Nu Skin announced its financial results for the second quarter of 2024, reporting revenue of $439.1 million, compared to $500.3 million in the same quarter last year. Total customer numbers declined 14% to 893,514 while sales leaders and paid affiliates declined 16% and 17% respectively.
The company stated it was “intensifying” its transformation efforts to become a leading integrated beauty, wellness and lifestyle ecosystem by building synergistic value between its core Nu Skin brand and Rhyz.
“We are pleased with our progress as we perform to plan on our transformational efforts, and we are on track as evidenced by our second quarter results,” said Ryan Napierski, Nu Skin President and CEO. “Our revenue was in-line with our expectations despite a 4 percent FX headwind, while adjusted earnings per share slightly exceeded our projections due to heightened operational discipline, excluding our restructuring and impairment charges. As our core Nu Skin business continues to navigate the macro-economic environment, we were encouraged by sequential gains in several of our markets including the US and most of Southeast Asia/Pacific. Additionally, our Rhyz business grew 32 percent versus the prior-year quarter led by strong performances in our Mavely affiliate platform and manufacturing companies.”
Full-year 2024 revenue guidance now resides between $1.73-$1.81 billion, with third quarter 2024 revenue guidance between $430-$450 million.
“As we continue to refine our operating model during our transformation, we remain diligent in pursuing cost saving initiatives going forward, including additional product portfolio optimization along with expense management,” said James D. Thomas, Nu Skin Chief Financial Officer. “We remain on track with our cost efficiency program as reflected by our reductions in G&A expense, helping to protect profitability despite revenue pressures. During the quarter, we generated $51.2 million in cash from operations, reduced inventory levels and paid down debt to strengthen our balance sheet. We also performed an impairment analysis and recorded a $141 million non-cash charge for impairment of goodwill and other intangibles as a result of the decline in stock price and current market conditions.”
