Shares of Nu Skin Enterprises Inc. fell nearly 4 percent as trading commenced Tuesday after the firm provided cautious second-quarter guidance following a first quarter in which it far exceeded expected results.
In the three months ended March 31, the Provo, Utah-based direct marketer of anti-aging products saw net income expand 18.4 percent to $64.3 million, or $1.05 a diluted share, from $54.3 million, or 90 cents, in the year-ago period. On average, analysts expected EPS of 94 cents.
Led by a 63.3 percent increase in sales in Greater China, to $278.9 million, revenues expanded to $671.1 million, 24 percent above the prior-year level of $541.3 million and above the analysts’ consensus estimate of $656.8 million. The company said revenue would have been 4 percent higher at constant currency, although foreign exchange lifted its results in Greater China by 2 percent.
However, shares fell 3.9 percent to $84.21 in the opening minutes of New York Stock Exchange trading Tuesday as the company provided guidance for the second quarter that was well below Wall Street estimates. The company anticipates sales of about $700 million and EPS of about $1.25 for the period. Analysts had expected sales of $789.5 million and EPS of $1.43.
“Because we are only a few days into the recommencement of promotional activities in China, it is difficult to forecast how the business will perform,” said Ritch Wood, chief financial officer. “Ideally, we would have more time to monitor the direction of the business in China before providing updated guidance.”
Nu Skin elected to suspend promotional meetings and the recruitment of new sales personnel in China after media reports questioned its recruiting and selling practices.
“Our results are particularly encouraging given the business disruption we experienced in China during the first quarter, as well as currency headwinds we faced in many markets,” said Truman Hunt, president and chief executive officer. “With respect to China, our team took aggressive, proactive steps to address media and regulatory concerns in a timely manner. While those first-quarter events in China will have a negative impact on 2014 results, we are now focused on generating sustainable long-term growth.”
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty