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Jun 30, 2022
Nu Skin Q2 2022 Earnings Report
Nu Skin's second quarter results were impacted by COVID-related factors, conflict in EMEA, weaker economic conditions, and a strong U.S. dollar.
Key Takeaways
Nu Skin Enterprises reported a decrease in revenue and earnings per share for the second quarter of 2022, impacted by COVID-19, geopolitical issues, and economic conditions. The company is focusing on Nu Vision 2025 and implementing restructuring measures to reduce operating expenses.
Revenue was $560.6 million, a decrease of 20% year-over-year, with a 5% negative impact from foreign exchange rates.
Earnings per share (EPS) was $0.67, or $0.77 excluding charges, compared to $1.15 in Q2 2021.
The company delivered ninth consecutive quarter of growth in the U.S., but saw year-over-year growth in Southeast Asia/Pacific and Hong Kong/Taiwan.
The company is taking aggressive measures to re-align capabilities and resources with a focus on delivering Nu Vision 2025, which will result in a restructuring event in the second half and reduced operating expenses going forward.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company projects revenue of $550 to $590 million for Q3 2022, assuming a negative foreign currency impact of approximately 6 percent, with reported earnings per share of $0.04 to $0.22 or $0.70 to $0.85 when excluding the third-quarter charge of approximately $30 million of the $35 to $45 million estimate.
Positive Outlook
- Introduction of EmpowerMe, our personalized beauty and wellness strategy, with the launch of our connected LumiSpa iO device beginning in the third quarter.
- Expansion of affiliate-powered social commerce by introducing a new affiliate incentive structure known as ‘One Price’ beginning with LumiSpa iO and other select products.
- Further adoption of our recently introduced Vera and Stela apps with expanded languages and functionality.
- Introduction of MyShop in China.
- These actions will benefit the balance of 2022 and provide approximately $100 million in cost savings in 2023.
Challenges Ahead
- Macro factors will continue to weigh on the business in the short-term.
- Heightened global uncertainties and their impact on our business.
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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