Nu Skin Enterprises Inc. posted decreases in sales and earnings for the second quarter.
The skin-care and devices business posted $550.1 million in net sales, down 8.4 percent from $600.5 million in the year-ago period. Net income was $42 million, down from $44.7 million in the year-ago period. Earnings per share were 77 cents, down from 79 cents in the prior year period, but higher than Nu Skin’s outlook of 65 to 70 cents.
“We believe our second-quarter results provide momentum we can build on as we prepare to introduce several new products and significant business initiatives in the fourth quarter,” said Nu Skin chief executive officer Ritch Wood. “We remain focused on customer acquisitions and are encouraged by our year-over-year customer growth. Looking forward, we believe our product and business initiatives, coupled with continued efforts to increase our customer base, will help support business and sales leader growth in the second half of the year.”
The company’s sales were down in all regions except Europe, the Middle East and Asia, where it posted a 1.3 percent increase to $38.2 million in sales, from $37.7 million in sales. The South Asia-Pacific region posted the steepest decline, down 26.4 percent, to $67.9 million from $92.3 million.
Nu Skin noted that it was facing a difficult year-over-year comparison for the quarter, particularly because of the limited-time offer sales recorded in the second quarter of 2016.
Nu Skin posted an 11 percent decline in sales representatives, but a 5 percent increase in customers. On the company’s earnings call Wednesday, executives said customer growth should lead to sales leader growth later in the year.
In October, the business is planning to unveil a new skin-care device, the Lumi Spa, executives said. They also hinted at an upcoming longwear lip product line on the company’s call, but declined to provide further details.
“The Lumi Spa will preview…[in China] in the fourth quarter…we anticipate a nice step forward in the fourth quarter,” Wood said. Executives said they expect a $100 million lift from the Lumi Spa launch.
The company is projecting $540 million to $560 million in revenue for the third quarter, with EPS between 71 cents and 76 cents. Full-year sales are projected at $2.26 to $2.3 billion, with EPS of $3.20 to $3.30.