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Nu Skin (NUS) Looks Radiant on Innovation & Digital Strength
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Nu Skin Enterprises, Inc. (NUS - Free Report) appears to be on a firm footing. The company has been benefiting from its focus on innovation and efforts to strengthen sales leaders and expand the customer base. These upsides fueled the cosmetics company’s third-quarter 2020 results, wherein earnings and sales improved year over year and the former beat the Zacks Consensus Estimate.
Results were mainly driven by robust double-digit growth in customers and sales leaders, along with revenue gains across all segments, except one. The growth was primarily attributed to the strong execution of the company’s long-term strategy. Management remains optimistic about momentum in the core Nu Skin business, driven by ageLOC Boost and Nutricentials product introductions in the fourth quarter. Moreover, consistent demand momentum is expected to drive growth in the manufacturing segment.
In fact, a strong third-quarter performance, momentum in the aforementioned businesses and increased visibility into the future encouraged management to raise its guidance for 2020. Moreover, Nu Skin expects the momentum to continue in 2021, driven by innovative product launches. Management now expects 2020 revenues of $2.55-$2.58 billion compared with $2.37-$2.45 billion predicted earlier. In 2019, Nu Skin’s revenues amounted to $2.42 billion. Further, 2020 earnings are projected to be $3.35-$3.45 per share, indicating an increase from $3.10 reported in 2019. Earlier, Nu Skin envisioned earnings of $2.85-$3.10 per share.
Factors Working Well for Nu Skin
Nu Skin remains focused on empowering sales leaders and customer base through product launches and engaging technology platforms among other initiatives. Moreover, the company has been conducting a number of promotional seminars online. Additionally, Nu Skin rolled out its Velocity sales compensation plan as well as the enJoy rewards program over the past two years. These programs are doing well and continuing to aid growth in sales leaders and customers. In the third quarter of 2020, sales leaders were up 12% year over year to 68,516, while Nu Skin’s customer base increased 28% to 1,539,511.
Growth was largely driven by the company’s enhanced socially-enabled business model and ongoing investments to become a digitally-focused company. Well, a shift to work-from-home and at-home trends has led to increased online shopping, which presents a unique opportunity for the company’s business. Nu Skin is making significant investments in the digital platform to build a socially-enabled business. In this regard, the company is in the process of rolling out its personal recommendation app, Vera, as well as its personal offer app, My Site. These are likely to help the company’s affiliates grow their businesses socially. Per the third-quarter earnings call, digital transactions contributed about 90% to Nu Skin’s revenues.
Certainly, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. Notably, the launch of the company’s revolutionary ageLOC LumiSpa, along with the re-launch of the Galvanic Spa device has been a success. Further, management remains encouraged about the company’s latest beauty device system — ageLOC Boost — which recorded sales of $30 million in the third quarter. This can be attributable to some early top leader previews. Apart from this, the company expects $70-$80 million of sales in the fourth quarter from the new product previews of Nutricentials Bioadaptives, which is aimed at the millennial and Gen Z customer segments. The full launch of Nutricentials Bioadaptives Skin Care products is anticipated in 2021.
We believe that the abovementioned upsides are likely to help Nu Skin battle challenges like escalated costs and volatile currency movements and keep aiding its growth story.
Markedly, shares of this Zacks Rank #2 (Buy) company have surged 46.3% in the past six months compared with the industry’s growth of 31.2%.
Inter Parfums (IPAR - Free Report) has a Zacks Rank #2 and a trailing four-quarter earnings surprise of 18.7%, on average.
Hain Celestial (HAIN - Free Report) has a Zacks Rank #2 and a trailing four-quarter earnings surprise of 24.6%, on average.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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Nu Skin (NUS) Looks Radiant on Innovation & Digital Strength
Nu Skin Enterprises, Inc. (NUS - Free Report) appears to be on a firm footing. The company has been benefiting from its focus on innovation and efforts to strengthen sales leaders and expand the customer base. These upsides fueled the cosmetics company’s third-quarter 2020 results, wherein earnings and sales improved year over year and the former beat the Zacks Consensus Estimate.
Results were mainly driven by robust double-digit growth in customers and sales leaders, along with revenue gains across all segments, except one. The growth was primarily attributed to the strong execution of the company’s long-term strategy. Management remains optimistic about momentum in the core Nu Skin business, driven by ageLOC Boost and Nutricentials product introductions in the fourth quarter. Moreover, consistent demand momentum is expected to drive growth in the manufacturing segment.
In fact, a strong third-quarter performance, momentum in the aforementioned businesses and increased visibility into the future encouraged management to raise its guidance for 2020. Moreover, Nu Skin expects the momentum to continue in 2021, driven by innovative product launches. Management now expects 2020 revenues of $2.55-$2.58 billion compared with $2.37-$2.45 billion predicted earlier. In 2019, Nu Skin’s revenues amounted to $2.42 billion. Further, 2020 earnings are projected to be $3.35-$3.45 per share, indicating an increase from $3.10 reported in 2019. Earlier, Nu Skin envisioned earnings of $2.85-$3.10 per share.
Factors Working Well for Nu Skin
Nu Skin remains focused on empowering sales leaders and customer base through product launches and engaging technology platforms among other initiatives. Moreover, the company has been conducting a number of promotional seminars online. Additionally, Nu Skin rolled out its Velocity sales compensation plan as well as the enJoy rewards program over the past two years. These programs are doing well and continuing to aid growth in sales leaders and customers. In the third quarter of 2020, sales leaders were up 12% year over year to 68,516, while Nu Skin’s customer base increased 28% to 1,539,511.
Growth was largely driven by the company’s enhanced socially-enabled business model and ongoing investments to become a digitally-focused company. Well, a shift to work-from-home and at-home trends has led to increased online shopping, which presents a unique opportunity for the company’s business. Nu Skin is making significant investments in the digital platform to build a socially-enabled business. In this regard, the company is in the process of rolling out its personal recommendation app, Vera, as well as its personal offer app, My Site. These are likely to help the company’s affiliates grow their businesses socially. Per the third-quarter earnings call, digital transactions contributed about 90% to Nu Skin’s revenues.
Certainly, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. Notably, the launch of the company’s revolutionary ageLOC LumiSpa, along with the re-launch of the Galvanic Spa device has been a success. Further, management remains encouraged about the company’s latest beauty device system — ageLOC Boost — which recorded sales of $30 million in the third quarter. This can be attributable to some early top leader previews. Apart from this, the company expects $70-$80 million of sales in the fourth quarter from the new product previews of Nutricentials Bioadaptives, which is aimed at the millennial and Gen Z customer segments. The full launch of Nutricentials Bioadaptives Skin Care products is anticipated in 2021.
We believe that the abovementioned upsides are likely to help Nu Skin battle challenges like escalated costs and volatile currency movements and keep aiding its growth story.
Markedly, shares of this Zacks Rank #2 (Buy) company have surged 46.3% in the past six months compared with the industry’s growth of 31.2%.
Check These Consumer Staple Stocks Now
United Natural (UNFI - Free Report) , which currently carries a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 4.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inter Parfums (IPAR - Free Report) has a Zacks Rank #2 and a trailing four-quarter earnings surprise of 18.7%, on average.
Hain Celestial (HAIN - Free Report) has a Zacks Rank #2 and a trailing four-quarter earnings surprise of 24.6%, on average.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>