Nu Skin Enterprises Reports Fourth Quarter and Full-year 2024 Results Above Company Revenue Guidance

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)% (4.1)% FX impact or $(20.1) million Rhyz revenue $83.1 million; 27.7% 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)% (3.8)% FX impact or $(76.1) million Rhyz revenue $286.6 million; 32.3% 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 (4.1)% FX impact or $(20.1) million Rhyz revenue $83.1 million; 27.7% Gross Margin 62.7% or 71.4% excluding inventory write-off compared to 72.1% Nu Skin business was 67.5% or 76.6% excluding inventory write-off compared to 77.4% Selling Expenses 37.1% compared to 37.1% Nu Skin business was 40.3% compared to 40.8% 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 Stockholder Value Dividend Payments $3.0 million Stock Repurchases $0.0 million $162.4 million remaining in authorization Q1 and Full-year 2025 Outlook Q1 2025 Revenue $345 to $365 million; (17)% to (13)% Approximately (3)% FX impact Q1 2025 EPS $2.65 to $2.75 or $0.10 to $0.20 excluding the gain from the Mavely transaction 2025 Revenue $1.48 to $1.62 billion; (15)% to (6)% or (11)% to (3)% excluding Mavely revenue in 2024 Approximately (3)% FX impact 2025 EPS $3.45 to $3.85 or $0.90 to $1.30 excluding the gain from the Mavely transaction “We are encouraged by our recent progress in strengthening our business by driving sequential growth in our core Nu Skin business, improving operational efficiencies and delivering strong cash flow,” said James D. Thomas, chief financial officer. “As we look ahead to 2025, our annual revenue guidance is $1.48 to $1.62 billion, with an approximate 3% foreign currency headwind. We anticipate reported EPS of $3.45 to $3.85 and growth in our adjusted EPS, which we estimate to be $0.90 to $1.30, excluding the gain from the sale of Mavely. For the first quarter, which is typically our lowest quarter due to seasonality of our business, we project revenue of $345 to $365 million. This assumes a negative foreign currency impact of approximately 3%, with reported earnings per share of $2.65 to $2.75 or $0.10 to $0.20, excluding the gain from the sale of Mavely. As we’ve executed on our restructuring plan and improved our cost structure, we are better positioned to execute our strategy and drive earnings growth in 2025.” 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): Three Months Ended December 31, Constant-Currency 2024 2023 Change Change Nu Skin Americas $ 85,356 $ 97,753 (12.7)% 3.8% Southeast Asia/Pacific 64,925 66,889 (2.9)% (3.4)% Mainland China 56,438 71,516 (21.1)% (21.2)% Japan 47,512 50,966 (6.8)% (3.8)% Europe & Africa 42,600 47,892 (11.0)% (10.1)% South Korea 33,423 48,380 (30.9)% (26.7)% Hong Kong/ Taiwan 32,549 41,209 (21.0)% (20.0)% Other (354) (1,066) 66.8% 67.0% Total Nu Skin 362,449 423,539 (14.4)% (9.7)% Rhyz Manufacturing 47,882 50,363 (4.9)% (4.9)% Rhyz Other 35,221 14,738 139.0% 139.0% Total Rhyz 83,103 65,101 27.7% 27.7% Total $ 445,552 $ 488,640 (8.8)% (4.7)% The following table sets forth revenue for the years ended December 31, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands): Year Ended December 31, Constant-Currency 2024 2023 Change Change Nu Skin Americas $ 322,516 $ 398,222 (19.0)% (8.2)% Southeast Asia/Pacific 244,846 267,206 (8.4)% (6.4)% Mainland China 235,235 298,079 (21.1)% (19.7)% Japan 181,557 207,833 (12.6)% (5.9)% Europe & Africa 164,164 192,352 (14.7)% (14.6)% South Korea 163,706 236,099 (30.7)% (27.7)% Hong Kong/ Taiwan 130,610 153,589 (15.0)% (13.3)% Other 2,832 (858) 430.1% 430.3% Total Nu Skin 1,445,466 1,752,522 (17.5)% (13.2)% Rhyz Manufacturing 201,430 181,395 11.0% 11.0% Rhyz Other 85,188 35,214 141.9% 141.9% Total Rhyz 286,618 216,609 32.3% 32.3% Total $ 1,732,084 $ 1,969,131 (12.0)% (8.2)% The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended December 31, 2024, and 2023: Three Months Ended December 31, 2024 2023 Change Customers Americas 227,556 231,183 (2)% Southeast Asia/Pacific 82,956 106,471 (22)% Mainland China 150,731 207,276 (27)% Japan 110,069 113,670 (3)% Europe & Africa 133,306 163,178 (18)% South Korea 81,301 103,151 (21)% Hong Kong/Taiwan 46,053 52,110 (12)% Total Customers 831,972 977,039 (15)% Paid Affiliates Americas 28,361 31,910 (11)% Southeast Asia/Pacific(1) 26,310 34,404 (24)% Mainland China 22,125 25,889 (15)% Japan 22,318 22,417 — Europe & Africa 16,860 18,888 (11)% South Korea(1) 17,939 22,166 (19)% Hong Kong/Taiwan 10,961 11,212 (2)% Total Paid Affiliates 144,874 166,886 (13)% Sales Leaders Americas 6,778 7,126 (5)% Southeast Asia/Pacific 5,288 6,418 (18)% Mainland China 8,969 11,296 (21)% Japan 6,780 7,086 (4)% Europe & Africa 3,343 3,968 (16)% South Korea 3,343 5,249 (36)% Hong Kong/Taiwan 2,411 2,916 (17)% Total Sales Leaders 36,912 44,059 (16)% (1) The December 31, 2024, number is affected by a change in eligibility requirements for receiving certain rewards within our compensation structure, to more narrowly focus on those affiliates who are actively building a consumer base. We plan to implement these changes in additional segments over the next several quarters. We estimate the change in eligibility requirements resulted in a reduction of approximately 1 thousand for Southeast Asia/Pacific and South Korea. “Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force. “Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks. “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter. NU SKIN ENTERPRISES, INC. Consolidated Statements of Income (Unaudited) (U.S. dollars in thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenue $ 445,552 $ 488,640 $ 1,732,084 $ 1,969,131 Cost of sales 166,405 136,215 550,233 611,850 Gross profit 279,147 352,425 1,181,851 1,357,281 Operating expenses: Selling expenses 165,422 181,326 652,039 742,365 General and administrative expenses 120,930 145,033 479,037 546,858 Restructuring and impairment expenses 45,876 10,003 202,360 19,790 Total operating expenses 332,228 336,362 1,333,436 1,309,013 Operating income (loss) (53,081) 16,063 (151,585) 48,268 Interest expense 5,864 7,368 26,409 25,560 Other income, net 1,143 633 2,943 3,870 Income (loss) before provision for income taxes (57,802) 9,328 (175,051) 26,578 Provision (benefit) for income taxes (21,697) 2,046 (28,457) 17,983 Net income (loss) $ (36,105) $ 7,282 $ (146,594) $ 8,595 Net income (loss) per share: Basic $ (0.73) $ 0.15 $ (2.95) $ 0.17 Diluted $ (0.73) $ 0.15 $ (2.95) $ 0.17 Weighted-average common shares outstanding (000s): Basic 49,712 49,411 49,662 49,711 Diluted 49,712 49,479 49,662 49,860 NU SKIN ENTERPRISES, INC. Consolidated Balance Sheets (Unaudited) (U.S. dollars in thousands) December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 186,883 $ 256,057 Current investments 11,111 11,759 Accounts receivable, net 50,784 58,695 Inventories, net 190,242 279,978 Prepaid expenses and other 72,643 81,066 Current assets held for sale 26,936 14,316 Total current assets 538,599 701,871 Property and equipment, net 379,595 432,965 Operating lease right-of-use assets 72,605 90,107 Goodwill 83,625 218,166 Other intangible assets, net 74,278 95,260 Other assets 298,008 247,606 Long-term assets held for sale 22,204 22,651 Total assets $ 1,468,914 $ 1,808,626 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 34,880 $ 43,113 Accrued expenses 217,808 253,702 Current portion of long-term debt 30,000 25,000 Current liabilities held for sale 13,919 7,056 Total current liabilities 296,607 328,871 Operating lease liabilities 58,439 70,943 Long-term debt 363,613 478,040 Other liabilities 97,475 106,641 Long-term liabilities held for sale 1,325 2,163 Total liabilities 817,459 986,658 Commitments and contingencies Stockholders’ equity Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued 91 91 Additional paid-in capital 627,787 621,853 Treasury stock, at cost – 40.8 million and 41.1 million shares (1,563,614) (1,570,440) Accumulated other comprehensive loss (124,758) (100,006) Retained earnings 1,711,949 1,870,470 Total stockholders’ equity 651,455 821,968 Total liabilities and stockholders’ equity $ 1,468,914 $ 1,808,626 NU SKIN ENTERPRISES, INC. Reconciliation of Gross Margin Excluding Impact of Inventory Write-off to GAAP Gross Margin (in thousands, except for percentages) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Gross Profit $ 279,147 $ 352,425 $ 1,181,851 $ 1,357,281 Impact of inventory write-off 38,765 - 38,765 65,728 Adjusted Gross Profit $ 317,912 $ 352,425 $ 1,220,616 $ 1,423,009 Gross Margin 62.7% 72.1% 68.2% 68.9% Gross Margin, excluding inventory write-off impact 71.4% 72.1% 70.5% 72.3% Revenue $ 445,552 $ 488,640 $ 1,732,084 $ 1,969,131 NU SKIN ENTERPRISES, INC. Reconciliation of Core Nu Skin Business Gross Margin Excluding Impact of Inventory Write-off to GAAP Gross Margin (in thousands, except for percentages) Three months ended December 31, 2024 2023 Gross Profit $ 244,754 $ 327,786 Impact of inventory write-off 32,704 - Adjusted Gross Profit $ 277,458 $ 327,786 Gross Margin 67.5% 77.4% Gross Margin, excluding inventory write-off impact 76.6% 77.4% Revenue $ 362,449 $ 423,539 NU SKIN ENTERPRISES, INC. Reconciliation of Operating Margin Excluding Impact of Certain Charges to GAAP Operating Margin (in thousands, except for percentages) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Operating Income $ (53,081) $ 16,063 $ (151,585) $ 48,268 Impact of inventory write-off 38,765 - 38,765 65,728 Impact of restructuring and impairment 45,876 10,003 202,360 19,790 Impact of other charges(1) 2,940 5,260 2,940 5,260 Adjusted operating income $ 34,500 $ 31,326 $ 92,480 $ 139,046 Operating margin (11.9)% 3.3% (8.8)% 2.5% Operating margin, excluding impact of restructuring and other charges 7.7% 6.4% 5.3% 7.1% Revenue $ 445,552 $ 488,640 $ 1,732,084 $ 1,969,131 (1) Other charges for the fourth quarter and full year 2024 consist of transaction-related expenses incurred related to the sale of Mavely. Other charges for the fourth quarter and full year 2023 consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3 million). NU SKIN ENTERPRISES, INC. Reconciliation of Effective Tax Rate Excluding Impact of Certain Charges to GAAP Effective Tax Rate (in thousands, except for percentages) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Provision (benefit) for income taxes $ (21,697) $ 2,046 $ (28,457) $ 17,983 Impact of restructuring on provision for income taxes 32,604 4,081 55,674 7,324 Provision for income taxes, excluding impact of restructuring $ 10,907 $ 6,127 $ 27,217 $ 25,307 Income (loss) before provision for income taxes (57,802) 9,328 (175,051) 26,578 Impact of inventory write-off 38,765 - 38,765 65,728 Impact of restructuring and impairment 45,876 10,003 202,360 19,790 Impact of other charges(1) 2,940 5,260 2,940 5,260 Income before provision for income taxes, excluding impact of restructuring and other charges $ 29,779 $ 24,591 $ 69,014 $ 117,356 Effective tax rate 37.5% 21.9% 16.3% 67.7% Effective tax rate, excluding impact of restructuring and other charges 36.6% 24.9% 39.4% 21.6% (1) Other charges for the fourth quarter and full year 2024 consist of transaction-related expenses incurred related to the sale of Mavely. Other charges for the fourth quarter and full year 2023 consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3 million). NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share (in thousands, except for per share amounts) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Net income $ (36,105) $ 7,282 $ (146,594) $ 8,595 Impact of Inventory Write-off: Inventory write-off 38,765 - 38,765 65,728 Tax impact (14,643) - (14,643) (4,866) Impact of restructuring and impairment expense: Restructuring and impairment 45,876 10,003 202,360 19,790 Tax impact (17,329) (3,088) (40,399) (1,465) Impact of other charges(1) Impact of other charges 2,940 5,260 2,940 5,260 Tax impact (632) (993) (632) (993) Adjusted net income $ 18,872 $ 18,464 $ 41,797 $ 92,049 Diluted earnings per share $ (0.73) $ 0.15 $ (2.95) $ 0.17 Diluted earnings per share, excluding impact of restructuring and other charges $ 0.38 $ 0.37 $ 0.84 $ 1.85 Weighted-average common shares outstanding (000) 49,712 49,479 49,662 49,860 (1) Other charges for the fourth quarter and full year 2024 consist of transaction-related expenses incurred related to the sale of Mavely. Other charges for the fourth quarter and full year 2023 consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3 million). NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Mavely Sale to GAAP Earnings Per Share Three months ended March 31, 2025 Year ended December 31, 2025 Low end High end Low end High end Earnings Per Share $ 2.65 $ 2.75 $ 3.45 $ 3.85 Impact of Mavely Sale: Pre-tax Mavely sale gain (3.40) (3.40) (3.40) (3.40) Tax impact 0.85 0.85 0.85 0.85 Adjusted EPS $ 0.10 $ 0.20 $ 0.90 $ 1.30 NU SKIN ENTERPRISES, INC. Reconciliation of Revenue Growth Rates Excluding Mavely 2024 Revenue to GAAP Revenue Growth Rates (in thousands, except for percentages) Three months ended March 31, 2025 Year ended December 31, 2025 Low end High end Low end High end 2024 Revenue $ 417,306 $ 417,306 $ 1,732,084 $ 1,732,084 Less: Mavely 2024 Revenue 6,970 6,970 69,620 69,620 2024 Revenue, excluding Mavely $ 410,336 $ 410,336 $ 1,662,464 $ 1,662,464 Revenue Growth Rate (17)% (13)% (15)% (6)% Revenue Growth Rate, excluding Mavely 2024 Revenue (16)% (11)% (11)% (3)% 2025 Forecasted Revenue $ 345,000 $ 365,000 $ 1,480,000 $ 1,620,000

Nu Skin Enterprises Reports Fourth Quarter and Full-year 2024 Results Above Company Revenue Guidance

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