Nu Skin Enterprises Inc (NUS) Reports Q3 2023 Financial Results
Q3 2023 revenue reported at $498.8 million, a 7% decrease compared to the same period last year.
Earnings per share (EPS) for the quarter stood at $(0.74) or $0.56 excluding an inventory write-off.
Customer count decreased by 21% to 978,907.
Dividend payments and stock repurchases amounted to $19.5 million and $13.0 million respectively.
On November 1, 2023, Nu Skin Enterprises Inc (NYSE:NUS) released its third quarter 2023 financial results. The company reported a revenue of $498.8 million, marking a 7% decrease compared to the same period last year. The earnings per share (EPS) for the quarter stood at $(0.74) or $0.56 excluding an inventory write-off. The customer count decreased by 21% to 978,907.
Financial Performance
The company's gross margin was 58.6% or 71.8% excluding an inventory write-off, compared to 67.7% or 72.7% excluding restructuring and impairment charges from the previous year. Selling expenses were 37.6% compared to 40.3% in the prior-year quarter. The operating margin was reported at -(5.3)% or 7.9% excluding an inventory write-off, compared to -(3.8)% or 6.8% excluding restructuring and impairment charges from the previous year.
Stockholder Value
Nu Skin Enterprises Inc (NYSE:NUS) returned value to its shareholders through dividend payments and stock repurchases amounting to $19.5 million and $13.0 million respectively. The company still has $162.4 million remaining in authorization for stock repurchases.
Outlook for Q4 and Full-year 2023
For the fourth quarter of 2023, the company expects revenue to be between $440 to $480 million, marking a 16% to 8% decrease. The EPS is projected to be between $(0.14) to $0.01 or $0.15 to $0.30 non-GAAP. For the full year 2023, the company anticipates revenue to be between $1.92 to $1.96 billion, a 14% to 12% decrease. The EPS is expected to be between $(0.10) to $0.05 or $1.62 to $1.77 non-GAAP.
Commentary
Nu Skin president and CEO, Ryan Napierski, commented on the results,
Our third quarter results were softer than expected as persistent macro-economic challenges in several of our key markets negatively affected consumer spending and customer acquisition, particularly in our Mainland China and Americas segments, along with a continued strong U.S. dollar."
He also mentioned that despite the disappointing results, they are encouraged by the stabilization and modest growth in three of their Nu Skin reporting segments, highlighted by double-digit gains in Europe/Africa.
James D. Thomas, chief financial officer, added,
Given the state of our business and in line with our global strategic review, we made the decision to accelerate our product portfolio optimization resulting in a $65.7 million Q3 inventory write-off and are adjusting our annual guidance."
Explore the complete 8-K earnings release (here) from Nu Skin Enterprises Inc for further details.
This article first appeared on GuruFocus.
