Exhibit 99.1
FOR IMMEDIATE RELEASE
Nu Skin Enterprises Reports Fourth Quarter and Full-year 2024 Results
Above Company Revenue Guidance
Company provides initial outlook for Q1 and FY 2025
PROVO, Utah — Feb. 13, 2025 — Nu Skin Enterprises
Inc. (NYSE: NUS) today announced fourth quarter and full-year 2024 results above its latest revenue guidance.
Executive Summary
Q4 2024 vs. Prior-year Quarter
|
Revenue
|
|
|
$445.6 million; (8.8)%
• (4.1)% FX impact
or $(20.1) million
• Rhyz revenue
$83.1 million; 27.7%
|
|
Earnings Per Share (EPS)
|
|
|
$(0.73) or $0.38 excluding restructuring and other charges, compared to $0.15 or $0.37 excluding restructuring and other charges
|
|
Customers
|
|
|
831,972; (15)%
|
|
Paid Affiliates
|
|
|
144,874; (13)% or (12)% excluding an adjustment to eligibility requirements
|
|
Sales Leaders
|
|
|
36,912; (16)%
|
Executive Summary
2024 vs. 2023
|
Revenue:
|
|
|
$1.73 billion; (12.0)%
• (3.8)% FX impact
or $(76.1) million
• Rhyz revenue
$286.6 million; 32.3%
|
|
Earnings Per Share (EPS):
|
|
|
$(2.95) or $0.84 excluding restructuring and other charges, compared to $0.17 or $1.85 excluding inventory write-off and other charges
|
“We were pleased to beat our fourth quarter revenue guidance, generate sequential revenue growth and exceed our adjusted earnings as we materially
completed our restructuring plan,” said Ryan Napierski, Nu Skin president and CEO. “As we look ahead to 2025, we anticipate improving business trends and a return to year-over-year growth in several of our markets but also anticipate continued
economic challenges and poor consumer sentiment, particularly in Greater China and South Korea.
“This year we will focus on strengthening our core Nu Skin business with the continued rollout of our enhanced sales performance compensation plan
in several markets as well as accelerating growth in developing markets including Latin America,” continued Napierski. “We are also excited for Prysm iO™, an exclusive intelligent wellness device that will provide consumers with the nutritional
insights needed to look, live and feel better. We anticipate the introduction later this year of this breakthrough technology will infuse energy and future growth for the nutrition side of the business. Also, we were pleased with the strategic
transaction of Mavely for $250 million, which strengthened our balance sheet and underscored the value of Rhyz to incubate and scale meaningful business, as we continue to invest in and advance
our Rhyz segments.”
Q4 2024 Year-over-year Operating Results
|
Revenue
|
|
|
$445.6 million compared to $488.6 million
• (4.1)% FX impact or $(20.1) million
• Rhyz revenue $83.1 million; 27.7%
|
|
Gross Margin
|
|
|
62.7% or 71.4% excluding inventory write-off compared to 72.1%
• Nu Skin business was 67.5% or 76.6% excluding inventory write-off
compared to 77.4%
|
|
Selling Expenses
|
|
|
37.1% compared to 37.1%
• Nu Skin business was 40.3% compared to 40.8%
|
|
G&A Expenses
|
|
|
27.1% compared to 29.7%
|
|
Operating Margin
|
|
|
(11.9)% or 7.7% excluding restructuring and other charges compared to 3.3% or 6.4% excluding restructuring and other charges
|
|
Interest Expense
|
|
|
$5.9 million compared to $7.4 million
|
|
Other Income
|
|
|
$1.1 million compared to $0.6 million
|
|
Income Tax Rate
|
|
|
37.5% or 36.6% excluding restructuring and other charges compared to 21.9% or 24.9% excluding restructuring and other charges
|
|
EPS
|
|
|
$(0.73) or $0.38 excluding restructuring and other charges compared to $0.15 or $0.37 excluding restructuring and other charges
|
Stockholder Value
|
Dividend Payments
|
|
|
$3.0 million
|
|
Stock Repurchases
|
|
|
$0.0 million
• $162.4 million remaining in authorization
|
Q1 and Full-year 2025 Outlook
|
Q1 2025 Revenue
|
|
|
$345 to $365 million; (17)% to (13)% • Approximately (3)%
FX impact
|
|
Q1 2025 EPS
|
|
|
$2.65 to $2.75 or $0.10 to $0.20 excluding the gain from the Mavely transaction
|
|
2025 Revenue
|
|
|
$1.48 to $1.62 billion; (15)% to (6)% or (11)% to (3)% excluding Mavely revenue in 2024 • Approximately (3)% FX impact
|
|
2025 EPS
|
|
|
$3.45 to $3.85 or $ 0.90 to $1.30 excluding the gain from the Mavely transaction |
“We are encouraged by our recent progress in strengthening our business by driving sequential growth in our core Nu Skin business, improving
operational efficiencies and delivering strong cash flow,” said James D. Thomas, chief financial officer. “As we look ahead to 2025, our annual revenue guidance is $1.48 to $1.62 billion, with an approximate 3% foreign currency headwind. We
anticipate reported EPS of $3.45 to $3.85 and growth in our adjusted EPS, which we estimate to be $0.90 to $1.30, excluding the gain from the sale of Mavely. For the first quarter, which is typically our lowest quarter due to seasonality of our
business, we project revenue of $345 to $365 million. This assumes a negative foreign currency impact of approximately 3%, with reported earnings per share of $2.65 to $2.75 or $0.10 to $0.20, excluding the gain from the sale of Mavely. As we’ve
executed on our restructuring plan and improved our cost structure, we are better positioned to execute our strategy and drive earnings growth in 2025.”
Conference Call
The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the
webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company’s website at ir.nuskin.com. A replay of the webcast will be available on the same page through Feb. 27, 2025.
About Nu Skin Enterprises Inc.
The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty and wellness company, powered by a
dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by 40 years of scientific research, the company’s products help people look, feel and live their best with brands including Nu Skin® personal care,
Pharmanex® nutrition and ageLOC® anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of
consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories.
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the
company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s
expectations regarding the macro environment, business trends, the company’s performance, growth and growth opportunities, investments, initiatives, rollout of the enhanced sales performance compensation plan, new product introductions, and
performance of our Rhyz segments; projections regarding revenue, expenses, tax rates, earnings per share, foreign currency fluctuations, uses of cash and other financial items; statements of belief; and statements of assumptions underlying any of
the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “anticipate,” “accelerate,” “vision,” “continue,” “outlook,” “guidance,” “improve,” “will,” “would,” “could,” “may,” “might,”
the negative of these words and other similar words.
The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ
materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:
|
• |
any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a
sustained basis;
|
|
• |
risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a
manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force
actions, imposition of fines, or any other adverse actions or events;
|
|
• |
economic conditions and events globally;
|
|
• |
competitive pressures in the company’s markets;
|
|
• |
risk that epidemics and related disruptions, or other crises could negatively impact our business;
|
|
• |
adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;
|
|
• |
political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets;
|
|
• |
uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business
operations and results;
|
|
• |
risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;
|
|
• |
uncertainties regarding the future financial performance of the businesses the company has acquired;
|
|
• |
risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of
inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
|
|
• |
regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a
market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements; and
|
|
• |
the company’s future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company’s products imported into the company’s markets
outside of the United States, and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various markets.
|
The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated
risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no
duty to update the forward-looking statements contained in this release to reflect any change except as required by law.
Non-GAAP Financial Measures:
Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by
translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue
change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.
Earnings per share, gross margin, operating margin and income tax rate, each excluding inventory write-off charges, restructuring charges, the gain
from the Mavely sale, and/or other charges, as well as revenue growth rate excluding Mavely 2024 revenue, also are non-GAAP financial measures.
|
• |
Inventory write-off charges and restructuring charges are not part of the ongoing operations of our underlying business;
|
|
• |
Mavely revenue is no longer included in our operations following our sale of this business on January 2, 2025; and
|
|
• |
the gain from the Mavely sale, legal accrual, and non-recurring foreign tax charge that have been excluded in the non-GAAP financial measures are not typical for our ongoing
operations.
|
The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of these
items facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, gross margin, operating margin, income tax rate and revenue growth rate calculated under GAAP,
below.
The following table sets forth revenue for the three-month periods ended December 31, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):
|
|
Three Months Ended
December 31,
|
|
|
|
|
|
Constant-
Currency
|
|
| |
|
2024
|
|
|
2023
|
|
|
Change
|
|
|
Change
|
|
|
Nu Skin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
85,356
|
|
|
$
|
97,753
|
|
|
|
(12.7)%
|
|
|
|
3.8%
|
|
|
Southeast Asia/Pacific
|
|
|
64,925
|
|
|
|
66,889
|
|
|
|
(2.9)%
|
|
|
|
(3.4)%
|
|
|
Mainland China
|
|
|
56,438
|
|
|
|
71,516
|
|
|
|
(21.1)%
|
|
|
|
(21.2)%
|
|
|
Japan
|
|
|
47,512
|
|
|
|
50,966
|
|
|
|
(6.8)%
|
|
|
|
(3.8)%
|
|
|
Europe & Africa
|
|
|
42,600
|
|
|
|
47,892
|
|
|
|
(11.0)%
|
|
|
|
(10.1)%
|
|
|
South Korea
|
|
|
33,423
|
|
|
|
48,380
|
|
|
|
(30.9)%
|
|
|
|
(26.7)%
|
|
|
Hong Kong/ Taiwan
|
|
|
32,549
|
|
|
|
41,209
|
|
|
|
(21.0)%
|
|
|
|
(20.0)%
|
|
|
Other
|
|
|
(354)
|
|
|
|
(1,066)
|
|
|
|
66.8%
|
|
|
|
67.0%
|
|
|
Total Nu Skin
|
|
|
362,449
|
|
|
|
423,539
|
|
|
|
(14.4)%
|
|
|
|
(9.7)%
|
|
|
Rhyz
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
|
47,882
|
|
|
|
50,363
|
|
|
|
(4.9)%
|
|
|
|
(4.9)%
|
|
|
|
|
|
35,221
|
|
|
|
14,738
|
|
|
|
139.0%
|
|
|
|
139.0%
|
|
|
Total Rhyz
|
|
|
83,103
|
|
|
|
65,101
|
|
|
|
27.7%
|
|
|
|
27.7%
|
|
|
Total
|
|
$
|
445,552
|
|
|
$
|
488,640
|
|
|
|
(8.8)%
|
|
|
|
(4.7)%
|
|
The following table sets forth revenue for the years ended December 31, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):
|
|
Year Ended
December 31,
|
|
|
|
|
|
Constant-
Currency
|
|
| |
|
2024
|
|
|
2023
|
|
|
Change
|
|
|
Change
|
|
|
Nu Skin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
322,516
|
|
|
$
|
398,222
|
|
|
|
(19.0)%
|
|
|
|
(8.2)%
|
|
|
Southeast Asia/Pacific
|
|
|
244,846
|
|
|
|
267,206
|
|
|
|
(8.4)%
|
|
|
|
(6.4)%
|
|
|
Mainland China
|
|
|
235,235
|
|
|
|
298,079
|
|
|
|
(21.1)%
|
|
|
|
(19.7)%
|
|
|
Japan
|
|
|
181,557
|
|
|
|
207,833
|
|
|
|
(12.6)%
|
|
|
|
(5.9)%
|
|
|
Europe & Africa
|
|
|
164,164
|
|
|
|
192,352
|
|
|
|
(14.7)%
|
|
|
|
(14.6)%
|
|
|
South Korea
|
|
|
163,706
|
|
|
|
236,099
|
|
|
|
(30.7)%
|
|
|
|
(27.7)%
|
|
|
Hong Kong/ Taiwan
|
|
|
130,610
|
|
|
|
153,589
|
|
|
|
(15.0)%
|
|
|
|
(13.3)%
|
|
|
Other
|
|
|
2,832
|
|
|
|
(858)
|
|
|
|
430.1%
|
|
|
|
430.3%
|
|
|
Total Nu Skin
|
|
|
1,445,466
|
|
|
|
1,752,522
|
|
|
|
(17.5)%
|
|
|
|
(13.2)%
|
|
|
Rhyz
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
|
201,430
|
|
|
|
181,395
|
|
|
|
11.0%
|
|
|
|
11.0%
|
|
|
Rhyz Other
|
|
|
85,188
|
|
|
|
35,214
|
|
|
|
141.9%
|
|
|
|
141.9%
|
|
|
Total Rhyz
|
|
|
286,618
|
|
|
|
216,609
|
|
|
|
32.3%
|
|
|
|
32.3%
|
|
|
Total
|
|
$
|
1,732,084
|
|
|
$
|
1,969,131
|
|
|
|
(12.0)%
|
|
|
|
(8.2)%
|
|
The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods
ended December 31, 2024, and 2023:
| |
|
Three Months Ended
December 31,
|
|
|
|
|
| |
|
2024
|
|
|
2023
|
|
|
Change
|
|
|
Customers
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
227,556
|
|
|
|
231,183
|
|
|
|
(2)%
|
|
|
Southeast Asia/Pacific
|
|
|
82,956
|
|
|
|
106,471
|
|
|
|
(22)%
|
|
|
Mainland China
|
|
|
150,731
|
|
|
|
207,276
|
|
|
|
(27)%
|
|
|
Japan
|
|
|
110,069
|
|
|
|
113,670
|
|
|
|
(3)%
|
|
|
Europe & Africa
|
|
|
133,306
|
|
|
|
163,178
|
|
|
|
(18)%
|
|
|
South Korea
|
|
|
81,301
|
|
|
|
103,151
|
|
|
|
(21)%
|
|
|
Hong Kong/Taiwan
|
|
|
46,053
|
|
|
|
52,110
|
|
|
|
(12)%
|
|
|
Total Customers
|
|
|
831,972
|
|
|
|
977,039
|
|
|
|
(15)%
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
28,361
|
|
|
|
31,910
|
|
|
|
(11)%
|
|
|
Southeast Asia/Pacific(1)
|
|
|
26,310
|
|
|
|
34,404
|
|
|
|
(24)%
|
|
|
Mainland China
|
|
|
22,125
|
|
|
|
25,889
|
|
|
|
(15)%
|
|
|
Japan
|
|
|
22,318
|
|
|
|
22,417
|
|
|
|
—
|
|
|
Europe & Africa
|
|
|
16,860
|
|
|
|
18,888
|
|
|
|
(11)%
|
|
|
South Korea(1)
|
|
|
17,939
|
|
|
|
22,166
|
|
|
|
(19)%
|
|
|
Hong Kong/Taiwan
|
|
|
10,961
|
|
|
|
11,212
|
|
|
|
(2)%
|
|
|
Total Paid Affiliates
|
|
|
144,874
|
|
|
|
166,886
|
|
|
|
(13)%
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Leaders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
6,778
|
|
|
|
7,126
|
|
|
|
(5)%
|
|
|
Southeast Asia/Pacific
|
|
|
5,288
|
|
|
|
6,418
|
|
|
|
(18)%
|
|
|
Mainland China
|
|
|
8,969
|
|
|
|
11,296
|
|
|
|
(21)%
|
|
|
Japan
|
|
|
6,780
|
|
|
|
7,086
|
|
|
|
(4)%
|
|
|
Europe & Africa
|
|
|
3,343
|
|
|
|
3,968
|
|
|
|
(16)%
|
|
|
South Korea
|
|
|
3,343
|
|
|
|
5,249
|
|
|
|
(36)%
|
|
|
Hong Kong/Taiwan
|
|
|
2,411
|
|
|
|
2,916
|
|
|
|
(17)%
|
|
|
Total Sales Leaders
|
|
|
36,912
|
|
|
|
44,059
|
|
|
|
(16)%
|
|
| |
(1)
|
The December 31, 2024, number is affected by a change in eligibility requirements for receiving certain rewards within our compensation structure, to more
narrowly focus on those affiliates who are actively building a consumer base. We plan to implement these changes in additional segments over the next several quarters. We estimate the change in eligibility requirements resulted in a
reduction of approximately 1 thousand for Southeast Asia/Pacific and South Korea.
|
|
● |
“Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a
purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force.
|
|
● |
“Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides
Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks.
|
|
● |
“Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements
as of the end of each month of the quarter.
|
NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Revenue
|
|
$
|
445,552
|
|
|
$
|
488,640
|
|
|
$
|
1,732,084
|
|
|
$
|
1,969,131
|
|
|
Cost of sales
|
|
|
166,405
|
|
|
|
136,215
|
|
|
|
550,233
|
|
|
|
611,850
|
|
|
Gross profit
|
|
|
279,147
|
|
|
|
352,425
|
|
|
|
1,181,851
|
|
|
|
1,357,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
165,422
|
|
|
|
181,326
|
|
|
|
652,039
|
|
|
|
742,365
|
|
|
General and administrative expenses
|
|
|
120,930
|
|
|
|
145,033
|
|
|
|
479,037
|
|
|
|
546,858
|
|
|
Restructuring and impairment expenses
|
|
|
45,876
|
|
|
|
10,003
|
|
|
|
202,360
|
|
|
|
19,790
|
|
|
Total operating expenses
|
|
|
332,228
|
|
|
|
336,362
|
|
|
|
1,333,436
|
|
|
|
1,309,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
(53,081
|
)
|
|
|
16,063
|
|
|
|
(151,585
|
)
|
|
|
48,268
|
|
|
Interest expense
|
|
|
5,864
|
|
|
|
7,368
|
|
|
|
26,409
|
|
|
|
25,560
|
|
|
Other income, net
|
|
|
1,143
|
|
|
|
633
|
|
|
|
2,943
|
|
|
|
3,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes
|
|
|
(57,802
|
)
|
|
|
9,328
|
|
|
|
(175,051
|
)
|
|
|
26,578
|
|
|
Provision (benefit) for income taxes
|
|
|
(21,697
|
)
|
|
|
2,046
|
|
|
|
(28,457
|
)
|
|
|
17,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(36,105
|
)
|
|
$
|
7,282
|
|
|
$
|
(146,594
|
)
|
|
$
|
8,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.73
|
)
|
|
$
|
0.15
|
|
|
$
|
(2.95
|
)
|
|
$
|
0.17
|
|
|
Diluted
|
|
$
|
(0.73
|
)
|
|
$
|
0.15
|
|
|
$
|
(2.95
|
)
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (000s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
49,712
|
|
|
|
49,411
|
|
|
|
49,662
|
|
|
|
49,711
|
|
|
Diluted
|
|
|
49,712
|
|
|
|
49,479
|
|
|
|
49,662
|
|
|
|
49,860
|
|
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)
| |
December 31,
|
|
| |
2024
|
|
|
2023
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
186,883
|
|
|
$
|
256,057
|
|
|
Current investments
|
|
|
11,111
|
|
|
|
11,759
|
|
|
Accounts receivable, net
|
|
|
50,784
|
|
|
|
58,695
|
|
|
Inventories, net
|
|
|
190,242
|
|
|
|
279,978
|
|
|
Prepaid expenses and other
|
|
|
72,643
|
|
|
|
81,066
|
|
|
Current assets held for sale
|
|
|
26,936
|
|
|
|
14,316
|
|
|
Total current assets
|
|
|
538,599
|
|
|
|
701,871
|
|
| |
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
379,595
|
|
|
|
432,965
|
|
|
Operating lease right-of-use assets
|
|
|
72,605
|
|
|
|
90,107
|
|
|
Goodwill
|
|
|
83,625
|
|
|
|
218,166
|
|
|
Other intangible assets, net
|
|
|
74,278
|
|
|
|
95,260
|
|
|
Other assets
|
|
|
298,008
|
|
|
|
247,606
|
|
|
Long-term assets held for sale
|
|
|
22,204
|
|
|
|
22,651
|
|
|
Total assets
|
|
$
|
1,468,914
|
|
|
$
|
1,808,626
|
|
| |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
34,880
|
|
|
$
|
43,113
|
|
|
Accrued expenses
|
|
|
217,808
|
|
|
|
253,702
|
|
|
Current portion of long-term debt
|
|
|
30,000
|
|
|
|
25,000
|
|
|
Current liabilities held for sale
|
|
|
13,919
|
|
|
|
7,056
|
|
|
Total current liabilities
|
|
|
296,607
|
|
|
|
328,871
|
|
| |
|
|
|
|
|
|
|
|
|
Operating lease liabilities
|
|
|
58,439
|
|
|
|
70,943
|
|
|
Long-term debt
|
|
|
363,613
|
|
|
|
478,040
|
|
|
Other liabilities
|
|
|
97,475
|
|
|
|
106,641
|
|
|
Long-term liabilities held for sale
|
|
|
1,325
|
|
|
|
2,163
|
|
|
Total liabilities
|
|
|
817,459
|
|
|
|
986,658
|
|
| |
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued
|
|
|
91
|
|
|
|
91
|
|
|
Additional paid-in capital
|
|
|
627,787
|
|
|
|
621,853
|
|
|
Treasury stock, at cost – 40.8 million and 41.1 million shares
|
|
|
(1,563,614)
|
|
|
|
(1,570,440)
|
|
|
Accumulated other comprehensive loss
|
|
|
(124,758)
|
|
|
|
(100,006)
|
|
|
Retained earnings
|
|
|
1,711,949
|
|
|
|
1,870,470
|
|
|
Total stockholders’ equity
|
|
|
651,455
|
|
|
|
821,968
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,468,914
|
|
|
$
|
1,808,626
|
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Gross Margin Excluding Impact of Inventory Write-off to GAAP Gross Margin
(in thousands, except for percentages)
| |
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Gross Profit
|
|
$
|
279,147
|
|
|
$
|
352,425
|
|
|
$
|
1,181,851
|
|
|
$
|
1,357,281
|
|
|
Impact of inventory write-off
|
|
|
38,765
|
|
|
|
-
|
|
|
|
38,765
|
|
|
|
65,728
|
|
|
Adjusted Gross Profit
|
|
$
|
317,912
|
|
|
$
|
352,425
|
|
|
$
|
1,220,616
|
|
|
$
|
1,423,009
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
62.7
|
%
|
|
|
72.1
|
%
|
|
|
68.2
|
%
|
|
|
68.9
|
%
|
|
Gross Margin, excluding inventory write-off impact
|
|
|
71.4
|
%
|
|
|
72.1
|
%
|
|
|
70.5
|
%
|
|
|
72.3
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
445,552
|
|
|
$
|
488,640
|
|
|
$
|
1,732,084
|
|
|
$
|
1,969,131
|
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Core Nu Skin Business Gross Margin Excluding Impact of Inventory Write-off to GAAP Gross Margin
(in thousands, except for percentages)
|
|
Three months ended
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
Gross Profit
|
|
$
|
244,754
|
|
|
$
|
327,786
|
|
|
Impact of inventory write-off
|
|
|
32,704
|
|
|
|
-
|
|
|
Adjusted Gross Profit
|
|
$
|
277,458
|
|
|
$
|
327,786
|
|
| |
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
67.5
|
%
|
|
|
77.4
|
%
|
|
Gross Margin, excluding inventory write-off impact
|
|
|
76.6
|
%
|
|
|
77.4
|
%
|
| |
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
362,449
|
|
|
$
|
423,539
|
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Operating Margin Excluding Impact of Certain Charges to GAAP Operating Margin
(in thousands, except for percentages)
|
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Operating Income
|
|
$
|
(53,081)
|
|
|
$
|
16,063
|
|
|
$
|
(151,585)
|
|
|
$
|
48,268
|
|
|
Impact of inventory write-off
|
|
|
38,765
|
|
|
|
-
|
|
|
|
38,765
|
|
|
|
65,728
|
|
|
Impact of restructuring and impairment
|
|
|
45,876
|
|
|
|
10,003
|
|
|
|
202,360
|
|
|
|
19,790
|
|
|
Impact of other charges(1)
|
|
|
2,940
|
|
|
|
5,260
|
|
|
|
2,940
|
|
|
|
5,260
|
|
|
Adjusted operating income
|
|
$
|
34,500
|
|
|
$
|
31,326
|
|
|
$
|
92,480
|
|
|
$
|
139,046
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
(11.9)
|
%
|
|
|
3.3
|
%
|
|
|
(8.8)
|
%
|
|
|
2.5
|
%
|
|
Operating margin, excluding impact of restructuring and other charges
|
|
|
7.7
|
%
|
|
|
6.4
|
%
|
|
|
5.3
|
%
|
|
|
7.1
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
445,552
|
|
|
$
|
488,640
|
|
|
$
|
1,732,084
|
|
|
$
|
1,969,131
|
|
(1) Other charges for the fourth quarter and full
year 2024 consist of transaction-related expenses incurred related to the sale of Mavely. Other charges for the fourth quarter and full year 2023 consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3
million).
NU SKIN ENTERPRISES, INC.
Reconciliation of Effective Tax Rate Excluding Impact of Certain Charges to GAAP Effective Tax Rate
(in thousands, except for percentages)
|
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Provision (benefit) for income taxes
|
|
$
|
(21,697)
|
|
|
$
|
2,046
|
|
|
$
|
(28,457)
|
|
|
$
|
17,983
|
|
|
Impact of restructuring on provision for income taxes
|
|
|
32,604
|
|
|
|
4,081
|
|
|
|
55,674
|
|
|
|
7,324
|
|
|
Provision for income taxes, excluding impact of restructuring
|
|
$
|
10,907
|
|
|
$
|
6,127
|
|
|
$
|
27,217
|
|
|
$
|
25,307
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes
|
|
|
(57,802)
|
|
|
|
9,328
|
|
|
|
(175,051)
|
|
|
|
26,578
|
|
|
Impact of inventory write-off
|
|
|
38,765
|
|
|
|
-
|
|
|
|
38,765
|
|
|
|
65,728
|
|
|
Impact of restructuring and impairment
|
|
|
45,876
|
|
|
|
10,003
|
|
|
|
202,360
|
|
|
|
19,790
|
|
|
Impact of other charges(1)
|
|
|
2,940
|
|
|
|
5,260
|
|
|
|
2,940
|
|
|
|
5,260
|
|
|
Income before provision for income taxes, excluding impact of restructuring and other charges
|
|
$
|
29,779
|
|
|
$
|
24,591
|
|
|
$
|
69,014
|
|
|
$
|
117,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
37.5
|
%
|
|
|
21.9
|
%
|
|
|
16.3
|
%
|
|
|
67.7
|
%
|
|
Effective tax rate, excluding impact of restructuring and other charges
|
|
|
36.6
|
%
|
|
|
24.9
|
%
|
|
|
39.4
|
%
|
|
|
21.6
|
%
|
(1) Other charges for the fourth quarter and full
year 2024 consist of transaction-related expenses incurred related to the sale of Mavely. Other charges for the fourth quarter and full year 2023 consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3
million).
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share
(in thousands, except for per share amounts)
| |
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Net income
|
|
$
|
(36,105)
|
|
|
$
|
7,282
|
|
|
$
|
(146,594)
|
|
|
$
|
8,595
|
|
|
Impact of Inventory Write-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory write-off
|
|
|
38,765
|
|
|
|
-
|
|
|
|
38,765
|
|
|
|
65,728
|
|
|
Tax impact
|
|
|
(14,643)
|
|
|
|
-
|
|
|
|
(14,643)
|
|
|
|
(4,866)
|
|
|
Impact of restructuring and impairment expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and impairment
|
|
|
45,876
|
|
|
|
10,003
|
|
|
|
202,360
|
|
|
|
19,790
|
|
|
Tax impact
|
|
|
(17,329)
|
|
|
|
(3,088)
|
|
|
|
(40,399)
|
|
|
|
(1,465)
|
|
|
Impact of other charges(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of other charges
|
|
|
2,940
|
|
|
|
5,260
|
|
|
|
2,940
|
|
|
|
5,260
|
|
|
Tax impact
|
|
|
(632)
|
|
|
|
(993)
|
|
|
|
(632)
|
|
|
|
(993)
|
|
|
Adjusted net income
|
|
$
|
18,872
|
|
|
$
|
18,464
|
|
|
$
|
41,797
|
|
|
$
|
92,049
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
(0.73)
|
|
|
$
|
0.15
|
|
|
$
|
(2.95)
|
|
|
$
|
0.17
|
|
|
Diluted earnings per share, excluding impact of restructuring and other charges
|
|
$
|
0.38
|
|
|
$
|
0.37
|
|
|
$
|
0.84
|
|
|
$
|
1.85
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (000)
|
|
|
49,712
|
|
|
|
49,479
|
|
|
|
49,662
|
|
|
|
49,860
|
|
(1) Other charges for the fourth quarter and full
year 2024 consist of transaction-related expenses incurred related to the sale of Mavely. Other charges for the fourth quarter and full year 2023 consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3
million).
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Mavely Sale to GAAP Earnings Per Share
| |
|
Three months ended
March 31, 2025
|
|
|
Year ended
December 31, 2025
|
|
| |
|
Low end
|
|
|
High end
|
|
|
Low end
|
|
|
High end
|
|
|
Earnings Per Share
|
|
$
|
2.65
|
|
|
$
|
2.75
|
|
|
$
|
3.45
|
|
|
$
|
3.85
|
|
|
Impact of Mavely Sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Mavely sale gain
|
|
|
(3.40)
|
|
|
|
(3.40)
|
|
|
|
(3.40)
|
|
|
|
(3.40)
|
|
|
Tax impact
|
|
|
0.85
|
|
|
|
0.85
|
|
|
|
0.85
|
|
|
|
0.85
|
|
|
Adjusted EPS
|
|
$
|
0.10
|
|
|
$
|
0.20
|
|
|
$
|
0.90
|
|
|
$
|
1.30
|
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Revenue Growth Rates Excluding Mavely 2024 Revenue to GAAP Revenue Growth Rates
(in thousands, except for percentages)
|
|
Three months ended
March 31, 2025
|
|
|
Year ended
December 31, 2025
|
|
| |
|
Low end
|
|
|
High end
|
|
|
Low end
|
|
|
High end
|
|
|
2024 Revenue
|
|
$
|
417,306
|
|
|
$
|
417,306
|
|
|
$
|
1,732,084
|
|
|
$
|
1,732,084
|
|
|
Less: Mavely 2024 Revenue
|
|
|
6,970
|
|
|
|
6,970
|
|
|
|
69,620
|
|
|
|
69,620
|
|
|
2024 Revenue, excluding Mavely
|
|
$
|
410,336
|
|
|
$
|
410,336
|
|
|
$
|
1,662,464
|
|
|
$
|
1,662,464
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Growth Rate
|
|
|
(17)
|
%
|
|
|
(13)
|
%
|
|
|
(15)
|
%
|
|
|
(6)
|
%
|
|
Revenue Growth Rate, excluding Mavely 2024 Revenue
|
|
|
(16)
|
%
|
|
|
(11)
|
%
|
|
|
(11)
|
%
|
|
|
(3)
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 Forecasted Revenue
|
|
$
|
345,000
|
|
|
$
|
365,000
|
|
|
$
|
1,480,000
|
|
|
$
|
1,620,000
|
|
# # #
CONTACTS:
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577
