Nu Skin Enterprises (NUS - Free Report) boasts an expanding base of customers and sales leaders. These, combined with strategies to widen market reach, have been aiding this renowned cosmetics company to sustain its momentum.
Well, these upsides have raised investors’ optimism in the stock. Evidently, this Zacks Rank #1 (Strong Buy) stock has gained 14.2% in the past six months, against the industry’s decline of 3.3%.
Benefits From Growing Sales Leaders & Customer Base
A robust network of sales leaders and customers has been a key element in Nu Skin’s success. Notably, the company’s top line has been consistently benefitting from growth in sales leaders. In fact, during the second quarter of 2018, sales leaders improved approximately 21%. This was preceded by a rise of 16% and 33% during the first quarter of 2018 and the fourth quarter of 2017, respectively. The company plans to further empower sales leaders through improved training and technological enhancements.
In December 2017, the company successfully rolled out sales compensation program, Velocity, in the Pacific markets. Further, in the second quarter, this program was introduced in Taiwan and North America. In July, the same was launched in the markets of Japan and Southeast Asia. Management expects that Velocity will be a significant driver in expanding the company’s business in the future.
Moving on, Nu Skin also takes much pride in an expanding customer base. Incidentally, the company’s customers grew approximately 8% during the second quarter. This was preceded by a rise of 7% in the first quarter of 2018 and respective 8%, 7%, 5% and 2% increases in the fourth, the third, the second and the first quarters of 2017. The company relies on social media as well as well-knit product and marketing programs to widen customer reach.
Strategies to Stay on Growth Track
Nu Skin frequently engages in innovation to ensure parity of offerings with the evolving beauty and wellness space. In this respect, the company relies on advanced technologies and well-strategized programs to come up with unique product concepts. Notably, the launch of the company’s revolutionary ageLOC LumiSpa has been a success lately.
All said, we expect Nu Skin to maintain its sturdy performance, evident from management’s robust projections for 2018. Clearly, this Utah-based company is set to embellish investors’ portfolio.
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