Nu Skin Reports Record Q2 Results

“We are pleased with our second-quarter results and are confident that our performance keeps us on track for another strong year,” said Truman Hunt, president and chief executive officer. “We continue to fuel our momentum by attracting new distributors, leveraging our exclusive ageLOC product portfolio, focusing on growth in our emerging markets, and consistently improving profitability and shareholder value. We are also looking forward to the fall introduction of additional anti-aging products, which we anticipate will continue to drive consumer demand and steady business growth.”

North Asia. Second-quarter revenue in North Asia grew 12% to $183.1 million. Revenue was positively impacted 11% by foreign currency fluctuations. Local-currency revenue in South Korea increased 25%. As expected, Japan reported a 10% year-over-year decline, largely due to the impact of the natural disasters in March. The number of executive distributors in the region was up 6% and the number of active distributors was up 1% compared to the prior year.

Greater China. Revenue in Greater China declined 2% to $79.4 million for the quarter and was positively impacted 6% by foreign currency fluctuations. The decline was due to a very significant ageLOC product launch in the second quarter of 2010 that boosted revenue by approximately $25 million, contributing to a 53% increase reported in the prior year. Local-currency revenue in Mainland China improved 77%, Taiwan was down 8% and Hong Kong experienced a 61% decline. Individual market comparisons for the quarter were impacted by regional convention sales in Hong Kong in the prior year. Both the executive and active distributor numbers increased 14% compared to the prior-year period.

Americas. Second-quarter revenue in the Americas was $59.8 million, compared to $62.4 million for the prior-year period. Revenue in the US and Canada declined 6% and 14%, respectively, while Latin America improved 21%. The number of executive distributors in the region declined 6% compared to the prior year, while the number of active distributors declined 2%.

South Asia/Pacific. Revenue in South Asia/Pacific rose 29% to $59.2 million. Regional results were positively impacted 11% by foreign currency fluctuations. The region’s second-quarter executive count improved 24% and the active distributor count increased 23%.

Europe. Quarterly revenue in Europe was $42.9 million, a 22% improvement. Results in the region were positively impacted approximately 14% by foreign currency fluctuations. Executive and active distributor counts in the region increased 7% and 8 percent, respectively, compared to the prior year.