Nu Skin Enterprises, Inc. (NUS - Free Report) raised its sales guidance for the second quarter of fiscal 2020. The company now expects revenues in the range of $603-$608 million in the quarter. Management had earlier projected sales in the band of $520-$550 million in the second quarter. We note that the Zacks Consensus Estimate for second-quarter sales are currently pegged at $543.5 million.
The uptick can be attributed to higher consumer growth globally, primarily driven by strength in Europe and the Americas business. Moreover, the company’s investments in enhancing its technological and digital abilities contributed to second-quarter growth. Notably, Nu Skin’s e-commerce business represented more than 80% of volumes in the quarter. Following this announcement, the company’s shares were up 13% in the aftermarket trading session on Jul 1. Moreover, shares of this Zacks Rank #2 (Buy) company have surged 76% the past three months compared with the industry’s growth of 26.7%.
Growth Efforts on Track
Nu Skin, which sells and distributes products through a network of sales leaders and customers, is focused on empowering them through engaging technology platforms among other initiatives. Recently, the company rolled out an online leadership, training and education programs in Mainland China for its sales leaders. Nu Skin has been conducting a number of promotional seminars online amid the coronavirus pandemic. The company also put in place new leadership incentives system to enhance productivity of sales leaders.
Apart from this, management is committed toward enhancing customer experience across various digital platforms. In this regard, the company is on track to launch VERA, a digital tool to provide personalized recommendation for its products to the customers.
With the help of advanced technology and well-strategized product programs Nu Skin tries to capture greater market share and maintain growth momentum. In fact, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. In connection with this, the launch of the company’s revolutionary ageLOC LumiSpa along with the re-launch of Galvanic Spa device is a success. By the fourth quarter, management plans to launch a new at-home beauty device, ageLOC which aims to provide customers with an on-the-go treatment for youthful skin. Also, management expects to launch a new bioadaptive skincare line under the Nutricentials brand.
Some Solid Staple Picks
Helen of Troy Limited (HELE - Free Report) sports a Zacks Rank #1 (Strong Buy) and has a long-term earnings growth rate of 8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
McCormick Company (MKC - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 5.8%.
Kimberly-Clark (KMB - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 5.1%.
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