Exhibit 99.1

FOR IMMEDIATE RELEASE

Nu Skin Enterprises Reports Third Quarter Financial Results

Executive Summary

Q3 2022 vs. Prior-year Quarter

 

“Our third quarter results were impacted more than anticipated by worsening macro headwinds, including prolonged COVID-related disruptions in Mainland China, slowdown in South Korea, persistent global inflation and excessive foreign currency pressure,” said Ryan Napierski, Nu Skin president and CEO. “Despite the challenging macro environment, we further strengthened our position as the world’s leading beauty device system company by introducing our connected ageLOC® LumiSpa® iO. This introduction, which continues in the fourth quarter, along with the expansion of ageLOC® Meta and Beauty Focus Collagen+ products and further advancement of our social commerce initiatives, helped us deliver constant-currency growth in four of our reporting segments. The growth was led by Southeast Asia/Pacific and our tenth consecutive quarter of growth in our U.S. market. Japan and our Taiwan/Hong Kong segments grew in constant currency, with reported currency declines due to unfavorable foreign currency.

“We remain focused on Nu Vision 2025 for driving long-term growth and shareholder value as we continue executing against the core elements including the introduction of EmpowerMe, our personalized beauty and wellness strategy, expansion of our affiliate-powered social commerce business model, and the enhancement of our digital platform. With more challenging macro conditions expected over the near to mid-term, we are pursuing a more aggressive tactical approach to our previously indicated restructuring to better align capabilities, resources and operational efficiencies. While these decisions are never easy, the moves we are making will place us in a stronger financial position going forward.”

Q3 2022 Year-over-year Operating Results

Stockholder Value

Q4 and Full-year 2022 Outlook

Conference Call

The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company’s website at ir.nuskin.com. A replay of the webcast will be available on the same page through Nov. 16, 2022.

 

About Nu Skin Enterprises, Inc.

Nu Skin Enterprises, Inc. (NYSE: NUS) is a global integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform. The company helps people look, feel and live their best with products that combine the best of science, technology and nature. Backed by more than 35 years of scientific research, Nu Skin develops innovative products including Nu Skin® personal care, Pharmanex® nutrition and the ageLOC® anti-aging brand which includes an award-winning line of beauty device systems. Nu Skin operates in approximately 50 markets worldwide in the Americas, Asia, Europe, Africa and the Pacific. Rhyz Inc. is the company’s strategic investment arm that includes a collection of technology and manufacturing companies to support growth in the core Nu Skin business. Nu Skin is committed to sustainability, including global initiatives such as transitioning to reduced and sustainable packaging for all products by 2030. The Nu Skin Force for Good Foundation also strives to improve children’s health, education and economic circumstances throughout the world. For more information, visit nuskin.com.

 

The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:

•	risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business;

•	adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;

•

risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events;

•	any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis;

•	political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets;

•	uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;

•	risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;

•	uncertainties regarding the future financial performance of the businesses the company has acquired;

•

risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;

•

regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements;

•	unpredictable economic conditions and events globally;

•

the company’s future tax-planning initiatives; any prospective or retrospective increases in duties or tariffs on the company’s products imported into the company’s markets outside of the United States; and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various markets; and

•	continued competitive pressures in the company’s markets.

The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.

Earnings per share, gross margin, operating margin, other income (expense), and income tax rate, each excluding restructuring and impairment charges and/or charges associated with our Grow Tech exit, also are non-GAAP financial measures. Restructuring and impairment charges and charges associated with our Grow Tech exit are not part of the ongoing operations of our underlying business. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of restructuring and impairment charges and charges associated with our Grow Tech exit facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share and other income (expense) calculated under GAAP, below.

The following table sets forth revenue for the three-month periods ended September 30, 2022 and 2021 for each of our reportable segments (U.S. dollars in thousands):

The following table sets forth revenue for the nine-month periods ended September 30, 2022 and 2021 for each of our reportable segments (U.S. dollars in thousands):

The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended September 30, 2022 and 2021:

(1)

The September 30, 2022 number reflects a modified Sales Leader definition, as described in our third quarter Form 10-Q.

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

(U.S. dollars in thousands, except per share amounts)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Revenue		$	537,805			$	641,152			$	1,703,319			$	2,022,233
Cost of sales			173,500				158,907				483,099				501,448
Gross profit			364,305				482,245				1,220,220				1,520,785
Operating expenses:
Selling expenses			216,478				260,333				678,603				816,887
General and administrative expenses			137,987				156,528				428,105				490,225
Restructuring and impairment expenses			30,124				—				30,124				—
Total operating expenses			384,589				416,861				1,136,832				1,307,112
Operating income (loss)			(20,284	)			65,384				83,388				213,673
Other income (expense), net			(8,680	)			2,781				(18,773	)			351
Income before provision for income taxes			(28,964	)			68,165				64,615				214,024
Provision (benefit) for income taxes			(3,574	)			18,436				17,052				57,527
Net income (loss)		$	(25,390	)		$	49,729			$	47,563			$	156,497
Net income (loss) per share:
Basic		$	(0.51	)		$	0.99			$	0.95			$	3.11
Diluted		$	(0.51	)		$	0.97			$	0.94			$	3.03
Weighted-average common shares outstanding (000s):
Basic			50,199				50,098				50,187				50,304
Diluted			50,199				51,260				50,822				51,629

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

NU SKIN ENTERPRISES, INC.

Reconciliation of Gross Margin Excluding Impact of Restructuring and Impairment to GAAP Gross Margin

(in thousands, except per share amounts)

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Core Nu Skin Business Gross Margin Excluding Impact of Restructuring and Impairment to GAAP Gross Margin

(in thousands, except per share amounts)

 

 

 NU SKIN ENTERPRISES, INC.

Reconciliation of Operating Margin Excluding Impact of Restructuring to GAAP Operating Margin

(in thousands, except per share amounts)

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Other Income (Expense), Net Excluding Charges Associated with our Q4 2021 Exit from Grow Tech to GAAP Operating Margin

(in thousands, except per share amounts)

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Effective Tax Rate Excluding Impact of Restructuring to GAAP Effective Tax Rate

(in thousands, except per share amounts)

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Earnings Per Share Excluding Impact of Restructuring and Impairment to GAAP Earnings Per Share

(in thousands, except per share amounts)

NU SKIN ENTERPRISES, INC.

Reconciliation of Earnings Per Share Excluding Certain Charges to GAAP Earnings Per Share

# # #

CONTACTS:

---