertainties regarding the future financial performance of the businesses the company has acquired;
- risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
- regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements; and
- the company’s future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company’s products imported into the company’s markets outside of the United States, and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various markets.
The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.
Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.
Earnings per share, gross margin, operating margin and income tax rate, each excluding inventory write-off charges, restructuring charges, the gain from the Mavely sale, and/or other charges, as well as revenue growth rate excluding Mavely 2024 revenue, also are non-GAAP financial measures.
- Inventory write-off charges and restructuring charges are not part of the ongoing operations of our underlying business;
- Mavely revenue is no longer included in our operations following our sale of this business on January 2, 2025; and
- the gain from the Mavely sale, legal accrual, and non-recurring foreign tax charge that have been excluded in the non-GAAP financial measures are not typical for our ongoing operations.
The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of these items facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, gross margin, operating margin, income tax rate and revenue growth rate calculated under GAAP, below.
The following table sets forth revenue for the three-month periods ended December 31, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):
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Three Months Ended |
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Americas |
335,912 |
Contacts
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577