Nu Skin’s 3Q Revenue Rises 12%

“Our strong quarterly results fuel our optimism for the future, particularly as we head into our next ageLOC product launch cycle that begins this month,” said Truman Hunt, president and chief executive officer. “We are also pleased with 14% growth in the number of executive distributors this quarter, as well as with ongoing strength in emerging markets and continued operating margin improvements.

At the beginning of October, NuSkin began taking orders for its latest ageLOC innovations, the R2 nutritional supplement and the Body Galvanic Spa, which is used with two new ageLOC body treatment gels. “These products are being offered for a limited time in conjunction with this week’s global distributor convention. Orders have totaled approximately $100 million, well ahead of our expectations, which bodes well for the roll out of these products throughout 2012,” Hunt said.

“With very positive momentum in the business we are looking forward to welcoming more than 13,000 distributors to this week’s global convention. This is our highest attendance level ever at a global convention. New products and the healthy direction of our business combine to make it a very exciting time to be part of Nu Skin Enterprises,” Hunt added.

By region, third-quarter revenue in North Asia was $184.3 million, compared to $170.5 million for the same period in 2010. The region’s results benefited approximately 10% from foreign currency fluctuations. South Korea experienced a local-currency revenue improvement of 22% offset by an expected Japan local-currency revenue decline of 11 percent. The number of executive distributors in the region was up 8 percent while the number of active distributors improved 3 percent.

Third-quarter revenue in Greater China increased 32% to $83.4 million, compared to $63.3 million in the prior-year period. Foreign currency fluctuations positively impacted revenue 7%. Local-currency revenue in Mainland China improved 69% over the same quarter in 2010, while Hong Kong increased 3% and Taiwan declined 5%. The executive distributor count in the region improved 39% while the number of active distributors increased by 15 percent compared to the prior-year.

Revenue in South Asia/Pacific was $61.8 million, a 23% improvement compared to the prior year. Sales in the quarter were positively impacted 8% by foreign currency fluctuations.

Revenue in the Americas declined 7% to $59.4 million, compared to $63.7 million in the prior-year period. The United States posted a 10 percent decrease during the quarter, while Canada declined 20% in local-currency revenue. Latin America constant-currency revenue grew by 58%, benefiting from the opening of Argentina earlier this year. The number of executive distributors declined 8 percent while the number of active distributors increased 1 percent during the quarter.

Revenue in Europe was $39.5 million, an 11 percent improvement over the prior-year period. Results in the region were positively impacted approximately 8 percent by foreign currency fluctuations. Executive and active distributor counts in Europe increased 6 and 7 percent, respectively, compared to the prior year.