PROVO, Utah - Nu Skin Enterprises Inc. (NYSE: NUS) reported first-quarter earnings that marginally beat analyst estimates, but shares fell 1.7% as the company's second-quarter guidance disappointed investors.
The beauty and wellness firm posted adjusted earnings of $0.09 per share, surpassing the consensus estimate of $0.05. However, revenue for the quarter was $417.3 million, falling short of the expected $426.55 million.
The company's revenue experienced a 13.3% decline compared to the same period last year, partially attributed to a 3.8% foreign exchange impact. Despite the downturn, Nu Skin's Rhyz business saw a significant revenue increase of 57.5% year-over-year (YoY).
Overall, the first quarter's results met the mid-point of the company's guidance, with earnings per share landing in the upper half, as stated by CEO Ryan Napierski.
He highlighted strong gains in the Rhyz business and noted the impact of the macro-economic environment on the company's core business, including a decrease in affiliate and customer growth.
For the second quarter of 2024, Nu Skin anticipates earnings per share (EPS) to be between $0.10 and $0.20, which is notably below the analyst consensus of $0.34. The expected revenue range is $420 to $455 million, also below the consensus estimate of $454.4 million.
The company's full-year 2024 guidance remains unchanged, with projected EPS between $0.95 and $1.35 and revenue ranging from $1.73 to $1.87 billion. These figures compare to the consensus estimates of $1.14 for EPS and $1.813 billion for revenue.
Nu Skin's CFO James D. Thomas expressed the company's commitment to cost management and efficiency improvements, despite the greater-than-anticipated impact of foreign currency fluctuations. He emphasized the company's focus on initiatives to drive revenue, enhance margins, and solidify the financial position.
Investors seemed to react cautiously to the earnings report and the subsequent guidance, with the stock experiencing a slight decline. The company's approach to navigating the current economic challenges and its efforts to transform its business model will be closely watched in the coming quarters.
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