UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 
August 8, 2024
 
 
Date of Report (Date of earliest event reported)
 

 
NU SKIN ENTERPRISES, INC.
 
 
(Exact name of registrant as specified in its charter)
 

Delaware
 
001-12421
 
87-0565309
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification Number)

 
75 West Center Street
Provo, Utah 84601
 
 
(Address of principal executive offices and zip code)
 

 
(801) 345-1000
 
 
(Registrant’s telephone number, including area code)
 

 
N/A
 
 
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, $.001 par value
NUS
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02
Results of Operations and Financial Condition.

On August 8, 2024, Nu Skin Enterprises, Inc. (the “Company”) issued a press release announcing its financial results for the three- and six-month periods ended June 30, 2024, and certain other information. A copy of the press release is attached as Exhibit 99.1 to this report.

The information furnished pursuant to this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.

Item 9.01
Financial Statements and Exhibits.

(d)
Exhibits.

Nu Skin Enterprises’ press release dated August 8, 2024, regarding financial results for the three- and six-month periods ended June 30, 2024.
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
NU SKIN ENTERPRISES, INC.
 
(Registrant)
   
 
/s/ James D. Thomas
 
 
James D. Thomas
 
Chief Financial Officer
   
Date:  August 8, 2024
 

 


Exhibit 99.1


FOR IMMEDIATE RELEASE

Nu Skin Enterprises Reports Second Quarter Results

PROVO, Utah — Aug. 8, 2024 — Nu Skin Enterprises Inc. (NYSE: NUS) today announced second quarter results in line with top-line guidance.
 
Executive Summary
Q2 2024 vs. Prior-year Quarter
 
Revenue
   
$439.1 million; (12.2)%
          (4.2)% FX impact or $(21.0) million
          Rhyz revenue $67.8 million; 32.3%
Earnings Per Share (EPS)
   
$(2.38) or $0.21 excluding restructuring and impairment charges, compared to $0.54
Customers
   
893,514; (14)%
Paid Affiliates
   
155,486; (17)% or (9)% excluding an adjustment to eligibility requirements
Sales Leaders
   
38,592; (16)%
 
“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.
 

Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 2
“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
 
Revenue
   
$439.1 million compared to $500.3 million
          (4.2)% FX impact or $(21.0) million
          Rhyz revenue $67.8 million; +32.3%
Gross Margin
   
70.0% compared to 72.9%
          Nu Skin business was 76.1% compared to 77.2%
Selling Expenses
   
37.7% compared to 37.0%
          Nu Skin business was 42.2% compared to 40.2%
G&A Expenses
   
26.9% compared to 27.4%
Operating Margin
   
(28.6)% or 5.4% excluding restructuring and impairment charges compared to 8.5%
Interest Expense
   
$6.7 million compared to $5.8 million
Other Income/(Expense)
   
$0.6 million compared to $0.4 million
Income Tax Rate
   
10.2% or 41.4% excluding restructuring and impairment charges compared to 27.5%
EPS
   
$(2.38) or $0.21 excluding restructuring and impairment charges compared to $0.54

Stockholder Value
 
Dividend Payments
   
$3.0 million
Stock Repurchases
   
$0.0 million
          $162.4 million remaining in authorization


Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 3
Q3 and Full-year 2024 Outlook
 
Q3 2024 Revenue
   
$430 to $465 million; (14)% to (7)%
          Approximately (4) to (3)% FX impact
Q3 2024 EPS
   
$0.08 to $0.18 or $0.15 to $0.25 non-GAAP
2024 Revenue
   
$1.73 to $1.81 billion; (12)% to (8)%
          Approximately (4) to (3)% FX impact
2024 EPS
   
$(2.01) to $(1.81) or $0.75 to $0.95 non-GAAP

“As we continue to refine our operating model during our transformation, we remain diligent in pursuing cost saving initiatives going forward, including additional product portfolio optimization along with expense management,” said James D. Thomas, chief financial officer.  “We remain on track with our cost efficiency program as reflected by our reductions in G&A expense, helping to protect profitability despite revenue pressures. During the quarter, we generated $51.2 million in cash from operations, reduced inventory levels and paid down debt to strengthen our balance sheet. We also performed an impairment analysis and recorded a $141 million non-cash charge for impairment of goodwill and other intangibles as a result of the decline in stock price and current market conditions.
 
“Given that we have performed in-line with expectations for the first half of the year while also considering the increasing FX headwind, we believe it prudent to narrow our annual revenue guidance range. We are now projecting 2024 revenue in the $1.73 to $1.81 billion range, with earnings of $(2.01) to $(1.81) or $0.75 to $0.95 excluding restructuring and impairment charges. Our Q3 guidance assumes continued sequential improvement with projected revenue of $430 to $465 million and earnings per share of $0.08 to $0.18 or $0.15 to $0.25 excluding restructuring and impairment charges.”
 
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.
 

Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 4
About Nu Skin Enterprises Inc.
 
The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by 40 years of scientific research, the company’s products help people look, feel and live their best with brands including Nu Skin® personal care, Pharmanex® nutrition and ageLOC® anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories.
 
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the macro environment and the company’s performance, growth and growth opportunities, strategies, sales force, shareholder value, product previews and launches, product portfolio optimization, transformation, evolution, operational and financial initiatives, digital tools and initiatives, new market expansion, and plans for developing and emerging markets; projections regarding revenue, expenses, margins, tax rates, earnings per share, foreign currency fluctuations, future dividends, uses of cash, financial position and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “anticipate,” “become,” “”plan,” accelerate,” “project,” “continue,” “outlook,” “guidance,” “improve,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words.
 
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:
 

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;

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;

economic conditions and events globally;

competitive pressures in the company’s markets;

risk that epidemics, including COVID-19 and related disruptions, or 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;

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

Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 5

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; and

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.
 
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.
 
Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.
 
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.
 

Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 6
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):

   
Three Months Ended
June 30,
         
Constant-
Currency
 
   
2024
   
2023
   
Change
   
Change
 
Nu Skin
                       
Americas
 
$
84,935
   
$
107,641
     
(21.1
)%
   
(15.1
)%
Mainland China
   
64,710
     
88,362
     
(26.8
)%
   
(24.5
)%
Southeast Asia/Pacific
   
60,341
     
63,764
     
(5.4
)%
   
(0.5
)%
Japan
   
42,587
     
50,862
     
(16.3
)%
   
(4.9
)%
South Korea
   
44,119
     
53,686
     
(17.8
)%
   
(14.3
)%
Europe & Africa
   
40,714
     
46,968
     
(13.3
)%
   
(12.3
)%
Hong Kong/Taiwan
   
33,846
     
37,108
     
(8.8
)%
   
(5.5
)%
Nu Skin other
   
(4
)
   
597
     
(100.7
)%
   
(100.8
)%
Total Nu Skin
   
371,248
     
448,988
     
(17.3
)%
   
(12.6
)%
Rhyz Investments
                               
Manufacturing
   
51,473
     
45,551
     
13.0
%
   
13.0
%
Rhyz other
   
16,360
     
5,718
     
186.1
%
   
186.1
%
Total Rhyz Investments
   
67,833
     
51,269
     
32.3
%
   
32.3
%
Total
 
$
439,081
   
$
500,257
     
(12.2
)%
   
(8.0
)%

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):

   
Six Months Ended
June 30,
         
Constant-
Currency
 
   
2024
   
2023
   
Change
   
Change
 
Nu Skin
                       
Americas
 
$
159,966
   
$
208,798
     
(23.4
)%
   
(17.5
)%
Mainland China
   
125,777
     
156,338
     
(19.5
)%
   
(16.5
)%
Southeast Asia/Pacific
   
120,406
     
131,574
     
(8.5
)%
   
(4.4
)%
Japan
   
86,823
     
103,468
     
(16.1
)%
   
(5.3
)%
South Korea
   
85,082
     
124,010
     
(31.4
)%
   
(28.5
)%
Europe & Africa
   
82,987
     
94,412
     
(12.1
)%
   
(12.1
)%
Hong Kong/Taiwan
   
64,312
     
71,656
     
(10.2
)%
   
(7.6
)%
Nu Skin other
   
668
     
482
     
38.6
%
   
38.6
%
Total Nu Skin
   
726,021
     
890,738
     
(18.5
)%
   
(14.1
)%
Rhyz Investments
                               
Manufacturing
   
101,775
     
81,318
     
25.2
%
   
25.2
%
Rhyz other
   
28,591
     
9,663
     
195.9
%
   
195.9
%
Total Rhyz Investments
   
130,366
     
90,981
     
43.3
%
   
43.3
%
Total
 
$
856,387
   
$
981,719
     
(12.8
)%
   
(8.8
)%


Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 7
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:

   
Three Months Ended
June 30,
       
   
2024
   
2023
   
Change
 
Customers
                 
Americas
   
226,626
     
263,138
     
(14
)%
Mainland China
   
179,021
     
214,907
     
(17
)%
Southeast Asia/Pacific
   
88,662
     
106,283
     
(17
)%
Japan
   
109,357
     
112,484
     
(3
)%
South Korea
   
99,358
     
112,019
     
(11
)%
Europe & Africa
   
143,336
     
177,472
     
(19
)%
Hong Kong/Taiwan
   
47,154
     
54,815
     
(14
)%
Total Customers
   
893,514
     
1,041,118
     
(14
)%

Paid Affiliates
                 
Americas
   
29,531
     
36,048
     
(18
)%
Mainland China
   
24,404
     
28,825
     
(15
)%
Southeast Asia/Pacific(1)
   
29,701
     
32,769
     
(9
)%
Japan(1)
   
21,575
     
36,765
     
(41
)%
South Korea
   
22,116
     
23,012
     
(4
)%
Europe & Africa
   
17,402
     
19,906
     
(13
)%
Hong Kong/Taiwan
   
10,757
     
10,327
     
4
%
Total Paid Affiliates
   
155,486
     
187,652
     
(17
)%

Sales Leaders
                 
Americas
   
6,070
     
7,872
     
(23
)%
Mainland China
   
10,266
     
13,777
     
(25
)%
Southeast Asia/Pacific
   
5,601
     
5,814
     
(4
)%
Japan
   
6,116
     
5,853
     
4
%
South Korea
   
4,689
     
5,784
     
(19
)%
Europe & Africa
   
3,432
     
4,105
     
(16
)%
Hong Kong/Taiwan
   
2,418
     
2,602
     
(7
)%
Total Sales Leaders
   
38,592
     
45,807
     
(16
)%

(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.


“Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force.


“Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks.


“Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter.


Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 8
NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)

   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
   
2024
   
2023
   
2024
   
2023
 
Revenue
 
$
439,081
   
$
500,257
   
$
856,387
   
$
981,719
 
Cost of sales
   
131,904
     
135,542
     
255,146
     
269,130
 
Gross profit
   
307,177
     
364,715
     
601,241
     
712,589
 
                                 
Operating expenses:
                               
Selling expenses
   
165,463
     
185,165
     
319,005
     
373,289
 
General and administrative expenses
   
117,921
     
137,044
     
242,487
     
270,943
 
Restructuring and impairment expenses
   
149,350
     
     
156,484
     
9,787
 
Total operating expenses
   
432,734
     
322,209
     
717,976
     
654,019
 
                                 
Operating income (loss)
   
(125,557
)
   
42,506
     
(116,735
)
   
58,570
 
Interest expense
   
6,720
     
5,769
     
14,045
     
10,657
 
Other expense, net
   
629
     
376
     
233
     
3,788
 
                                 
Income (loss) before provision for income taxes
   
(131,648
)
   
37,113
     
(130,547
)
   
51,701
 
Provision (benefit) for income taxes
   
(13,390
)
   
10,221
     
(11,756
)
   
13,433
 
                                 
Net income (loss)
 
$
(118,258
)
 
$
26,892
   
$
(118,791
)
 
$
38,268
 
                                 
Net income (loss) per share:
                               
Basic
 
$
(2.38
)
 
$
0.54
   
$
(2.39
)
 
$
0.77
 
Diluted
 
$
(2.38
)
 
$
0.54
   
$
(2.39
)
 
$
0.76
 
                                 
Weighted-average common shares outstanding (000s):
                               
Basic
   
49,688
     
49,931
     
49,613
     
49,789
 
Diluted
   
49,688
     
50,161
     
49,613
     
50,098
 


Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 9
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)

   
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
 


Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 10
NU SKIN ENTERPRISES, INC.
Reconciliation of Operating Margin Excluding Impact of Restructuring and Impairment to GAAP Operating Margin
(in thousands, except for per share amounts)

                         
   
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
 

NU SKIN ENTERPRISES, INC.
Reconciliation of Effective Tax Rate Excluding Impact of Restructuring and Impairment to GAAP Effective Tax Rate
(in thousands, except for per share amounts)

   
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
%


Nu Skin Enterprises Reports Second Quarter 2024 Financial Results
page 11
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Restructuring and Impairment to GAAP Earnings Per Share
(in thousands, except for per share amounts)

   
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
 

NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Restructuring and Impairment to GAAP Earnings Per Share

   
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
 

# # #
CONTACTS:
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577

 

v3.24.2.u1
Document and Entity Information
Aug. 08, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 08, 2024
Entity File Number 001-12421
Entity Registrant Name NU SKIN ENTERPRISES, INC.
Entity Central Index Key 0001021561
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 87-0565309
Entity Address, Address Line One 75 West Center Street
Entity Address, City or Town Provo
Entity Address, State or Province UT
Entity Address, Postal Zip Code 84601
City Area Code 801
Local Phone Number 345-1000
Title of 12(b) Security Class A Common Stock, $.001 par value
Trading Symbol NUS
Security Exchange Name NYSE
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false

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