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Jun 30, 2020
Nu Skin Q2 2020 Earnings Report
Nu Skin's Q2 2020 earnings exceeded expectations, driven by its business model and strategic investments, and raised its 2020 guidance.
Key Takeaways
Nu Skin Enterprises reported second-quarter results above expectations and raised its revenue and earnings per share guidance for 2020. Strong global customer growth of 29 percent in the quarter, driven by focus on empowering sales leaders to reach more customers, resulted in constant currency revenue growth due to the strength of business in the Americas and Europe.
Business performed well above expectations driven by socially enabled business model and strategic investments.
Strong global customer growth of 29 percent driven by focus on empowering sales leaders.
Manufacturing division generated 20 percent revenue growth and increased stability in supply chain.
Generated strong cash from operations, raised dividend, strengthened balance sheet and reduced outstanding shares by nearly eight percent.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company anticipates revenue of $605 to $635 million for Q3 2020, which includes 1 to 2 percent unfavorable foreign currency impact, and earnings per share of $0.78 to $0.88. The company is raising its 2020 revenue guidance to $2.37 to $2.45 billion, which reflects a negative foreign currency impact of 2 to 3 percent, and anticipates annual earnings per share of $2.85 to $3.10.
Positive Outlook
- Improved productivity of sales leaders is driving strong customer growth.
- Sales force expansion as we move toward the introduction of our ageLOC Boost device and Nutricentials Bioadaptive Skin Care in the second half.
- Expansion of socially enabled business around the world with the release of our latest digital tool, Vera, a personal product recommendation app.
Challenges Ahead
- 1 to 2 percent unfavorable foreign currency impact in Q3 2020 revenue guidance.
- Negative foreign currency impact of 2 to 3 percent in 2020 revenue guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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