Nu Skin Enterprises, Inc. NUS posted fourth-quarter 2024 results, with the top and bottom lines surpassing Zacks Consensus Estimate. Earnings increased and net sales declined year over year. For 2025, the company expects improving trends in several markets but anticipates economic challenges in Greater China and South Korea.
In the fourth quarter, Nu Skin posted adjusted earnings of 38 cents a share. The metric improved from adjusted earnings of 37 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 22 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin Enterprises, Inc. price-consensus-eps-surprise-chart | Nu Skin Enterprises, Inc. Quote
Quarterly revenues of $445.6 million tumbled 8.8% year over year. Revenues included a negative impact of 4.1% from foreign currency fluctuations. On a constant-currency basis, revenues fell 4.7%. Rhyz revenues rose 27.7% year over year to $83.1. NUS’s top line surpassed the Zacks Consensus Estimate of $441 million.
Sales leaders were down 16% year over year to 36,912. Nu Skin’s customer base dropped 15% to 831,972. The company’s paid affiliates were down 13% to 144,874. On an adjusted basis, paid affiliates tumbled 12%.
Closer Look at NUS’ Q4 Results
Adjusted gross profit of $317.9 million decreased 9.8% from $352.4 million in the year-ago quarter. The company’s adjusted gross margin came in at 71.4%, down 70 basis points from 72.1% in the year-ago quarter. The adjusted gross margin at the Nu Skin Business was 76.6%, down 80 basis points year over year.
Selling expenses declined 8.8% to $165.4 million from the $181.3 million reported in the prior-year quarter. As a percentage of revenues, the metric was 37.1%, flat year over year. Nu Skin business’ selling expenses were 40.3%, down 50 basis points from 40.8% in the prior-year quarter.
General and administrative expenses of $120.9 million declined 16.6% from $145 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses were 27.1%, down 260 basis points from 29.7% in the year-ago period.
Adjusted operating income increased 10.1% year over year to $34.5 million. The company’s adjusted operating margin increased 130 basis points to 7.7% from 6.4% in the year-ago quarter.
Regional Revenue Results for NUS’ Q4
Region-wise, revenues declined 12.7%, 2.9%, 21.1%, 6.8%, 30.9%, 11% and 21% in the Americas, Southeast Asia/Pacific, Mainland China, Japan, South Korea, Europe and Africa, and Hong Kong/Taiwan, respectively. Meanwhile, the company’s other revenues surged 66.8% year over year.
NUS’ Financial Health Snapshot
This Zacks Rank #5 (Strongly Sell) company ended the quarter with cash and cash equivalents of $186.9 million, long-term debt of $363.6 million, and total stockholders' equity of $651.5 million. In the reported quarter, the company paid out dividends of $3 million while not making any share repurchases. The company has $162.4 million remaining under the current share repurchase authorization.
Nu Skin announced a cash dividend of 6 cents per share, payable Mar. 5, 2025, of shareholders’ record as of Feb. 24.
NUS Stock Past Three-Month Performance
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What to Expect From Nu Skin in 2025?
NUS anticipates revenues of $1.48-$1.62 billion for 2025, which suggests a 15-6% decline from the year-ago period’s reported figure. This indicates a drop of 11-3% when excluding Mavely's revenues from 2024. The company envisions unfavorable foreign currency impacts of 3% on 2025 revenues.
Earnings per share (EPS) for 2025 are anticipated to be $3.45-$3.85, or between 90 cents and $1.30 when excluding gains from the Mavely transaction.
For the first quarter of 2025, revenues are expected between $345 million and $365 million, representing a decline of 17% to 13%, including an approximate 3% negative impact from foreign exchange. EPS for the quarter is projected to be $2.65-$2.75, or between 10 cents and 20 cents when excluding the gains from the Mavely transaction.
The company’s shares have lost 15.3% in the past three months compared with the industry’s 5.9% decline.
Three Better-Ranked Picks
Some better-ranked stocks are Boot Barn Holdings, Inc. BOOT, lululemon athletica inc. LULU and Gildan Activewear Inc. GIL.
Boot Barn is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2025 earnings and sales indicates growth of 21.4% and 14.9%, respectively, from the fiscal 2024 reported levels. BOOT delivered a trailing four-quarter average earnings surprise of 7.2%.
lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. It currently has a Zacks Rank of 2 (Buy). LULU delivered a 6.7% earnings surprise in the last reported quarter.
The consensus estimate for lululemon’s fiscal 2025 earnings and sales indicates growth of 12.5% and 9.7%, respectively, from the fiscal 2024 reported levels. LULU delivered a trailing four-quarter average earnings surprise of 6.7%.
Gildan Activewear is a manufacturer and marketer of premium quality branded basic activewear. It carries a Zacks Rank #2 at present.
The consensus estimate for Gildan Activewear’s 2024 earnings and sales indicates growth of 15.6% and 1.5%, respectively, from the 2023 reported levels. GIL delivered a trailing four-quarter average earnings surprise of 5.4%.
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