Nu Skin Enterprises, Inc. announced record first-quarter results with revenue of $671.1 million, a 24% improvement over the prior-year period. Revenue was negatively impacted 4% by foreign currency fluctuations. Earnings per share for the quarter were $1.05, representing a 17% year-over-year improvement.
“We are pleased to report record first-quarter results, generating year-over-year growth in all five of our regions,” said Truman Hunt, Nu Skin president and CEO. “Our results are particularly encouraging given the business disruption we experienced in China during the first quarter, as well as currency headwinds we faced in many markets. With respect to China, our team took aggressive, proactive steps to address media and regulatory concerns in a timely manner. While these first-quarter events in China will have a negative impact on 2014 results, we are now focused on generating sustainable, long-term growth.”
In greater China, first-quarter revenue increased 63% to $278.9 million, compared to $170.8 million in the prior-year period. The region’s results were positively impacted 2% by foreign currency fluctuations. The sales leader count in the region improved 41%, while the number of actives increased 17% compared to the prior year.
First-quarter revenue in North Asia increased 5% to $195.5 million, compared to $185.9 million for the same period in 2013. The region’s results were negatively impacted 4% by foreign currency fluctuations. South Korea generated local-currency revenue growth of 38% while Japan local-currency revenue declined 14%. The number of sales leaders in the region was up 7%, and the number of actives improved 11%.
Revenue in the Americas improved 6% to $79.9 million, compared to $75.7 million in the prior-year period. The region’s results were negatively impacted 12% by foreign currency fluctuations. The number of sales leaders in the region improved 17%, and the number of actives improved 10% compared to the prior year.
Revenue in South Asia/Pacific was $71.2 million, a 6% increase compared to the prior year. The region’s results were negatively impacted 10% by foreign currency fluctuations. The region’s first-quarter sales leaders improved 27% while actives increased 17% compared to the same period in 2013.
And revenue in the EMEA region was $45.6 million, a 9% improvement over the prior-year period. The region’s results were negatively impacted 2% by foreign currency fluctuations. Sales leaders and actives increased 5% and 3%, respectively, compared to the prior year.
Regarding its outlook, Hunt noted, “While we face a tough comparable in 2014 due to nearly 50 percent top-line growth in 2013, we look forward to the roll-out of our ageLocTR90 weight management system, as well as the introduction of the ageLoc Tru Face Essence Ultra skin care serum in the greater China region. We continue to believe that our focus on innovating in the anti-aging product category will drive growth in consumer demand, as well as interest in Nu Skin’s earnings opportunity.
“We are especially pleased to be moving forward in China, having recently resumed key business operations in the market. Last week, we also celebrated the opening of our greater China Innovation Park in Shanghai. The new campus will serve as our regional headquarters and the local hub for our anti-aging research, product manufacturing, and sales operations. We remain optimistic about our long-term potential in China and continue to have high expectations for our business in all of our other regions,” concluded Hunt.
“Because we are only a few days into the recommencement of promotional activities in China, it is difficult to forecast how the business will perform,” said Ritch Wood, Nu Skin’s CFO. “Ideally, we would have more time to monitor the direction of the business in China before providing updated guidance. That said, our current estimate of second-quarter revenue would be around $700 million with earnings per share of approximately $1.25.”
