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Impressive Growth in China Pushes Nu Skin to $550 Million in Revenue
Posted: May 2, 2013
Nu Skin Enterprises, Inc. announced record first-quarter results with revenue of $550.1 million, a 19% improvement over the prior-year period. Revenue was negatively impacted 3% by foreign currency fluctuations. Additionally, the company announced that it is increasing its full-year 2013 revenue guidance by $190 million to be in the $2.51–2.54 billion range, and the company now expects 2013 earnings to be in the range of $4.18-4.30 per share.
“We kicked off the year with tremendous momentum, generating 22% local-currency revenue growth this quarter,” said Truman Hunt, president and CEO. “We are pleased with the overall direction of the business, particularly with trends in the North Asia and greater China regions. The first quarter marked the third consecutive quarter of year-over-year local-currency growth for Japan, while South Korea continues to be a solid contributor to our success. Greater China continues to be our fastest-growing region, with each market within the region posting solid quarterly growth.”
First-quarter revenue in North Asia was $188.2 million, compared to $182.2 million for the same period in 2012. The region’s results were negatively impacted 8% by foreign currency fluctuations. Japan local-currency revenue improved 13% while South Korea generated local-currency revenue growth of 9%. The number of sales leaders in the region was up 12% while the number of actives improved 8%.
In greater China, first-quarter revenue increased 90% to $175.7 million, compared to $92.6 million in the prior-year period. The region’s results were positively impacted 2% by foreign currency fluctuations. Mainland China local-currency revenue grew 141%. The sales leader count in the region improved 91%, while the number of actives increased 73% compared to the prior year.
Revenue in the Americas improved 15% to $76.5 million, compared to $66.3 million in the prior-year period. The region’s results were negatively impacted 3% by foreign currency fluctuations. U.S. revenue grew by 7% during the quarter. The number of sales leaders in the region improved 9% while the number of actives decreased 4% compared to the prior year.
Revenue in South Asia/Pacific was $67.2 million, a 13% decline compared to the prior year. Excluding the prior-year’s product launch sales, revenue would have been up 8%. The region’s results were not materially impacted by foreign currency fluctuations. The region’s first-quarter sales leaders improved 9% while actives increased 8% compared to the same period in 2012.
Revenue in the EMEA region was $42.4 million, a 3% decline over the prior-year period. The region’s results were not materially impacted by foreign currency fluctuations. Sales leaders and actives increased 1% and 5%, respectively, compared to the prior year.
“Given the positive momentum of the business, we are on track to achieve another record year of revenue and earnings,” said Hunt. “Our anti-aging product portfolio continues to drive strong consumer demand and impressive growth in our global sales force.
“Given the strength of our business, as well as the optimism we have for the upcoming ageLOC weight management system, we are significantly raising our 2013 guidance,” said Ritch Wood, CFO. “Our increased guidance accounts for a stronger-than-expected currency headwind, which we now forecast will negatively impact revenue for the year by approximately 5%, an increase of 1–2% from our previous guidance. We project second-quarter 2013 revenue to be in the $570-580 million range with a negative currency impact of 4–5%, and earnings per share to be $0.91–0.95. For the full year, we anticipate revenue will be in the $2.51–2.54 billion range with earnings per share to be $4.18–4.30.”