Nu Skin Enterprises Announces Record Revenue

Tue Oct 20, 2009 7:30am EDT
 
[-] Text [+]
PROVO, Utah, Oct. 20 /PRNewswire-FirstCall/ -- Today Nu Skin Enterprises
pre-announced record quarterly revenue and earnings in advance of its 25th
Anniversary Global Convention. Revenue for the third quarter grew to $334.2
million, an 8 percent improvement over the prior-year period. Earnings per
share are expected to be $0.39 to $0.40, compared to $0.26 in the prior-year
quarter. Earnings per share include $0.01 in planned restructuring charges
related to Japan. Revenue benefited 1 percent for the quarter from foreign
currency fluctuations. Strong revenue results around the globe coupled with
improving operating margins continue to drive record results.


"In a year full of milestones, it's fitting that the third quarter was our
largest revenue quarter in company history," said Truman Hunt, president and
chief executive officer. "We continue to generate impressive results on both
the top and bottom lines. Our local currency revenue growth accelerated to 7
percent, boosted by continued sales trend improvements in Japan and
double-digit growth in South East Asia, South Korea, Mainland China, Europe
and Latin America. Our North America business also performed well, reporting 7
percent growth. The approximately 50 percent improvement on the bottom line is
a reflection of the terrific work our management teams have done around the
world in streamlining the business over the past three years.


"All indications are that the upcoming launch of our ageLOC anti-aging
skin-care product line will be our most significant new product launch ever,"
Hunt continued. "We are seeing tremendous energy as we build towards our 25th
Anniversary Global Convention, which will take place October 22 to 24 in Los
Angeles, California.


"Our strong performance in the third quarter leads us to raise our guidance
for the year. We anticipate revenue of $1.29 billion to $1.30 billion, with
earnings in the range of $1.25 to $1.27, including estimated restructuring
charges of approximately $0.13," concluded Hunt.


The company will provide complete quarterly details before the opening of the
financial markets on Thursday, Oct. 29. Management will host a conference call
with the investment community that same day at 1 p.m. EDT. 


The Company
For 25 years, Nu Skin Enterprises, Inc. has been demonstrating its tradition
of innovation through its comprehensive anti-aging product portfolio,
independent business opportunity and corporate social responsibility
initiatives. Nu Skin's scientific leadership in both skin care and nutrition
has established Nu Skin as a premier anti-aging company, evidenced in its
unique ageLOC(TM) approach and flagship products including the Galvanic Spa®
System II, Tru Face® Essence Ultra, LifePak® nano and the g3 nutrition
beverage. A global direct selling company, Nu Skin operates in 48 markets
worldwide and has more than 750,000 independent sales representatives. Nu Skin
Enterprises is traded on the New York Stock Exchange under the symbol "NUS."
More information is available at http://www.nuskinenterprises.com. 


Please note: This press release, contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934 that
represent the company's current expectations and beliefs, including, among
other things: (i) anticipated financial results for the third quarter; (ii)
management's positive outlook for the company; (iii) management's expectations
regarding the launch of the ageLOC(TM) anti-aging skin-care product line; and
(iv) management's projections regarding revenue, earnings per share and
restructuring charges for the year 2009. 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: (a) challenging economic conditions globally; (b) any prospective
or retrospective increases in duties on our products imported into ourmarkets
outside of the United States and any adverse results of tax audits or
unfavorable changes to tax laws in our various markets; (c) the recent
fluctuations of numerous foreign currencies and the associated currency
translation impact on our business if these currencies continue to fluctuate;
(d) uncertainty regarding the impact on our business of increased regulatory
scrutiny of the direct selling industry in Japan and our efforts to increase
distributor compliance efforts in this market; (e) an increase in complaints
to consumer protection agencies in Japan regarding the activities of some
distributors and the associated risks to the company's business if such
increase results in further regulatory scrutiny; (f) regulatory risks
associated with the company's tools and products, which could inhibit the
company's ability to market a tool or product in a market if it is determined
to be a medical device in any market, if distributors make unauthorized claims
that would cause such products to be classified as drugs, or if the company is
unable to obtain necessary product registrations in a timely manner; (g) risks
related to the recent swine flu outbreak, which could negatively impact our
business to the extent that it inhibits travel, causes people to avoid
interaction with other people, or restricts our ability to produce or
distribute any of our porcine-sourced gelatin encapsulated products; (h)
continued regulatory scrutiny and investigations in Mainland China, which have
from time to time in the past, and could in the future, negatively impact the
company's business, including the interruption of sales activities in stores,
loss of licenses, and the imposition of fines; (i) any failure of current or
planned initiatives or products to generate interest among distributors and
customers and generate sponsoring and selling activities on a sustained basis;
(j) any unanticipated negative response from distributors regarding
distributor compensation plan enhancements planned for implementation in most
of our Asian markets in 2009; (k) any failure of the implementation of
business transformation initiatives to reduce overhead and drive growth, and
any negative impact of such initiatives on the company's ability to
effectively manage its operations; (l) adverse publicity related to the
company's business, products, industry or any legal actions or complaints by
distributors or others similar to claims made against some of the company's
competitors; and (m) continued competitive pressures in the company's 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, including the company's Annual Report on Form 10-K filed
on February 27, 2009 and Quarterly Reports on Form 10-Q filed on May 8, 2009
and August 7, 2009. The forward-looking statements set forth the company's
beliefs as of the date of this release, 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.












SOURCE  Nu Skin Enterprises, Inc.

investors, Scott Pond, +1-801-471-9998, spond@nuskin.com, or media, Kara
Schneck, +1-801-345-2116, kschneck@nuskin.com, both of Nu Skin Enterprises,
Inc.

 

Featured Broker sponsored link

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video