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Dec 31, 2019
Nu Skin Q4 2019 Earnings Report
Nu Skin's Q4 2019 performance was in line with expectations, but sales leader count declined due to challenges in Mainland China. The company held a global convention and experienced growth in manufacturing entities. Guidance for 2020 was provided, taking into account the expected impact of the coronavirus outbreak.
Key Takeaways
Nu Skin Enterprises reported Q4 2019 revenue of $583.4 million and EPS of $0.72. The company's sales leader count decreased, primarily driven by a decline in Mainland China, while manufacturing entities experienced growth. The company provided 2020 guidance, anticipating the coronavirus outbreak to significantly impact the business in the near term.
Q4 revenue was $583.4 million, a decrease of 15% year-over-year.
Earnings per share (EPS) was $0.72, a 325% increase compared to the prior year, which included impairment and restructuring charges.
Sales Leaders decreased by 25% to 54,760.
Customer base decreased by 7% to 1,162,905.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q1 2020, Nu Skin projects revenue of $480 to $510 million and EPS of $0.23 to $0.33. For the full year 2020, the company projects revenue of $2.17 to $2.30 billion and EPS of $2.00 to $2.40, anticipating a return to growth in Q4 driven by a new beauty device launch, but expecting a decline in sales in mainland China due to the coronavirus outbreak.
Positive Outlook
- Focus on building sales leaders through technology enhancements.
- Strong product launch planned.
- Exciting product pipeline, including a new beauty device in the second half of the year.
- Momentum expected from the new beauty device launch to accelerate customer and sales leader acquisition.
- Anticipate the overall business will return to growth in the fourth quarter of 2020, driven by the launch of a new beauty device.
Challenges Ahead
- Temporary hold on all in-person meetings with sales force and customers in Mainland China due to the coronavirus outbreak.
- Expect the outbreak to significantly impact business in the near term.
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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