Nu Skin Reports Record 1Q Revenue Rose 20%

Nu Skin Enterprises, Inc., Provo, UT, posted record first quarter revenue of $264.0 million, an increase of 20% over last year for the quarter ended March 31. Earnings per share grew 25% for the same period. Momentum in Mainland China, growth in the U.S. nutrition business, continued stability in Japan and beneficial foreign currency fluctuations helped the company exceed previous financial guidance.

“We are encouraged with our record first quarter revenue,” said Truman Hunt, president and chief executive officer. “Mainland China continued to excel, posting revenue of $23 million in the quarter compared to $18 million in the fourth quarter of 2003. Japan reported 1% year-over-year local currency revenue growth. Revenue in the U.S. was up 16%, benefiting from sales at our February global distributor convention and growth in our nutrition business.”

He added that the number of active distributors and preferred customers increased 23% as well. During the quarter, the company posted a $0.9 million loss in other income compared to a $0.6 million gain in the first quarter of 2003. Net income rose to $14.5 million compared to $12.8 million for the first quarter of 2003.

“Japan, the U.S. and Mainland China remain our key geographic priorities,” Mr. Hunt insisted. “We are preparing for a fourth quarter 2004 launch of the Pharmanex BioPhotonic Scanner in Japan. In the U.S., the Pharmanex Scanner and customer retention initiatives will continue to be the primary revenue growth drivers. Our immediate objective in Mainland China is to train our growing sales force, enabling us to build a strong foundation for what has become an important market for us.”