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Nu Skin's (NUS) Nu Vision 2025 Strategy Bodes Well, Costs Hurt
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Nu Skin Enterprises, Inc. (NUS - Free Report) has been focused on undertaking growth initiatives like product launches and enhancing sales leaders. The company’s Nu Vision 2025 strategy bodes well amid the ongoing macroeconomic challenges.
Incidentally, this beauty and wellness product company has been seeing macroeconomic challenges like pandemic-related disruptions, unfavorable currency rates and global inflation. Let’s delve deeper.
Factors Working Well
Nu Skin’s long-term strategies stand on three key pillars — Products, Programs and Platforms. The company has been successfully launching innovative beauty devices, which have now become an important part of its growth. In 2022, NUS introduced its first connected device, ageLOC LumiSpa iO, strengthening its position as the world’s leading beauty device system brand.
The company also rolled out its Vera and Stela apps across all markets. Management is on track to advance EmpowerMe’s personalized beauty and wellness strategy with the introduction of the body iO smart, connected device system and rolling out the TRMe weight management line. Apart from product launches, Nu Skin’s well-knit product strategies and customer retention programs have been driving growth in several market locations.
Nu Skin is on track with its Nu Vision 2025 strategy to become the world’s leading integrated beauty and wellness company, driven by a dynamic affiliate opportunity platform. The strategy is based on key strategic imperatives like the EmpowerMe personalized beauty and wellness strategy, with connected beauty devices, an affiliate-powered social commerce business model and the expansion of the digital platform. As part of its EmpowerMe strategy, NUS plans to launch its next smart connected device system in the third quarter of 2023.
Talking about advancing its digital-first ecosystem, the company’s Vera and Stela applications are doing well. Management continues to add languages and features to the apps. Additionally, Nu Skin highlighted that it would start deploying a new e-commerce platform along with its strategic partner, Infosys, in North America in the second quarter of 2023. The company expects this to be extended globally throughout 2024.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin’s margins have been contracting year over year for the past few quarters now. In the fourth quarter of 2022, the gross margin, excluding the restructuring impact, came in at 71.7%, down from the 75.2% reported in the year-ago quarter. The downside was due to unfavorable currency rates, global inflationary pressures and geographic footprint.
Management expects its global macro environment to remain challenging in the near term, as reflected in its 2023 view. For the first quarter and the full-year 2023, Nu Skin expects unfavorable foreign currency impacts of 5-6% and 1-2%, respectively, on revenues. In China, though curbs are being relaxed and things are opening up, management expects the first half to remain tough.
Nu Skin anticipates overall revenues in the band of $2.03-$2.18 billion for 2023, suggesting a 2-9% decline from the year-ago period’s reported figure. Management expects 2023 adjusted earnings in the range of $2.35-$2.75 per share. The current projection suggests a decline from the adjusted earnings of $2.90 reported last year.
However, Nu Skin’s abovementioned growth initiatives are likely to help it stay firm amid obstacles. The company has also been executing cost-control measures to boost its profit scope. It expects general and administrative expenses (in dollar terms) to decline year over year in 2023, driven by cost efficiencies.
Shares of this Zacks Rank #3 (Hold) company have rallied 12.1% in the past six months compared with the industry’s growth of 26.4%.
Lamb Weston, which operates as a frozen potato product company, currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 47.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS suggests an increase of 94.7% from the year-ago reported number.
General Mills, a branded consumer food company, currently carries a Zacks Rank #2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.1%, on average.
The Zacks Consensus Estimate for General Mills’ current fiscal-year sales and earnings suggests growth of 6.3% and 7.4%, respectively, from the corresponding year-ago reported figures.
Conagra Brands, operating as a consumer-packaged goods food company, currently carries a Zacks Rank #2. CAG has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current fiscal-year sales and earnings suggests an increase of 7% and 15.7%, respectively, from the year-ago reported number.
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Nu Skin's (NUS) Nu Vision 2025 Strategy Bodes Well, Costs Hurt
Nu Skin Enterprises, Inc. (NUS - Free Report) has been focused on undertaking growth initiatives like product launches and enhancing sales leaders. The company’s Nu Vision 2025 strategy bodes well amid the ongoing macroeconomic challenges.
Incidentally, this beauty and wellness product company has been seeing macroeconomic challenges like pandemic-related disruptions, unfavorable currency rates and global inflation. Let’s delve deeper.
Factors Working Well
Nu Skin’s long-term strategies stand on three key pillars — Products, Programs and Platforms. The company has been successfully launching innovative beauty devices, which have now become an important part of its growth. In 2022, NUS introduced its first connected device, ageLOC LumiSpa iO, strengthening its position as the world’s leading beauty device system brand.
The company also rolled out its Vera and Stela apps across all markets. Management is on track to advance EmpowerMe’s personalized beauty and wellness strategy with the introduction of the body iO smart, connected device system and rolling out the TRMe weight management line. Apart from product launches, Nu Skin’s well-knit product strategies and customer retention programs have been driving growth in several market locations.
Nu Skin is on track with its Nu Vision 2025 strategy to become the world’s leading integrated beauty and wellness company, driven by a dynamic affiliate opportunity platform. The strategy is based on key strategic imperatives like the EmpowerMe personalized beauty and wellness strategy, with connected beauty devices, an affiliate-powered social commerce business model and the expansion of the digital platform. As part of its EmpowerMe strategy, NUS plans to launch its next smart connected device system in the third quarter of 2023.
Talking about advancing its digital-first ecosystem, the company’s Vera and Stela applications are doing well. Management continues to add languages and features to the apps. Additionally, Nu Skin highlighted that it would start deploying a new e-commerce platform along with its strategic partner, Infosys, in North America in the second quarter of 2023. The company expects this to be extended globally throughout 2024.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin Enterprises, Inc. price-consensus-eps-surprise-chart | Nu Skin Enterprises, Inc. Quote
Costs & Other Headwinds Hurt
Nu Skin’s margins have been contracting year over year for the past few quarters now. In the fourth quarter of 2022, the gross margin, excluding the restructuring impact, came in at 71.7%, down from the 75.2% reported in the year-ago quarter. The downside was due to unfavorable currency rates, global inflationary pressures and geographic footprint.
Management expects its global macro environment to remain challenging in the near term, as reflected in its 2023 view. For the first quarter and the full-year 2023, Nu Skin expects unfavorable foreign currency impacts of 5-6% and 1-2%, respectively, on revenues. In China, though curbs are being relaxed and things are opening up, management expects the first half to remain tough.
Nu Skin anticipates overall revenues in the band of $2.03-$2.18 billion for 2023, suggesting a 2-9% decline from the year-ago period’s reported figure. Management expects 2023 adjusted earnings in the range of $2.35-$2.75 per share. The current projection suggests a decline from the adjusted earnings of $2.90 reported last year.
However, Nu Skin’s abovementioned growth initiatives are likely to help it stay firm amid obstacles. The company has also been executing cost-control measures to boost its profit scope. It expects general and administrative expenses (in dollar terms) to decline year over year in 2023, driven by cost efficiencies.
Shares of this Zacks Rank #3 (Hold) company have rallied 12.1% in the past six months compared with the industry’s growth of 26.4%.
Solid Consumer Staple Picks
Some better-ranked consumer staple stocks are Lamb Weston (LW - Free Report) , General Mills (GIS - Free Report) and Conagra Brands (CAG - Free Report) .
Lamb Weston, which operates as a frozen potato product company, currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 47.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year EPS suggests an increase of 94.7% from the year-ago reported number.
General Mills, a branded consumer food company, currently carries a Zacks Rank #2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.1%, on average.
The Zacks Consensus Estimate for General Mills’ current fiscal-year sales and earnings suggests growth of 6.3% and 7.4%, respectively, from the corresponding year-ago reported figures.
Conagra Brands, operating as a consumer-packaged goods food company, currently carries a Zacks Rank #2. CAG has a trailing four-quarter earnings surprise of 13.2%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current fiscal-year sales and earnings suggests an increase of 7% and 15.7%, respectively, from the year-ago reported number.