Nu Vision 2025 Strategy Aids Nu Skin (NUS), High Costs Hurt
Nu Skin Enterprises, Inc. NUS is on track with its Nu Vision 2025 strategy, yielding growth. With the help of advanced technology and well-strategized product programs, the company tries to capture more significant market share and maintain growth momentum. However, the company is not immune to an inflationary environment.
Let’s delve deeper.
Nu Vision 2025 Strategy Holds Promise
The Zacks Rank #3 (Hold) company is on track with its Nu Vision 2025 strategy to become the world’s leading integrated beauty and wellness company driven by a dynamic affiliate opportunity platform. The system is based on key imperatives like EmpowerMe personalized beauty and wellness strategy with connected beauty devices, affiliate-powered social commerce business model and the expansion of the digital platform.
Nu Skin is progressing with the core elements, including the introduction of EmpowerMe, personalized beauty and wellness strategy, expansion of its affiliate-powered social commerce business model and enhancement of its digital platform. NUS is keen on accelerating its sales channel's growth by introducing a new channel growth program — EmpowerStart, across most markets.
Taking about advancing its digital-first ecosystem, the company’s Vera and Stela applications are doing well. Also, NUS began the implementation of Equinox (in June 2023) — its new e-commerce global platform in North America. Management expects the new platform to create a more dynamic customer experience while improving operational efficiencies eventually.
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What Else is Working Well for Nu Skin?
Nu Skin’s long-term strategies stand on three key pillars — Products, Programs and Platforms. The company has been successfully launching innovative beauty devices, which have become an essential part of its growth. The company is on track to launch its first holistic wellness, beauty and beauty device ageLOC WellSpa iO.
Besides product launches, Nu Skin’s well-knit product strategies and customer retention programs have driven growth in several market locations. The company has also been executing cost-control measures to boost its profit scope.
Hurdles on the Way
Nu Skin has been witnessing persistent macroeconomic hurdles. Macroeconomic factors and related price increases have affected specific key markets, leading to a slowdown in consumer spending and customer acquisition. These factors hurt the company’s second-quarter 2023 results, with the top and the bottom line declining year over year and missing the Zacks Consensus Estimate.
Nu Skin is also battling unfavorable currency headwinds. Any adverse currency fluctuation will likely dent the company’s operating performance. In second-quarter 2023, revenues included a negative impact of 3% from foreign currency fluctuations.
Whether the upsides can help Nu Skin counter the downsides above is yet to be seen.
The company’s shares have slumped 35.2% in the past three months compared with the industry’s 22.3% decline.
Top 3 Picks
Inter Parfums IPAR, which manufactures, markets and distributes a range of fragrances and fragrance-related products, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and earnings indicates 19.7% and 14.9% growth from their respective year-ago reported figures. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
e.l.f. Beauty ELF, a cosmetic and skincare product company, currently carries a Zacks Rank #2. ELF has a trailing four-quarter earnings surprise of 108.3%, on average.
The Zacks Consensus Estimate for e.l.f. Beauty’s current financial-year sales and earnings indicates 64.7% and almost 47% growth from their respective year-ago reported figures.
Flowers Foods FLO, a packaged bakery food product company, currently has a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 7.6%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current fiscal-year sales indicates growth of 6.7% from the year-ago reported number.
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