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Nu Skin Reports Record Revenue for Q3 2012
Posted: October 31, 2012
Nu Skin Enterprises, Inc. announced record third-quarter results with revenue of $526.2 million, a 23% improvement over the prior-year period. Revenue was negatively impacted 3% from foreign currency fluctuations. Earnings per share for the quarter were $0.87, a 21% year-over-year improvement. Additionally, the company announced that it is increasing its full-year 2012 revenue guidance to $2.11 billion, a 21% growth rate over 2011.
“By continuing to execute on our business strategy, we were able to generate another record quarter, putting us on track to reach a milestone of more than $2 billion in annual revenue in 2012,” said Truman Hunt, president and CEO of Nu Skin. “The quarter was highlighted by healthy trends in all of our regions, strong demand for our anti-aging products and growth in our customer base and sales force.
“We were particularly pleased with local-currency growth in Japan and South Korea. This growth reflects increased distributor activity in anticipation of the October limited-time-offer of our ageLOC Body Spa and related products. Our South Asia/Pacific and greater China regions generated solid local-currency growth of 53% and 64%, respectively. The Americas and Europe regions also reported healthy gains with approximately 20% year-over-year local-currency growth,” continued Hunt.
“Building on our momentum, we held successful regional conventions in the United States, Japan and Europe in the month of October. We are encouraged by the sales activity we are experiencing in both emerging and more mature markets and we expect to continue to sustain growth in 2013. We also continue to improve the execution of our product launches, strengthen our future product pipeline, and generate healthy growth throughout the world,” Hunt concluded.
For regional results, third-quarter revenue in North Asia was $184.7 million, compared to $184.3 million for the same period in 2011. The region’s results were negatively impacted approximately 2% from foreign currency fluctuation, while Japan local-currency revenue improved 1% and South Korea experienced local-currency revenue growth of 6%. The number of executives in the region was up 2% while the number of actives improved 1%.
For greater China, third-quarter revenue increased 64% to $136.6 million, compared to $83.4 million in the prior-year period. Foreign currency fluctuations did not materially impact revenue in the region. Local-currency revenue in mainland China improved 60% over the same quarter in 2011, and third-quarter revenue in Hong Kong and Taiwan included $13.6 million and $7.2 million, respectively, from limited-time offers in the second quarter. The sales leader count in the region improved 51%, while the number of actives increased by 38% compared to the prior-year.
Revenue in South Asia/Pacific was $91.1 million, a 47% improvement compared to the prior year. Sales in the quarter were negatively impacted 5% by foreign currency fluctuations. Limited-time offers generated $29.3 million in revenue during the third quarter. The region’s third-quarter executive count improved 22% while the active count increased 14% compared to the same period in 2011.
Revenue in the Americas improved 19% to $70.5 million, compared to $59.4 million in the prior-year period. The United States posted a 15% revenue increase during the quarter. The number of executives improved 14% while the number of actives remained approximately even with the prior year.
Revenue in Europe was $43.2 million, a 9% improvement over the prior-year period. Results in the region were negatively impacted 14% by foreign currency fluctuations. Executives and actives in Europe increased 23% and 12%, respectively, compared to the prior year.
“Based on the strength of our business and the growth of our global sales force, we are raising our expectations for the fourth quarter and full year,” said Ritch Wood, Nu Skin’s CFO. “We expect fourth quarter revenue to be in the $520 million to $530 million range, which increases our annual revenue guidance to $2.10 billion to $2.11 billion. Fourth quarter revenue guidance anticipates a 2% negative impact from foreign currency fluctuations. We expect earnings per share to be $0.78–0.82 for the fourth quarter, and $3.33–3.37 for the year.”
“We continue to invest in a number of initiatives that we believe will sustain business growth, including our anti-aging product pipeline, sales force development, as well as focus on emerging markets,” said Hunt.