Nu Skin Enterprises Reports Q2 2023 Financial Results

Net sales for Nu Skin Enterprises were $500.3 million in Q2 2023 – a figure company officials said is “in line” with company expectations. 

 

Q2 2023 year-over-year operating results were $500.3 million compared to $560.6 million. Q3 and full-year 2023 outlook is $500-$540 million, or 7% to 0.5%. 

 

“Our second quarter results improved sequentially and landed within our guidance range, driven in large part by year-over-year gains in Mainland China and our Rhyz segments,” said Ryan Napierski, Nu Skin president and CEO. “We are seeing early signs of momentum building in Mainland China; however, we continue to be negatively impacted in several key markets by macro-economic factors and associated price increases that have had a dampening effect on consumer spending and customer acquisition.”

 

Napierski said despite the “lingering macro challenges,” the company continues to make steady progress toward its Nu Vision 2025 strategy. In Q3, the company will be rolling out ageLOC TRMe, its personalized weight management system, in China. Other markets will begin introducing ageLOC WellSpa iO, a smart device system focused on holistic wellness and beauty, with consumer launches in Q4 to help the company drive year-over-year growth in the quarter. 

 

To complement these introductions, the company will introduce a new channel growth incentive in the second half to attract new affiliates and develop sales leaders. In addition, its Vera and Stela apps continue to gain healthy traction as downloads and monthly active users exceed expectations, the company reported.

 

Rhyz improved 33% year over year. As part of building its long-term enterprise strategy, Rhyz acquired BeautyBio, an omnichannel, clean and clinically proven skincare and beauty device brand. BeautyBio's unique device IP in hydration facial and micro-needling technology will further strengthen Nu Skin's position as the one of the world's best-selling beauty device systems brands. The company’s expertise in devices, manufacturing and technology will help BeautyBio reach its potential as Nu Skin explores synergies within the Rhyz ecosystem, officials said.

 

“Taking into account first half results, a stronger-than-expected US dollar and recent acquisitions, we are adjusting our 2023 guidance, which continues to show sequential improvements in the back half of the year with a return to year-over-year growth in the fourth quarter,” said James D. Thomas, chief financial officer. “We now anticipate our annual revenue to be $2.00 to $2.08 billion, with an approximate 2 to 3% foreign currency headwind. We are also adjusting reported EPS of $2.15 to $2.45, or $2.30 to $2.60 excluding first quarter restructuring charges. For the third quarter, we project revenue of $500 to $540 million, assuming a negative foreign currency impact of approximately 1 to 2 percent, with reported earnings per share of $0.54 to $0.69.”