Exhibit 99.1

FOR IMMEDIATE RELEASE

Nu Skin Enterprises Reports Second Quarter Results

 

Executive Summary

Q2 2024 vs. Prior-year Quarter

 

 

“We are pleased with our progress as we perform to plan on our transformational efforts, and we are on track as evidenced by our second quarter results,” said Ryan Napierski, Nu Skin president and CEO. “Our revenue was in-line with our expectations despite a 4 percent FX headwind, while adjusted earnings per share slightly exceeded our projections due to heightened operational discipline, excluding our restructuring and impairment charges. As our core Nu Skin business continues to navigate the macro-economic environment, we were encouraged by sequential gains in several of our markets including the U.S. and most of Southeast Asia/Pacific. Additionally, our Rhyz business grew 32 percent versus the prior-year quarter led by strong performances in our Mavely affiliate platform and manufacturing companies.

 

“We are intensifying our transformation efforts to become a leading integrated beauty, wellness and lifestyle ecosystem by building synergistic value between our Nu Skin core and Rhyz. In late July, we held our first Western market, in-person affiliate event in over five years with a similar event for Eastern markets coming in September. At the event, we were able to drive energy and alignment among our leaders as we previewed our MYND360 cognitive health division and promoted new activation efforts to grow our salesforce. We also announced plans for a Nu Skin/Mavely app, with Mavely’s more than 1,200 brands and 70,000 everyday influencers, for our Nu Skin affiliates, anticipated for second-half introduction in the U.S.

 

“We are enhancing our developing market strategy including a revised business model, targeted product offering and streamlined operating infrastructure beginning with Latin America and parts of Southeast Asia in the second half. In addition, we are intensifying our plans to enter India with a proprietary business model that will be a catalyst for expansion into other emerging markets. We are also exploring integrated brand building initiatives, including digital marketing and third-party marketplaces, as we strive to be wherever our customers seek to find us.”

 

Q2 2024 Year-over-year Operating Results

 

Stockholder Value

 

Q3 and Full-year 2024 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 Aug. 22, 2024.

 

About Nu Skin Enterprises Inc.

 

 

 

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:

 

 

 

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, operating margin and income tax rate, each excluding restructuring and impairment charges, also are non-GAAP financial measures. Restructuring and impairment charges 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 these charges facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, operating margin and income tax rate calculated under GAAP, below.

 

The following table sets forth revenue for the three-month periods ended June 30, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):

The following table sets forth revenue for the six-month periods ended June 30, 2024, and 2023 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 June 30, 2024, and 2023:

(1)  The June 30, 2024, number is affected by a change in eligibility requirements for receiving certain rewards within our compensation structure. We plan to implement these changes in additional segments over the next several quarters.

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

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

		June 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	224,250			$	256,057
Current investments			8,671				11,759
Accounts receivable, net			71,554				72,879
Inventories, net			243,994				279,978
Prepaid expenses and other			105,937				81,198
Total current assets			654,406				701,871
Property and equipment, net			411,918				432,965
Operating lease right-of-use assets			88,071				90,107
Goodwill			99,885				230,768
Other intangible assets, net			88,464				105,309
Other assets			243,228				245,443
Total assets		$	1,585,972			$	1,806,463
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	36,305			$	43,505
Accrued expenses			242,288				260,366
Current portion of long-term debt			30,000				25,000
Total current liabilities			308,593				328,871
Operating lease liabilities			70,318				70,943
Long-term debt			428,327				478,040
Other liabilities			92,570				106,641
Total liabilities			899,808				984,495
Commitments and contingencies
Stockholders’ equity:
Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued			91				91
Additional paid-in capital			621,440				621,853
Treasury stock, at cost – 40.9 million and 41.1 million shares			(1,564,090	)			(1,570,440	)
Accumulated other comprehensive loss			(116,995	)			(100,006	)
Retained earnings			1,745,718				1,870,470
Total stockholders' equity			686,164				821,968
Total liabilities and stockholders’ equity		$	1,585,972			$	1,806,463

		Three months ended June 30,								Six months ended June 30,
		2024				2023				2024				2023
Operating Income		$	(125,557	)		$	42,506			$	(116,735	)		$	58,570
Impact of restructuring and impairment:
Restructuring and impairment			149,350				-				156,484				9,787
Adjusted operating income		$	23,793			$	42,506			$	39,749			$	68,357
Operating margin			(28.6	)%			8.5	%			(13.6	)%			6.0	%
Operating margin, excluding restructuring impact			5.4	%			8.5	%			4.6	%			7.0	%
Revenue		$	439,081			$	500,257			$	856,387			$	981,719

		Three months ended June 30,								Six months ended June 30,
		2024				2023				2024				2023
Provision (benefit) for income taxes		$	(13,390	)		$	10,221			$	(11,756	)		$	13,433
Impact of restructuring and impairment on provision for income taxes			20,715				-				23,071				2,593
Provision for income taxes, excluding impact of restructuring and impairment		$	7,325			$	10,221			$	11,315			$	16,026
Income before provision for income taxes			(131,648	)			37,113				(130,547	)			51,701
Impact of restructuring and impairment expense:
Restructuring and impairment			149,350				-				156,484				9,787
Income before provision for income taxes, excluding impact of restructuring and impairment		$	17,702			$	37,113			$	25,937			$	61,488
Effective tax rate			10.2	%			27.5	%			9.0	%			26.0	%
Effective tax rate, excluding restructuring and impairment impact			41.4	%			27.5	%			43.6	%			26.1	%

		Three months ended June 30,								Six months ended June 30,
		2024				2023				2024				2023
Net income		$	(118,258	)		$	26,892			$	(118,791	)		$	38,268
Impact of restructuring and impairment expense:
Restructuring and impairment			149,350				-				156,484				9,787
Tax impact			(20,715	)			-				(23,071	)			(2,593	)
Adjusted net income		$	10,377			$	26,892			$	14,622			$	45,462
Diluted earnings per share		$	(2.38	)		$	0.54			$	(2.39	)		$	0.76
Diluted earnings per share, excluding restructuring impact		$	0.21			$	0.54			$	0.29			$	0.91
Weighted-average common shares outstanding (000)			49,688				50,161				49,613				50,098

		Three months ended September 30, 2024								Year ended December 31, 2024
		Low end				High end				Low end				High end
Earnings Per Share		$	0.08			$	0.18			$	(2.01	)		$	(1.81	)
Impact of restructuring and impairment expense:
Restructuring and impairment			0.10				0.10				3.25				3.25
Tax impact			(0.03	)			(0.03	)			(0.50	)			(0.50	)
Adjusted EPS		$	0.15			$	0.25			$	0.75			$	0.95