Nu Skin Enterprises Reports First Quarter Revenue at High End of Guidance

Published: 2025-05-08 16:24:04 ET NUS

Published on 05/08/2025 at 16:24

Nu Skin Enterprises Inc. (NYSE: NUS) today announced first quarter revenue at the high end of its guidance range.

Executive Summary Q1 2025 vs. Prior-year Quarter

Revenue

$364.5 million; (12.7)%

Earnings Per Share (EPS)

$2.14 or $0.23 excluding Mavely gain and other charges compared to $(0.01) or $0.09 excluding restructuring charges

Customers

776,712; (11)%

Paid Affiliates

131,518; (15)%

Sales Leaders

31,036; (20)%

“We are pleased to achieve revenue at the high end of our guidance range and exceed our adjusted earnings forecast to start out the year,” said Ryan Napierski, Nu Skin president and CEO. “We drove year-over-year growth in Latin America and our Rhyz manufacturing segment, but we continue to experience consumer caution in premium beauty due to concerns such as inflation and tariffs in many parts of the world. Through 2025, we remain focused on building on our recent product launches and preparing for the preview of our Prysm iO intelligent wellness device in the back half of the year. This palm-sized device provides real-time insights into a customer's health, informing recommendations for product subscriptions and increasing customer satisfaction and loyalty. We are also laying the groundwork for expansion into India with a market pre-opening in Q4 and formal launch in mid-2026 and prioritizing our efforts to continue improving margins across the board.”

Q1 2025 Year-over-year Operating Results

Revenue

$364.5 million compared to $417.3 million

Gross Margin

67.8% compared to 70.5%

Selling Expenses

32.5% compared to 36.8%

G&A Expenses

31.1% or 28.9% excluding certain charges compared to 29.9%

Restructuring and Impairment Expenses

$25.1 million impairment compared to $7.3 million restructuring charges

Operating Margin

(2.7)% or 6.4% excluding impairment and other charges compared to 2.1% or 3.8% excluding restructuring charges

Interest Expense

$3.3 million compared to $7.3 million

Gain on Sale of Business

$176.2 million gain on sale of Mavely

Other Expense

$28.4 million compared to $0.4 million

Income Tax Rate

20.1% or 41.9% excluding Mavely gain and other charges compared to 148.4% or 48.5% excluding restructuring charges

EPS

$2.14 or $0.23 excluding Mavely gain and other charges compared to $(0.01) or $0.09 excluding restructuring charges

Stockholder Value

Dividend Payments

$3.0 million

Stock Repurchases

$5.0 million

Q2 and Full-year 2025 Outlook

Q2 2025 Revenue

$355 to $390 million; (19)% to (11)% or (17)% to (9)% excluding Mavely 2024 revenue

Q2 2025 EPS

$0.20 to $0.30

2025 Revenue

$1.48 to $1.62 billion; (15)% to (6)% or (11)% to (3)% excluding Mavely 2024 revenue

2025 EPS

$2.80 to $3.20 or $0.90 to $1.30 excluding Mavely gain and other charges

“In addition to delivering on revenue and adjusted earnings, we saw encouraging improvement in core Nu Skin operating margin, driven by ongoing cost efficiency initiatives across every segment,” said James D. Thomas, chief financial officer. “We also made meaningful progress in strengthening our balance sheet by reducing outstanding debt by $155 million, achieving our lowest debt level in more than 10 years. In addition, we returned $8 million to shareholders — $3 million in the form of dividends and $5 million via share repurchases. While macroeconomic uncertainty around trade tensions and tariffs continues to impact visibility, we are maintaining our adjusted annual guidance as we closely monitor developments throughout the remainder of 2025. For the second quarter, we project revenue between $355 million and $390 million, with earnings per share in the range of $0.20 to $0.30.”

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 May 22, 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 and the company’s performance, growth and growth opportunities, shareholder value, product previews and launches, investments, initiatives, and new market expansion; projections regarding revenue, expenses, margins, tax rates, earnings per share, foreign currency fluctuations, uses of cash, financial position 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,” “project,” “vision,” “remain,” “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:

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, general & administrative expenses, operating margin and income tax rate, each excluding the gain from the Mavely sale, restructuring charges, impairment charges, and/or other charges, as well as revenue growth rate excluding Mavely 2024 revenue, also are non-GAAP financial measures.

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, general & administrative expenses, 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 March 31, 2025, and 2024 for each of our reportable segments (U.S. dollars in thousands):

Three Months Ended

March 31,

Constant- Currency

2025

2024

Change

Nu Skin

Americas

69,058

75,031

(8.0)%

(1.3)%

Southeast Asia/Pacific

52,172

60,065

(13.1)%

(12.0)%

Mainland China

47,775

61,067

(21.8)%

(20.6)%

Japan

42,765

44,236

(3.3)%

(0.8)%

Europe & Africa

33,021

42,273

(21.9)%

(19.5)%

South Korea

32,515

40,963

(20.6)%

(13.3)%

Hong Kong/Taiwan

28,447

30,466

(6.6)%

(4.0)%

Other

529

672

(21.3)%

Total Nu Skin

306,282

354,773

(13.7)%

(10.2)%

Rhyz

Manufacturing

55,290

50,302

9.9%

Rhyz other

2,918

12,231

(76.1)%

Total Rhyz

58,208

62,533

(6.9)%

Total

364,490

417,306

(12.7)%

(9.7)%

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 March 31, 2025, and 2024:

Three Months Ended

March 31,

2025

2024

Change

Customers

Americas

227,514

199,399

14%

Southeast Asia/Pacific

74,584

93,411

(20)%

Mainland China

122,474

162,239

(25)%

Japan

107,742

108,808

(1)%

Europe & Africa

130,154

163,481

(20)%

South Korea

71,721

100,230

(28)%

Hong Kong/Taiwan

42,523

47,693

(11)%

Total Customers

776,712

875,261

(11)%

Paid Affiliates

Americas

26,936

29,081

(7)%

Southeast Asia/Pacific

22,296

29,778

(25)%

Mainland China

19,859

24,405

(19)%

Japan

21,073

21,679

(3)%

Europe & Africa

15,184

18,313

(17)%

South Korea

16,548

20,594

(20)%

Hong Kong/Taiwan

9,622

10,321

(7)%

Total Paid Affiliates

131,518

154,171

(15)%

Sales Leaders

Americas

6,174

6,616

(7)%

Southeast Asia/Pacific

4,542

5,570

(18)%

Mainland China

6,214

9,600

(35)%

Japan

6,210

6,385

(3)%

Europe & Africa

2,839

3,715

(24)%

South Korea

2,850

4,122

(31)%

Hong Kong/Taiwan

2,207

2,601

(15)%

Total Sales Leaders

31,036

38,609

(20)%

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

(U.S. dollars in thousands, except per share amounts)

Three Months Ended

March 31,

2025

2024

Revenue

364,490

417,306

Cost of sales

117,529

123,242

Gross profit

246,961

294,064

Operating expenses:

Selling expenses

118,546

153,542

General and administrative expenses

113,204

124,566

Restructuring and impairment expenses

25,114

7,134

Total operating expenses

256,864

285,242

Operating income (loss)

(9,903)

8,822

Interest expense

3,283

7,325

Gain on sale of business

176,162

—

Other expense, net

(28,375)

(396)

Income before provision for income taxes

134,601

1,101

Provision for income taxes

27,086

1,634

Net income (loss)

107,515

(533)

Net income (loss) per share:

Basic

2.16

(0.01)

Diluted

2.14

(0.01)

Weighted-average common shares outstanding (000s):

Basic

49,764

49,538

Diluted

50,328

49,538

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

March 31,

2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

203,770

186,883

Current investments

9,781

11,111

Accounts receivable, net

56,576

50,784

Inventories, net

188,776

190,242

Prepaid expenses and other

65,954

72,643

Current assets held for sale

—

26,936

Total current assets

524,857

538,599

Property and equipment, net

380,067

379,595

Operating lease right-of-use assets

79,389

72,605

Goodwill

83,625

Other intangible assets, net

47,554

74,278

Other assets

275,919

298,008

Long-term assets held for sale

—

22,204

Total assets

1,391,411

1,468,914

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

33,590

34,880

Accrued expenses

206,710

217,808

Current portion of long-term debt

20,000

30,000

Current liabilities held for sale

—

13,919

Total current liabilities

260,300

296,607

Operating lease liabilities

61,949

58,439

Long-term debt

218,757

363,613

Other liabilities

96,436

97,475

Long-term liabilities held for sale

—

1,325

Total liabilities

637,442

817,459

Commitments and contingencies

Stockholders’ equity:

Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued

Additional paid-in capital

623,477

627,787

Treasury stock, at cost – 41.2 million and 40.8 million shares

(1,562,211)

(1,563,614)

Accumulated other comprehensive loss

(123,850)

(124,758)

Retained earnings

1,8416,462

1,711,949

Total stockholders' equity

753,969

651,455

Total liabilities and stockholders’ equity

1,391,411

1,468,914

NU SKIN ENTERPRISES, INC. Reconciliation of General and Administrative Expenses Excluding Certain Charges to GAAP General and Administrative Expenses (in thousands, except for per share amounts)

Three months ended March 31,

2025

2024

General and administrative expenses

113,204

124,566

Impact of other charges(1)

(7,966)

Adjusted general and administrative expenses

105,238

124,566

General and administrative expenses as a percentage of revenue

31.1%

29.9%

General and administrative expenses as a percentage of revenue, excluding certain charges

28.9%

29.9%

Revenue

364,490

417,306

(1) Other charges for the first quarter of 2025 consist of expenses incurred in connection with the Mavely sale, including $2.7 million of transaction bonuses for certain employees and $5.2 million of equity compensation as a result of the vesting of the Mavely profits interest units.

NU SKIN ENTERPRISES, INC. Reconciliation of Operating Margin Excluding Certain Charges to GAAP Operating Margin (in thousands, except for per share amounts)

Three months ended March 31,

2025

2024

Operating Income (loss)

(9,903)

8,822

Impact of other charges(1)

7,966

Impact of restructuring and impairment

25,114

7,134

Adjusted operating income

23,177

15,956

Operating margin

(2.7)%

2.1%

Operating margin, excluding certain charges

6.4%

3.8%

Revenue

364,490

417,306

NU SKIN ENTERPRISES, INC. Reconciliation of Effective Tax Rate Excluding Impact of Mavely Gain and Certain Charges to GAAP Effective Tax Rate (in thousands, except for per share amounts)

Three months ended March 31,

2025

2024

Provision for income taxes

27,086

1,634

Impact of other charges(1) on provision for income taxes

725

Impact of restructuring and impairment on provision for income taxes

5,433

2,356

Impact of gain on Mavely sale on provision for income taxes

(31,104)

Impact of unrealized investment loss on provision for income taxes

6,074

Provision for income taxes, excluding impact of Mavely gain and certain charges

8,214

3,990

Income before provision for income taxes

134,601

1,101

Impact of other charges(1)

7,966

Impact of restructuring and impairment expense:

25,114

7,134

Impact of gain on Mavely sale

(176,162)

Impact of unrealized investment loss

28,077

Income before provision for income taxes, excluding impact of certain charges

19,596

8,235

Effective tax rate

20.1%

148.4%

Effective tax rate, excluding impact of certain charges

41.9%

48.5%

NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Mavely Gain and Certain Charges to GAAP Earnings Per Share (in thousands, except for per share amounts)

Three months ended March 31,

2025

2024

Net income (loss)

107,515

(533)

Impact of other charges

Other charges(1)

7,966

Tax impact

(725)

Impact of restructuring and impairment expense:

Restructuring and impairment

25,114

7,134

Tax impact

(5,433)

(2,356)

Impact of gain on Mavely sale

Gain on Mavely sale

(176,162)

Tax impact

31,104

Impact of unrealized investment loss

Unrealized investment loss

28,077

Tax impact

(6,074)

Adjusted net income

11,382

4,245

Diluted earnings per share

2.14

(0.01)

Diluted earnings per share, excluding restructuring impact

0.23

0.09

Weighted-average common shares outstanding (000)

50,328

49,538

NU SKIN ENTERPRISES, INC. Reconciliation of Earnings Per Share Excluding Impact of Restructuring to GAAP Earnings Per Share

Year ended December 31, 2025

Low end

High end

Earnings Per Share

2.80

3.20

Impact of other charges

Other charges(1)

0.16

Tax impact

(0.01)

Impact of restructuring and impairment expense:

Restructuring and impairment

0.50

Tax impact

(0.11)

Impact of gain on Mavely sale

Gain on Mavely sale

(3.50)

Tax impact

0.62

Impact of unrealized investment loss

Unrealized investment loss

0.56

Tax impact

(0.12)

Adjusted EPS

0.90

1.30

NU SKIN ENTERPRISES, INC. Reconciliation of Revenue Growth Rates Excluding Mavely to GAAP Revenue Growth Rates (in thousands)

Three months ended June 30, 2025

Year ended December 31, 2025

Low end

High end

Low end

High end

2024 Revenue

439,081

1,732,084

Less: Mavely 2024 Revenue

12,007

69,620

Adjusted 2024 Revenue

427,074

1,662,464

Revenue Growth Rate

(19)%

(11)%

(15)%

(6)%

Revenue Growth Rate, excluding Mavely

(17)%

(9)%

(11)%

(3)%

2025 Forecasted Revenue

355,000

390,000

1,480,000

1,620,000

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