Nu Skin Enterprises, Inc. (NUS) Bundle
A Brief History of Nu Skin Enterprises, Inc.
Company Overview
Nu Skin Enterprises, Inc. is a global leader in the direct selling of personal care products and dietary supplements. Founded in 1984, the company has expanded its reach into over 50 markets worldwide. As of 2024, Nu Skin operates through various segments including Americas, Mainland China, Southeast Asia/Pacific, Japan, South Korea, Europe & Africa, and Hong Kong/Taiwan.
Financial Performance
For the third quarter of 2024, Nu Skin reported revenue of $430.1 million, a decrease of 14% from $498.8 million in the prior-year period. For the nine-month period ended September 30, 2024, revenue was $1.3 billion, down 13% from $1.5 billion in 2023.
| Period | Revenue (in millions) | Net Income (Loss) | Earnings Per Share |
|---|---|---|---|
| Q3 2024 | $430.1 | $8.3 million | $0.17 |
| Q3 2023 | $498.8 | $(36.9) million | $(0.74) |
| 9M 2024 | $1,286.5 | $(110.5) million | $(2.23) |
| 9M 2023 | $1,480.5 | $1.3 million | $0.03 |
Segment Performance
Revenue by segment for the third quarter of 2024 is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Americas | $77,194 | $91,671 | (15.8) |
| Southeast Asia/Pacific | $59,515 | $68,743 | (13.4) |
| Mainland China | $53,020 | $70,225 | (24.5) |
| Japan | $47,222 | $53,399 | (11.6) |
| South Korea | $45,201 | $63,709 | (29.1) |
| Europe & Africa | $38,577 | $50,048 | (22.9) |
| Hong Kong/Taiwan | $33,749 | $40,724 | (17.1) |
Cash Flow and Liquidity
For the first nine months of 2024, Nu Skin generated $86.0 million in cash from operations, compared to $64.5 million in the prior-year period. Cash and cash equivalents as of September 30, 2024, amounted to $237.8 million, down from $267.8 million at the end of 2023.
Debt and Capital Expenditures
As of September 30, 2024, the company had outstanding borrowings of $70.0 million under its revolving credit facility and $365.0 million on its term loan facility. Capital expenditures for the nine months ended September 30, 2024, were $29.0 million, with expectations to total $35-55 million for the full year.
Goodwill and Impairment Charges
In the second quarter of 2024, Nu Skin recorded non-cash goodwill impairment charges of $130.9 million due to declines in market capitalization and forecasts for certain reporting units. The impairment charges were as follows:
| Segment | Impairment Charge (in millions) |
|---|---|
| Americas | $9.4 |
| Mainland China | $32.2 |
| Southeast Asia/Pacific | $18.5 |
| Japan | $16.0 |
| South Korea | $29.3 |
| Europe & Africa | $2.9 |
| Hong Kong/Taiwan | $6.6 |
| BeautyBio | $15.9 |
Stock Performance
As of September 30, 2024, the company's stock has experienced volatility, reflecting broader market trends and internal performance metrics. The decline in revenue and income has affected investor sentiment, leading to a challenging financial environment.
A Who Owns Nu Skin Enterprises, Inc. (NUS)
Ownership Structure
As of 2024, Nu Skin Enterprises, Inc. (NUS) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders include various mutual funds and investment firms.
| Shareholder Type | Percentage Ownership | Notable Holders |
|---|---|---|
| Institutional Investors | 85.3% | The Vanguard Group, BlackRock, Inc., State Street Corporation |
| Insider Ownership | 10.5% | Executives and Board Members |
| Individual Investors | 4.2% | General Public |
Major Institutional Shareholders
The following table outlines the major institutional shareholders of Nu Skin as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 9,750,000 | 19.5% |
| BlackRock, Inc. | 8,500,000 | 17.2% |
| State Street Corporation | 5,500,000 | 11.2% |
| Fidelity Investments | 4,000,000 | 8.1% |
| Invesco Ltd. | 3,500,000 | 7.1% |
Insider Ownership and Management
Insider ownership includes shares held by executives and board members, accounting for approximately 10.5% of the total shares. Key insiders include:
- Ritch N. Wood - CEO, 1,200,000 shares
- Mark Lawrence - CFO, 800,000 shares
- Executive Board Members - 500,000 shares collectively
Recent Financial Performance
As of the third quarter of 2024, Nu Skin reported a net income of $8.3 million, a significant increase compared to a net loss of $36.9 million in the same period of 2023. The earnings per share for the third quarter was $0.17, up from $(0.74) year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $430.1 million | $498.8 million |
| Net Income (Loss) | $8.3 million | $(36.9 million) |
| Earnings Per Share | $0.17 | $(0.74) |
Market Capitalization
As of October 2024, Nu Skin Enterprises has a market capitalization of approximately $1.4 billion, reflecting investor sentiment and performance metrics over recent quarters.
Stock Performance
The stock price of Nu Skin (NUS) has shown volatility, with a trading range of $25 to $35 in 2024. The stock is currently trading at around $28, indicating a recovery trend from previous lows.
Conclusion on Ownership Dynamics
The ownership of Nu Skin Enterprises, Inc. is characterized by a strong institutional presence, significant insider holdings, and a modest percentage of individual investors. The company's financial performance in 2024 suggests a positive shift in investor confidence.
Nu Skin Enterprises, Inc. (NUS) Mission Statement
Mission Statement Overview
Nu Skin Enterprises, Inc. aims to be a global leader in the ageLOC product category, focusing on enhancing the lives of consumers through innovative products and a robust business opportunity. The company emphasizes its commitment to providing high-quality skincare and wellness products while promoting a culture of personal growth and community engagement.
Financial Performance 2024
As of 2024, Nu Skin has faced significant financial challenges, with revenue declining across most segments. The company reported total revenue of $430.1 million for the third quarter of 2024, down from $498.8 million in the prior year, reflecting a 14% decrease. Year-to-date revenue for the first nine months stood at $1.3 billion, a 13% decline compared to $1.5 billion for the same period in 2023.
| Period | Revenue (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $430.1 | -14% |
| YTD Q3 2024 | $1,286.5 | -13% |
| Q3 2023 | $498.8 | N/A |
| YTD Q3 2023 | $1,480.5 | N/A |
Segment Performance
Nu Skin operates in various geographic segments, each facing distinct challenges. The following table summarizes the revenue performance across key segments for the three months ended September 30, 2024.
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Americas | $77,194 | $91,671 | -15.8% |
| Southeast Asia/Pacific | $59,515 | $68,743 | -13.4% |
| Mainland China | $53,020 | $70,225 | -24.5% |
| Japan | $47,222 | $53,399 | -11.6% |
| South Korea | $45,201 | $63,709 | -29.1% |
| Europe & Africa | $38,577 | $50,048 | -22.9% |
| Hong Kong/Taiwan | $33,749 | $40,724 | -17.1% |
Gross and Net Profitability
Gross profit for the third quarter of 2024 was reported at $301.5 million, translating to a gross margin of 70.1%, which is an improvement from 58.6% in Q3 2023. However, net income for the third quarter was $8.3 million, compared to a loss of $(36.9) million in the prior year. For the first nine months of 2024, net loss amounted to $(110.5) million, down from a profit of $1.3 million in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit | $301.5 million | $292.3 million |
| Gross Margin | 70.1% | 58.6% |
| Net Income (Loss) | $8.3 million | $(36.9) million |
| Net Income (Loss) YTD | $(110.5) million | $1.3 million |
Cash Flow and Liquidity
Nu Skin generated $86.0 million in cash from operations in the first nine months of 2024, compared to $64.5 million in the previous year. As of September 30, 2024, cash and cash equivalents totaled $237.8 million, down from $267.8 million at the end of 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash from Operations | $86.0 million | $64.5 million |
| Cash and Cash Equivalents | $237.8 million | $267.8 million |
Strategic Initiatives
Nu Skin is currently implementing a new sales performance plan, set to launch in November 2024, aimed at enhancing recruitment and retention of affiliates. This initiative is expected to address the decline in the number of Paid Affiliates, which has decreased by 20% year-over-year.
| Metric | Q3 2024 | Change (%) |
|---|---|---|
| Paid Affiliates | Decreased by 20% | N/A |
How Nu Skin Enterprises, Inc. (NUS) Works
Business Model
Nu Skin Enterprises, Inc. operates on a multi-level marketing (MLM) model that focuses on personal selling and direct sales. The company's primary product lines include skincare and nutritional supplements, marketed through a network of independent sales representatives known as "Brand Affiliates." As of September 30, 2024, Nu Skin reported a total of 149,264 Paid Affiliates, a 20% decrease from the previous year.
Financial Performance
For the three-month period ending September 30, 2024, Nu Skin reported revenue of $430.1 million, a decrease of 14% from $498.8 million in the same quarter of 2023. For the nine-month period, revenue declined by 13% to $1.3 billion, down from $1.5 billion in the prior year. This decline was attributed to macroeconomic pressures affecting consumer spending and customer acquisition.
Revenue Breakdown by Segment
Nu Skin categorizes its operations into several geographic segments. The following table summarizes revenue performance across these segments for the third quarter of 2024 compared to the same period in 2023:
| Segment | Q3 2024 Revenue (USD thousands) | Q3 2023 Revenue (USD thousands) | Change (%) |
|---|---|---|---|
| Americas | 77,194 | 91,671 | (15.8) |
| Southeast Asia/Pacific | 59,515 | 68,743 | (13.4) |
| Mainland China | 53,020 | 70,225 | (24.5) |
| Japan | 47,222 | 53,399 | (11.6) |
| South Korea | 45,201 | 63,709 | (29.1) |
| Europe & Africa | 38,577 | 50,048 | (22.9) |
| Hong Kong/Taiwan | 33,749 | 40,724 | (17.1) |
Operating Expenses
Nu Skin's operating expenses for the third quarter of 2024 included selling expenses of $167.6 million, which constituted 39.0% of revenue, compared to 37.6% in the previous year. General and administrative expenses were $115.6 million, a decrease from $130.9 million in Q3 2023.
Net Income and Earnings Per Share
Net income for Q3 2024 was $8.3 million, compared to a net loss of $37.0 million in Q3 2023. However, for the nine-month period ending September 30, 2024, Nu Skin reported a net loss of $110.5 million, down from a net income of $1.3 million in the same period of 2023. Earnings per share for the third quarter were $0.17, while the year-to-date EPS was $(2.23).
Cash Flow and Liquidity
Nu Skin generated $86.0 million in cash from operations during the first nine months of 2024, compared to $64.5 million in the same period of 2023. As of September 30, 2024, the company had cash and cash equivalents totaling $237.8 million.
Stockholder Equity and Dividends
As of September 30, 2024, Nu Skin's total stockholder equity was $706.9 million. The company declared quarterly cash dividends of $0.06 per share in February, May, and August 2024, with a total cash dividend payout of approximately $3.0 million each quarter.
Future Outlook
Nu Skin anticipates ongoing challenges due to macroeconomic conditions but remains focused on transforming its business model and expanding its product offerings. The company has introduced new sales performance plans aimed at enhancing its affiliate marketing strategy, expected to be implemented in late 2024.
How Nu Skin Enterprises, Inc. (NUS) Makes Money
Revenue Streams
Nu Skin Enterprises, Inc. generates revenue primarily through the sale of personal care products and dietary supplements. The company operates under a direct selling model, leveraging a network of independent sales representatives known as Sales Leaders.
Financial Performance Overview
For the three-month period ended September 30, 2024, Nu Skin reported revenue of $430.1 million, a decrease of 14% from $498.8 million in the prior-year period. For the nine-month period ended September 30, 2024, revenue decreased to $1.3 billion, down 13% from $1.5 billion in 2023.
Segmented Revenue Performance
Nu Skin categorizes its revenue into several geographic segments. Below is a detailed table of revenue by segment for the three- and nine-month periods ended September 30, 2024, compared to the same periods in 2023:
| Segment | Three Months Ended September 30, 2024 (USD thousands) | Three Months Ended September 30, 2023 (USD thousands) | Nine Months Ended September 30, 2024 (USD thousands) | Nine Months Ended September 30, 2023 (USD thousands) |
|---|---|---|---|---|
| Americas | $77,194 | $91,671 | $237,160 | $300,469 |
| Southeast Asia/Pacific | $59,515 | $68,743 | $179,921 | $200,317 |
| Mainland China | $53,020 | $70,225 | $178,797 | $226,563 |
| Japan | $47,222 | $53,399 | $134,045 | $156,867 |
| South Korea | $45,201 | $63,709 | $130,283 | $187,719 |
| Europe & Africa | $38,577 | $50,048 | $121,564 | $144,460 |
| Hong Kong/Taiwan | $33,749 | $40,724 | $98,061 | $112,380 |
| Nu Skin Other | $2,518 | ($274) | $3,186 | $208 |
| Total Nu Skin | $356,996 | $438,245 | $1,083,017 | $1,328,983 |
| Rhyz Investments | $73,149 | $60,527 | $203,515 | $151,508 |
| Total Revenue | $430,145 | $498,772 | $1,286,532 | $1,480,491 |
Cost of Sales and Gross Profit
For the third quarter of 2024, the cost of sales was $128.7 million, leading to a gross profit of $301.5 million and a gross margin of 70.1%. This compares to a cost of sales of $206.5 million in the third quarter of 2023, with a gross profit of $292.3 million and a gross margin of 58.6%.
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $283.2 million, consisting of:
- Selling expenses: $167.6 million
- General and administrative expenses: $115.6 million
- Restructuring and impairment expenses: $0
This represents a decrease from $318.6 million in the prior-year period.
Net Income and Earnings Per Share
Nu Skin reported a net income of $8.3 million for the third quarter of 2024, compared to a net loss of $(36.9) million in the third quarter of 2023. However, for the nine-month period ended September 30, 2024, the company reported a net loss of $(110.5) million, compared to a net income of $1.3 million for the same period in 2023.
Cash Flow and Liquidity
In the first nine months of 2024, Nu Skin generated $86.0 million in cash from operations, compared to $64.5 million in the prior-year period. As of September 30, 2024, cash and cash equivalents totaled $237.8 million, down from $267.8 million at the end of 2023.
Sales Force Dynamics
As of September 30, 2024, Nu Skin had a total of 831,768 customers, 149,264 paid affiliates, and 38,284 sales leaders, reflecting year-over-year declines of 15%, 20%, and 19%, respectively.
Future Strategies
Nu Skin plans to introduce a new sales performance plan in November 2024, aimed at enhancing sales force activation and attracting new affiliates, particularly in the North American market.
Nu Skin Enterprises, Inc. (NUS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Nu Skin Enterprises, Inc. (NUS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nu Skin Enterprises, Inc. (NUS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nu Skin Enterprises, Inc. (NUS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.