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Oct 6 (Reuters) - Nu Skin Enterprises Inc, a direct seller of skin care and nutritional products, cut its revenue estimate for the third quarter, blaming a strong dollar and weak sales of its cosmetic oils in China.
The company’s shares fell as much as 18.2 percent to $38.10 in extended trading on Tuesday.
Nu Skin estimated revenue of $570 million-$573 million for the quarter ended Sept. 30, much below the average analyst estimate of $621.5 million.
The company had previously forecast revenue of $600 million-$620 million.
Nu Skin said the stronger dollar lowered third-quarter revenue by more than $60 million from a year earlier.
The company said cosmetic oil sales in China were lower than expected in August and September, and added that the trend likely reflected economic conditions in the country.
Fears of China’s economy heading for its slowest growth in 25 years are causing a headache for companies and is resulting in a trend of slowing consumer sales.
Nu Skin gets about 85 percent of its revenue from international markets.
The company has also struggled with a host of regulatory problems in China, including a $540,000 fine last year for illegal sales and for misleading consumers about the effectiveness of its products.
The Greater China region, which includes Taiwan and Hong Kong, is Nu Skin’s biggest market and accounted for 35 percent of total sales in the second quarter. (Reporting by Ramkumar Iyer in Bengaluru; Editing by Maju Samuel)