Shares of Nu Skin Enterprises hit their lowest price in more than a year on Wednesday after the company slashed its revenue guidance due to foreign-currency issues and lackluster sales in its China region.
In a statement released ahead of Nu Skin’s 2015 Global Convention, management stated that third-quarter revenue will amount to roughly $573 million. The seller of skincare and nutrition products previously projected sales of as much as $620 million. Analysts had set more optimistic predictions, with an average estimate of $622.6 million. One contributor to the downgrade was the strengthening of the U.S. dollar, which created a foreign currency headwind and negatively impacted revenue by more than $60 million compared to the previous year.
After climbing 6.6 percent this year, Nu Skin stock fell as much as 26.9 percent on Wednesday before closing the day down 25.7 percent at $34.62. The company’s expected third-quarter results would represent a year-over-year decrease of approximately 10 percent. For the last quarter, Nu Skin reported revenue of $560 million.
The shortfall also stems from weak sales in China, which accounts for 32 percent of Nu Skin’s total revenue. Lower-than-expected sales of the brand’s new cosmetic oils were a major factor, and may reflect economic conditions in the wider Chinese market, Nu Skin CEO Truman Hunt said in a statement.
“Given the successful launch of ageLOC Youth in South Asia/Pacific, we look forward to the introduction of ageLOC Youth as well as ageLOC Me in most of our regions during the fourth quarter,” said Hunt. “We forecast year-over-year constant-currency revenue growth of between 7 and 10 percent in the fourth quarter.”
In September, Nu Skin promoted one of its Asia executives, Ryan Napierski, to lead the company’s global sales organization. Napierski spent the past eight years in the region, most recently serving as President of both Nu Skin Japan and Nu Skin North Asia. Before transferring to Asia, Napierski helped to advance the brand in Europe as Vice President of European Business Development.
Nu Skin will release its earnings results for the third quarter on Nov. 5.