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Nu Skin Reports Record Q2 for 2012
Posted: July 30, 2012
Nu Skin Enterprises, Inc. announced record second-quarter results with revenue of $593.2 million, a 40% improvement over the prior-year period. Revenue was negatively impacted 2% from foreign currency fluctuations. Earnings per share for the quarter increased 45% to $0.94, compared to $0.65 in the prior year.
"Once again, we are pleased to announce record quarterly results, highlighted by the most successful regional product launch in our history that boosted revenue by more than 150% in greater China and 66% in South Asia," said Truman Hunt, president and CEO of Nu Skin. "The tremendous launches of our latest ageLOC products generated approximately $165 million in product orders, with $140 million reported in revenue during the quarter and the balance to be shipped in the third quarter. Our product innovation is energizing our customer base and sales force, as demonstrated by strong growth in both our actives and executive distributors.
"While emerging markets continue to drive significant growth, we are also very pleased with results in our mature markets during the second quarter, including local-currency revenue improvements of 21% in the Americas and 20% in Europe. We also saw positive trend improvements in Japan.
"Our overall profitability continued to improve as we generated a 16.5% operating margin during the quarter. In addition, we utilized the strength of our balance sheet to repurchase approximately 2.4 million shares for $108 million," said Hunt.
Regionally, North Asia second-quarter revenue for Nu Skin was $177.7 million, compared to $183.1 million for the same period in 2011. Results were negatively impacted 1% from foreign currency fluctuations, and South Korea experienced a local-currency revenue decline of 3% while Japan's local-currency revenue decline improved to 1%. The number of executive distributors in the region was down 5% while the number of actives improved 2%.
The company's revenue in greater China increased 152% to $199.7 million, compared to $79.4 million in the prior-year period. Foreign currency fluctuations positively impacted revenue 1%. Results included approximately $100 million of product launch sales. The executive distributor and employee sales representative count in the region improved 111%, while the number of actives increased 31% compared to the prior year.