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Nu Skin (NUS) Q1 Earnings & Revenues Top Estimates, Dip Y/Y
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Nu Skin Enterprises, Inc. (NUS - Free Report) posted first-quarter 2023 results, wherein the top and bottom lines declined year over year but came ahead of the respective Zacks Consensus Estimate. The company faced difficult year-over-year comparisons and continued macroeconomic hurdles.
Results in the Americas and Southeast Asia were hurt by macroeconomic factors like inflation and recession-related concerns, whereas better-than-expected outcomes in South Korea and Mainland China were upsides. That said, the company has been on track with its Nu Vision 2025 strategy.
During the quarter, Nu Skin introduced ageLOC TRMe, which is its personalized weight management system in South Korea. Apart from this, its ageLOC LumiSpa iO device has been performing well. Enhancements to its Vera and Stela apps have also been working well.
Management remains encouraged about the second half of 2023, wherein it plans to launch ageLOC WellSpa iO – its next connected device system. It also plans to continue developing its social commerce business model to enhance connections with consumers and affiliates.
Q1 Highlights
Nu Skin’s adjusted earnings of 37 cents a share declined from the 76 cents reported in the year-ago quarter. However, the metric surpassed the Zacks Consensus Estimate of 33 cents.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Revenues of $481.5 million tumbled roughly 20% year over year. Revenues included a negative impact of 4% from foreign currency fluctuations. Nonetheless, the top line beat the Zacks Consensus Estimate of $477 million.
Sales leaders were down 17% year over year to 43,755. Nu Skin’s customer base dropped 18% to 1,083,536. The company’s paid affiliates were down 12% to 221,354.
The gross profit of $347.9 million declined from the $443.4 million reported in the year-ago quarter. The gross margin came in at 72.3%, down from the 73.3% reported in the year-ago quarter. The downside was due to global inflationary pressures. Nu Skin business’ gross margin came in at 76.4%, down 10 basis points year over year.
Selling expenses declined to $188.1 million from the $242.7 million reported in the prior-year quarter. As a percentage of revenues, the metric was 39.1%, down from the 40.1% reported in the year-ago quarter. Nu Skin business’ selling expenses were 41.7% compared with 43% in the prior-year quarter.
General and administrative expenses of $133.9 million declined from $148.6 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses came to 27.8%, up from 24.6% in the year-ago period.
The adjusted operating income of $28.9 million declined from $52.1 million in the year-ago quarter. The adjusted operating margin contracted to 5.4% from 8.6% reported in the year-ago quarter.
Regional Results
Region-wise, revenues (at cc) declined 15%, 41%, 21%, 3%, 6% and 5% in the Americas, Mainland China, Southeast Asia/Pacific, Japan, the EMEA and Hong Kong/Taiwan, respectively. In South Korea, revenues rose 3% at cc. Total Nu Skin revenues fell 17% at cc from the prior-year quarter.
Other Financial Details
Nu Skin ended the quarter with cash and cash equivalents of $229.9 million, long-term debt of $372.6 million and total stockholders' equity of around $893 million.
In the reported quarter, the company paid out dividends of $19.4 million while making no repurchases. NUS currently has $175.4 million remaining under the current share repurchase authorization. In a separate press release, management announced a dividend of 39 cents per share. The dividend is payable on Jun 7, 2023, to shareholders on record as of May 26.
Guidance
Management expects to witness gradual sequential improvements in 2023, even amid a tough global macro landscape. The company remains focused on managing its cost structure and making investments in core initiatives supporting its Nu Vision 2025 strategy. This Zacks Rank #2 (Buy) company raised its adjusted earnings per share (EPS) guidance for 2023 while keeping the revenue projection unchanged.
Nu Skin anticipates revenues in the band of $2.03-$2.18 billion for 2023, suggesting a 9-2% decline from the year-ago period’s reported figure. The company envisions an unfavorable foreign currency impact of 1-2% on 2023 revenues.
Management now envisions the adjusted EPS in the band of $2.41-$2.81 compared with the $2.35-$2.75 expected earlier. The projection suggests a decline from adjusted earnings of $2.90 reported last year. The reported EPS is still anticipated in the range of $2.27-$2.67 compared with the year-ago period’s figure of $2.07.
For the second quarter, Nu Skin expects revenues between $485 million and $525 million, including an unfavorable foreign currency impact of 1-2%. The current revenue projection suggests a 14-6% decline from the year-ago quarter’s reported level. The company expects earnings in the band of 45-55 cents a share for the second quarter.
Shares of the company have risen 11.9% in the past six months compared with the industry’s growth of 22.2%.
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 116.8% from the year-ago reported number.
General Mills, a food and beverage product company, currently has a Zacks Rank #2. 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, which operates 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 7.1% and 16.5%, respectively, from the year-ago reported number.
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Nu Skin (NUS) Q1 Earnings & Revenues Top Estimates, Dip Y/Y
Nu Skin Enterprises, Inc. (NUS - Free Report) posted first-quarter 2023 results, wherein the top and bottom lines declined year over year but came ahead of the respective Zacks Consensus Estimate. The company faced difficult year-over-year comparisons and continued macroeconomic hurdles.
Results in the Americas and Southeast Asia were hurt by macroeconomic factors like inflation and recession-related concerns, whereas better-than-expected outcomes in South Korea and Mainland China were upsides. That said, the company has been on track with its Nu Vision 2025 strategy.
During the quarter, Nu Skin introduced ageLOC TRMe, which is its personalized weight management system in South Korea. Apart from this, its ageLOC LumiSpa iO device has been performing well. Enhancements to its Vera and Stela apps have also been working well.
Management remains encouraged about the second half of 2023, wherein it plans to launch ageLOC WellSpa iO – its next connected device system. It also plans to continue developing its social commerce business model to enhance connections with consumers and affiliates.
Q1 Highlights
Nu Skin’s adjusted earnings of 37 cents a share declined from the 76 cents reported in the year-ago quarter. However, the metric surpassed the Zacks Consensus Estimate of 33 cents.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin Enterprises, Inc. price-consensus-eps-surprise-chart | Nu Skin Enterprises, Inc. Quote
Revenues of $481.5 million tumbled roughly 20% year over year. Revenues included a negative impact of 4% from foreign currency fluctuations. Nonetheless, the top line beat the Zacks Consensus Estimate of $477 million.
Sales leaders were down 17% year over year to 43,755. Nu Skin’s customer base dropped 18% to 1,083,536. The company’s paid affiliates were down 12% to 221,354.
The gross profit of $347.9 million declined from the $443.4 million reported in the year-ago quarter. The gross margin came in at 72.3%, down from the 73.3% reported in the year-ago quarter. The downside was due to global inflationary pressures. Nu Skin business’ gross margin came in at 76.4%, down 10 basis points year over year.
Selling expenses declined to $188.1 million from the $242.7 million reported in the prior-year quarter. As a percentage of revenues, the metric was 39.1%, down from the 40.1% reported in the year-ago quarter. Nu Skin business’ selling expenses were 41.7% compared with 43% in the prior-year quarter.
General and administrative expenses of $133.9 million declined from $148.6 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses came to 27.8%, up from 24.6% in the year-ago period.
The adjusted operating income of $28.9 million declined from $52.1 million in the year-ago quarter. The adjusted operating margin contracted to 5.4% from 8.6% reported in the year-ago quarter.
Regional Results
Region-wise, revenues (at cc) declined 15%, 41%, 21%, 3%, 6% and 5% in the Americas, Mainland China, Southeast Asia/Pacific, Japan, the EMEA and Hong Kong/Taiwan, respectively. In South Korea, revenues rose 3% at cc. Total Nu Skin revenues fell 17% at cc from the prior-year quarter.
Other Financial Details
Nu Skin ended the quarter with cash and cash equivalents of $229.9 million, long-term debt of $372.6 million and total stockholders' equity of around $893 million.
In the reported quarter, the company paid out dividends of $19.4 million while making no repurchases. NUS currently has $175.4 million remaining under the current share repurchase authorization. In a separate press release, management announced a dividend of 39 cents per share. The dividend is payable on Jun 7, 2023, to shareholders on record as of May 26.
Guidance
Management expects to witness gradual sequential improvements in 2023, even amid a tough global macro landscape. The company remains focused on managing its cost structure and making investments in core initiatives supporting its Nu Vision 2025 strategy. This Zacks Rank #2 (Buy) company raised its adjusted earnings per share (EPS) guidance for 2023 while keeping the revenue projection unchanged.
Nu Skin anticipates revenues in the band of $2.03-$2.18 billion for 2023, suggesting a 9-2% decline from the year-ago period’s reported figure. The company envisions an unfavorable foreign currency impact of 1-2% on 2023 revenues.
Management now envisions the adjusted EPS in the band of $2.41-$2.81 compared with the $2.35-$2.75 expected earlier. The projection suggests a decline from adjusted earnings of $2.90 reported last year. The reported EPS is still anticipated in the range of $2.27-$2.67 compared with the year-ago period’s figure of $2.07.
For the second quarter, Nu Skin expects revenues between $485 million and $525 million, including an unfavorable foreign currency impact of 1-2%. The current revenue projection suggests a 14-6% decline from the year-ago quarter’s reported level. The company expects earnings in the band of 45-55 cents a share for the second quarter.
Shares of the company have risen 11.9% in the past six months compared with the industry’s growth of 22.2%.
Other Solid Picks
Some other top-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 116.8% from the year-ago reported number.
General Mills, a food and beverage product company, currently has a Zacks Rank #2. 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, which operates 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 7.1% and 16.5%, respectively, from the year-ago reported number.