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Nu Skin Enterprises, Inc.

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Nu Skin’s shares have underperformed the industry in the past three months, thanks to dismal gross margins and adverse impacts from currency fluctuations. In fact, the company’s gross margin has been slipping since the past several quarters. This emerges as a considerable threat to profitability. Speaking of profitability, Nu Skin’s bottom-line in the third-quarter was hurt by foreign currency translation losses of almost 7 cents per share. Sadly, management expects currency translations to dent earnings in 2018. Apart from these, stiff competition from the existence of strong peers and abundant product alternatives in the market also pose as threats to the company’s performance. On the bright side, Nu Skin has been steadily gaining from expanding sales leaders and customers globally. Notably, these upsides aided the third-quarter 2018 results, marking its fourth consecutive period of year-on-year top- and bottom-line increases.

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