Nu Skin Enterprises, Inc. reported record third-quarter results with revenue of $927.6 million, a 76% increase over the prior-year period. Revenue was negatively impacted 3% by foreign currency fluctuations. Earnings per share for the quarter were $1.80, a 107% year-over-year improvement. Additionally, the company announced that it is significantly increasing its full-year 2013 revenue guidance to $3.18 billion to $3.21 billion. The new guidance includes a projected negative currency impact of 4% for the year. The company now expects 2013 earnings to be $5.77 to $5.82 per share.
"We are extremely pleased with our third-quarter results," said Truman Hunt, president and chief executive officer. "The momentum we have established in the first half of the year has accelerated as we posted gains throughout the world, with particularly impressive results in the Greater China and South Asia/Pacific regions, as well as South Korea.
"We are delighted to see such a tremendous response to the initial introduction of our ageLOC TR90 weight management system. We began the limited-time-offer of the TR90 system in September, starting in the Greater China and South Asia/Pacific regions and generated approximately $205 million in limited-time-offer sales in the quarter. We expect this momentum to continue through the fourth quarter as the rest of our regions participate in this global limited-time offer."
In Greater China, third-quarter revenue increased 240% to $464.6 million. The region's results were positively impacted 9% by foreign currency fluctuations. Regional revenue included $157.9 million from limited-time-offer (LTO) sales in the third quarter, while the prior year included $20.8 million in LTO revenue. The sales leader count in the region improved 255%, while the number of actives increased 123% compared to the prior year.
Third-quarter revenue in North Asia increased 11% to $204.7 million. The region's results were negatively impacted 12% by foreign currency fluctuations. Japan local-currency revenue declined 3% while South Korea generated local-currency revenue growth of 71%. The number of sales leaders in the region was up 15% and the number of actives improved 28%.
Revenue in South Asia/Pacific was $127.5 million, a 40% improvement. The region's results included $45.9 million from LTO sales in the third quarter, while the prior-year included $29.3 million in LTO revenue. The region's results were negatively impacted 6% by foreign currency fluctuations. The region's third-quarter sales leader count improved 58% and actives increased 19% compared to the same period in 2012.
Revenue in the Americas improved 22% over the prior-year period to $85.7 million. The region's results were negatively impacted 7% by foreign currency fluctuations. The number of sales leaders in the region improved 28% and the number of actives increased 8%
compared to the prior year.
Revenue in the EMEA region increased 4% to $45.1 million, primarily as a result of foreign currency fluctuations. The number of sales leaders declined 5% while actives increased 2 percent, compared to the prior year.
"Our optimism is a product of robust sales force growth and our innovative product portfolio," said Hunt. "Our sales force has built strong consumer demand for our ageLOC TR90 system, with a very positive initial response to our product release. We continue to improve our execution as we strategically develop and launch innovative products, ensuring a vibrant business opportunity for our sales leaders.
Hunt said the company has high expectations for its business in the fourth quarter and in 2014 as Nu Skin continues to roll out TR90.
"Given the tremendous quarter, as well as our outlook for the remainder of the year, we are significantly raising our 2013 guidance," said Ritch Wood, chief financial officer. "We project the fourth quarter will be our first billion-dollar quarter, with anticipated revenue of $1.02 to $1.05 billion. We estimate a negative currency impact of approximately 6% in the fourth quarter, with projected earnings per share of $1.85 to $1.90. This forecast includes projected sales of TR90 in the fourth quarter of approximately $350 million."