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Mar 31, 2020
Nu Skin Q1 2020 Earnings Report
Nu Skin reported first-quarter 2020 results above guidance, demonstrating stability with strong customer activity despite COVID-19 challenges.
Key Takeaways
Nu Skin Enterprises reported Q1 2020 revenue and earnings above guidance, driven by the efforts of sales leaders and global teams, despite challenges posed by COVID-19. The company saw continued stability with strong customer activity, supported by digital properties and effective supply chain management.
Revenue for Q1 2020 was $518.0 million, a decrease of 17% year-over-year, with a 2% negative impact from foreign exchange rates.
Earnings per share (EPS) for Q1 2020 was $0.36, a 53% decrease compared to the prior-year quarter.
The company highlighted that over 80% of revenue comes through its digital properties, enhanced by strategic investments in technology infrastructure and digital tools.
Nu Skin generated solid cash flow during the quarter, increased its dividend for the 19th consecutive year, and repurchased shares.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Nu Skin anticipates business will perform well as sales leaders leverage technology investments to drive product demand. The situation in Mainland China is stabilizing, which is expected to improve performance throughout the year. The global preview of the newest beauty device late in 2020 is expected to set the business up for a return to growth toward the end of the year. Q2 2020 revenue is expected to be $520 to $550 million, with EPS of $0.42 to $0.52. 2020 revenue is guided at $2.17 to $2.26 billion with EPS of $2.05 to $2.35.
Positive Outlook
- Sales leaders are expected to leverage technology investments to drive product demand and interest in the business opportunity.
- The situation in Mainland China is stabilizing with the country returning to work, a key development expected to translate into improvement throughout the year.
- Similar trends are anticipated in most other markets as pandemic restrictions begin to ease across the globe.
- The global preview of the newest beauty device late in 2020 is expected to set the business up for a return to growth toward the end of the year.
- First-quarter results were encouraging despite economic challenges.
Challenges Ahead
- There is a great deal of uncertainty in the broader economy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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