Sales: $1.5 billion. Corporate sales: $2.5 billion.
Key Personnel: Truman Hunt, president and chief executive officer; Joseph Y. Chang, PhD, chief scientific officer and executive vice president, product development; Daniel R. Chard, president, global sales and operations; Scott E. Schwerdt, president Nu Skin Americas; Ritch N. Wood, chief financial officer; D. Matthew Dorny, vice president, general counsel and secretary.
Major Products: AgeLOC and Epoch skin care products.
New Products: AgeLOC Me, AgeLOC Youth.
Comments: NuSkin marked its 30th anniversary last year, but there wasn’t much to celebrate. Corporate sales fell 19% and personal care product sales dropped nearly 5%, as the result of Forex and troubles with China, the latter of which led to a dropoff in sales leaders (-39%) and active representatives (-10%). The good news is that Nu Skin’s business in Mainland China stabilized in the second half, as the company revamped its business model to conform to local laws and regulations.
By region, Greater China accounted for 37% of sales, followed by North Asia (30%), Americas (13%), South Asia/Pacific (13%) and Europe, Middle East and Africa (7%). Overall, Nu Skin sells its products in 53 countries. Approximately 91% of 2014 revenues came from outside of the US, and Mainland China was Nu Skin’s biggest revenue market, accounting for approximately 26% of the company’s revenue. Sales in Mainland China fell 33% last year to $675 million, while sales in Hong Kong and Taiwan dropped 24% to $273 million. Overall, 2014 sales in Greater China declined 30% to $948 million. In North Asia, sales in Korea declined less than 1% to $467 million, but sales in Japan fell 22% to $315 million, which the company attributed to a weaker yen.
Elsewhere, sales in the Americas fell 11% to $329 million. Sales in the US and Canada decreased 12% to $272 million and Latin America revenues decreased 4% to $56 million. The company blamed Forex for an 18% decline that was partially offset. Still, sales leaders and actives in the region declined 10% and 4%, respectively. Sales in EMEA fell 7% to $180 million. While Forex played a role in every region, Nu Skin noted that 2014 faced tough comps, as 2013 results were helped along by limited time offers on AgeLOC.
AgeLOC is the company’s biggest brand, accounting for 28% of corporate sales and 46% of personal care sales.
A new year, however, was filled with many of the same old problems, as poor results in Asia continued to drag revenues. First quarter sales fell 19% to $671 million, and net income slid 33% to $36 million.