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NU SKIN ENTERPRISES, INC. (NUS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue was $445.6M, above the company’s $410–$445M guidance; adjusted EPS was $0.38, above the $0.19–$0.29 guidance, while GAAP EPS was $(0.73) due to restructuring and portfolio write-downs .
  • Rhyz delivered strong growth (+27.7% YoY to $83.1M), offsetting continued weakness in Greater China and South Korea; Nu Skin core revenue fell 14.4% YoY with broad-based declines in customers and sales leaders .
  • 2025 outlook introduced: Q1 revenue $345–$365M and adjusted EPS $0.10–$0.20 (GAAP $2.65–$2.75, including the Mavely sale gain); FY revenue $1.48–$1.62B and adjusted EPS $0.90–$1.30 (GAAP $3.45–$3.85) with ~3% FX headwind .
  • Management emphasized restructuring completion, portfolio optimization (including a $38.8M inventory write-down in Q4) and debt reduction, positioning for margin improvement and developing market growth; Americas showed constant-currency improvement and Latin America momentum .

What Went Well and What Went Wrong

  • What Went Well

    • Beat guidance: “revenue came in above our guidance range… adjusted EPS… exceeded our projections” (CEO) .
    • Margin discipline: adjusted operating margin improved to 7.7% vs 6.4% YoY, with lower G&A as % of revenue and steady selling expenses (CFO) .
    • Strategic execution: Sale of Mavely for $250M, 5x return, strengthening balance sheet; ongoing access to technology via commercial relationship (CEO) .

  • What Went Wrong

    • Core Nu Skin pressure: Nu Skin revenue down 14.4% YoY; customers, paid affiliates, and sales leaders fell 15%, 13%, and 16%, respectively .
    • Geographic headwinds: Greater China (-21.1%) and South Korea (-30.9%) were notable drags; management expects macro pressures to persist into 2025 (CEO Q&A) .
    • Non-GAAP adjustments reflect operational reset: $38.8M inventory write-down impacted GAAP gross margin; heavy restructuring and impairment charges through 2024 .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$439.081 $430.145 $445.552
Diluted EPS (GAAP) ($)$(2.38) $0.17 $(0.73)
Diluted EPS (Adjusted) ($)$0.21 $0.56 $0.38
Gross Margin % (GAAP)70.0% 70.1% 62.7%
Gross Margin % (Adj)—71.8% (PY exclude inventory write-off for comparison) 71.4% (exclude inventory write-off)
Operating Margin % (GAAP)(28.6)% 4.2% (11.9)%
Operating Margin % (Adj)5.4% 7.9% 7.7%
FX impact on revenue$(21.0)M; 4.2% $(16.7)M; 3.4% $(20.1)M; 4.1%
Selling Expenses %37.7% 39.0% 37.1%
G&A Expenses %26.9% 26.9% 27.1%
Interest Expense ($M)$6.7 $6.5 $5.9
Other Income ($M)$0.6 $1.6 $1.1
Income Tax Rate (GAAP)10.2% 37.6% 37.5%

Segment revenue (Q4 2024 vs Q4 2023, $USD thousands)

SegmentQ4 2024 RevenueQ4 2023 RevenueYoY %Constant Currency %
Americas$85,356 $97,753 (12.7)% 3.8%
Southeast Asia/Pacific$64,925 $66,889 (2.9)% (3.4)%
Mainland China$56,438 $71,516 (21.1)% (21.2)%
Japan$47,512 $50,966 (6.8)% (3.8)%
Europe & Africa$42,600 $47,892 (11.0)% (10.1)%
South Korea$33,423 $48,380 (30.9)% (26.7)%
Hong Kong/Taiwan$32,549 $41,209 (21.0)% (20.0)%
Nu Skin Other$(354) $(1,066) 66.8% 67.0%
Total Nu Skin$362,449 $423,539 (14.4)% (9.7)%
Manufacturing (Rhyz)$47,882 $50,363 (4.9)% (4.9)%
Rhyz Other$35,221 $14,738 139.0% 139.0%
Total Rhyz$83,103 $65,101 27.7% 27.7%
Total Company$445,552 $488,640 (8.8)% (4.7)%

KPIs – Totals across quarters

KPIQ2 2024Q3 2024Q4 2024
Customers893,514 831,768 831,972
Paid Affiliates155,486 149,264 144,874
Sales Leaders38,592 38,284 36,912

Additional financial disclosures

  • Dividend payments: $3.0M in Q4 (no repurchases; $162.4M authorization remaining) .
  • Cash/debt actions: Debt reduced by $110M in 2024 via operations; subsequent $115M paid down in Q1’25 from Mavely proceeds (call commentary) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance / ActualChange
Revenue ($M)Q4 2024$410–$445 $445.6 (actual) Beat high end
Adjusted EPS ($)Q4 2024$0.19–$0.29 $0.38 (actual) Beat
Revenue ($B)FY 2024$1.73–$1.81 (Q2 guide) → $1.70–$1.73 (Q3 update) $1.732 (actual) Narrowed lower; achieved high end
Adjusted EPS ($)FY 2024$0.75–$0.95 (Q2 guide) → $0.65–$0.75 (Q3 update) $0.84 (actual) Beat revised range
Revenue ($M)Q1 2025—$345–$365; ~3% FX headwind New
EPS ($)Q1 2025—GAAP $2.65–$2.75; Adj $0.10–$0.20 New
Revenue ($B)FY 2025—$1.48–$1.62; ~3% FX headwind New
EPS ($)FY 2025—GAAP $3.45–$3.85; Adj $0.90–$1.30 New
DividendQ4 2024—$3.0M paid Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
AI/technology initiativesPreviewed MYND360; Nu Skin/Mavely app announced; ecosystem building Portfolio optimization and digital initiatives referenced Prysm iO intelligent wellness device, leveraging IO platform data; 25M treatments, 500k devices, 100M data points Scaling data-driven devices; pipeline progressing
Supply chain/operational efficiencyCost savings, restructuring underway Cost-efficiency program raised; G&A savings; inventory reduction Restructuring materially complete; shared services tech model; adjusted op margin up; inventory write-down to optimize portfolio Cost structure rightsized; targeting margin expansion
Tariffs/macroMacro pressures noted broadly Direct selling challenges; macro pressures emphasized Persistent consumer hesitation in China/Korea; expect continued pressure in 2025 Ongoing headwind in key markets
Product performanceRhyz growth +32.3% YoY; sequential gains in U.S. and SE Asia/Pacific Rhyz +20.9% YoY; core challenged Tru Face peptide retinol complex launch showing strong acceptance; Rhyz +27.7% YoY Rhyz consistent strength; selective product wins
Regional trendsSequential improvement in U.S., SE Asia/Pacific Broad declines; constant-currency details across regions Latin America momentum; Americas constant-currency growth; China/Korea weak Mixed; developing markets improving
Regulatory/legal (China)Risk disclosures on scrutiny and sentiment Continued risk disclosures Outlook cautious; sentiment pressured; competitive discounting No relief yet
R&D executionIntroduced MYND360; ecosystem vision Accelerated portfolio optimization Data-driven device development (Prysm iO); prestige Tru Face restage Innovation pipeline advancing

Management Commentary

  • “Our fourth quarter revenue came in above our guidance range… our adjusted earnings per share… exceeded our projections… growth in Latin America and parts of Southeast Asia was particularly encouraging” (CEO) .
  • “Adjusted operating margin for the quarter was 7.7%, up 130 bps… G&A declined to 27.1%… our 2023 restructuring plan is now materially complete” (CFO) .
  • “Prysm iO… can accurately measure micronutrient absorption in the skin… limited release in 2H 2025, global launch in 2026” (CEO) .
  • “We reduced our debt by $110 million… delivered $70 million in free cash flow… returned $12 million in dividends” (CFO) .
  • “Mavely… transacted for $250 million… 5x return… strengthened our balance sheet” (CEO) .

Q&A Highlights

  • China and South Korea: Management expects macro pressures to persist through 2025, with consumer hesitancy and local discount brands weighing on premium categories; forecasts assume conditions similar to 2024 (CEO) .
  • Markets poised for improvement: Americas (driven by Latin America), Southeast Asia/Pacific, Japan, and selected Europe markets could return to growth with developing market strategy and pricing actions (CEO/CFO) .
  • Amazon strategy (U.S.): Focus on eliminating unauthorized discount reselling to protect premium brand positioning while using Amazon for accessibility; does not disclose specific revenue; part of Americas performance (CEO) .
  • Debt reduction trajectory post-Mavely: $115M paid down in Q1’25 from transaction proceeds, aiming at cash-to-debt neutrality (CFO) .

Estimates Context

  • S&P Global Wall Street consensus data was unavailable at time of request due to a data access limit. As a result, we could not compare Q4 revenue and EPS to external consensus and instead benchmarked outcomes versus company guidance ranges .
  • Where estimates are needed for future revisions, monitor updated consensus after the 8-K and call; given the above-guidance delivery and 2025 margin focus, we expect adjustments to reflect stronger adjusted EPS trajectory (no external data available).

Key Takeaways for Investors

  • Above-guidance Q4 revenue and adjusted EPS, with improved adjusted operating margin and lower interest expense, demonstrate execution amid top-line pressures; watch whether sequential strength carries into Q1, seasonally weakest quarter .
  • Nu Skin core remains under pressure (customers, affiliates, leaders down), but developing markets (Latin America) and specific products (Tru Face) show traction; geographic mix shifts impact margins .
  • Structural reset largely complete; portfolio optimization (including the Q4 inventory write-down) should support ongoing margin and cash flow improvement as operations “rightsized” to revenue .
  • Rhyz continues to be a bright spot; the $250M Mavely transaction and ongoing commercial ties underscore optionality; management wants broader recognition of enterprise innovation value drivers .
  • 2025 guidance tilts to earnings growth despite modest revenue decline (ex-Mavely), aided by efficiency initiatives and ~3% FX headwind; monitor Prysm iO milestones and Tru Face global restage for product-led reacceleration .
  • Regionally, continued caution in China/Korea is warranted; pricing and developing-market strategies are levers in SE Asia/Pacific, Americas, Europe, and Japan (tone: constructive but guarded) .
  • Capital allocation: dividend maintained ($3.0M Q4), significant deleveraging via operations and Mavely proceeds; $162.4M repurchase authorization remains, but no buybacks in Q4 .