Nu Skin Reports First Quarter Results

Nu Skin Enterprises reported first quarter results today. The company’s reported revenue was $210.3 million compared to $213.6 million for the first quarter of 2000. Net income was $12.6 million and earnings per share were $0.15 compared to $14.9 million and $0.17 per share for the same prior-year period. “Global revenue was up 6% year-over-year in constant currency, and we were pleased to realize overall results that were within our expectations,” said Steven J. Lund, president and chief executive officer, commenting on first quarter results. “Weak foreign currencies negatively impacted our reported revenue, however, offsetting significant product sales from a global distributor convention held in February.”

Revenue from the Nu Skin division during the first quarter was down 2% year-over-year in constant currency terms, and down 10 percent on a reported U.S. dollar basis to $100.1 million. Two of the products introduced at the convention, the Galvanic Spa System and Tru Face Line Corrector, quickly became two of the division’s top selling products in the U.S. These and other new products will be rolled out globally during 2001.

Mr. Lund emphasized that the company’s priorities during 2001 will be to accomplish five major goals, which are:

* to grow the U.S. business;

* to refine the company’s divisional strategy;

* to increase distributor productivity through Internet and automatic delivery type programs;

* to further tighten cost controls consistent with projected revenue levels; and,to globalize new product offerings.

“These priorities reflect our commitment to constantly adapt to meet the changing business environment in which we operate. While always supporting the need for stability in our business, we will staunchly adhere to the tenet that our business success comes from adjusting, as necessary, both our goals and the tactics necessary to reach them,” he concluded