Nu Skin Enterprises Reports Q2 Financial Results

Revenue for Nu Skin Enterprises, Inc. saw a year-over-year decline from $704.1 million to $560.6 million for the second quarter.   

 

The foreign exchange impact was 5% or $34.6 million. 

 

Earnings per share (EPS) were $0.67 or $0.77, excluding charges associated with the company’s Q4 2021 exit from Grow Tech, compared to $1.15 in Q2 2021.

 

“As previously announced, our second quarter results were impacted by extended Covid-19-related factors in Mainland China, distractions in EMEA related to the ongoing conflict, weaker global economic conditions impacting emerging markets and the record strength of the US dollar,” said Ryan Napierski, Nu Skin president and CEO. “Despite these challenges, we delivered our ninth consecutive quarter of growth in the US on the strength of new product launches and our social commerce model. Additionally, we drove year-over-year growth in our Southeast Asia/Pacific and Hong Kong/Taiwan segments due to the successful launch of ageLOC Meta and early social commerce adoption.

 

CFO Mark Lawrence said the company is adjusting its annual guidance. 

 

“Our 2022 revenue guidance is now expected to be $2.33 to $2.41 billion, with an approximate 5% foreign currency headwind,” he said. “We anticipate reported EPS of $2.46 to $2.76 or $3.30 to $3.60, excluding the Q2 charges associated with our Q4 2021 exit from Grow Tech, as well as second half restructuring and impairment charges of $35 to $45 million associated with the strategic reallocation of our capabilities and resources toward Nu Vision 2025. We believe these actions will benefit the balance of 2022 and provide approximately $100 million in cost savings in 2023. For the third quarter, we project revenue of $550 to $590 million, assuming a negative foreign currency impact of approximately 6 percent, with reported earnings per share of $0.04 to $0.22 or $0.70 to $0.85 when excluding the third-quarter charge of approximately $30 million of the $35 to $45 million estimate.”