Nu Skin Enterprises Inc. posted continued gains for its third quarter.
The company is behind the AgeLoc antiaging skin-care products sold primarily in Asia. For the third quarter, Nu Skin had net income of $56.9 million, up from $16.3 million year-over-year. The company posted net sales of $604.2 million, a 6 percent increase from the $571.3 million it brought in during the prior-year period. Earnings per share were 98 cents, which included a 9-cent positive impact from the company closing its operations in Venezuela.
“We are pleased that we exceeded guidance and posted year-over-year growth during the quarter,” said Truman Hunt, president and chief executive officer. “We introduced AgeLoc Youth in South Korea in the quarter and saw continued enthusiasm around the globe for our latest AgeLoc products. We produced double-digit gains in North Asia and greater China and posted growth in each of our regions with the exception of South Asia-Pacific, where a significant limited-time offer in the prior year made for a difficult comparison. We also generated modest growth in sales leaders globally.”
He cited the rollouts of AgeLoc Youth and AgeLoc Me, the latter of which provides customized skin-care based on the users’s skin concerns. “These new products are receiving good responses in the marketplace,” Hunt said on the company’s earnings call. “We know that this product is perfectly in line with the customization trend that we’re seeing all around us.”
The AgeLoc Me device in South Korea specifically accounted for $49 million, Hunt said.
“We’re also seeing a rising tide of enthusiasm for business building through social media,” Hunt said. “This trend really started in the U.K., which is now our largest market in Europe…we’re investing significantly in building out a platform for our sales leaders.”
In greater China, Nu Skin increased sales 15 percent to $216.5 million from $188.7 million. In North Asia, sales gained 24 percent, with Nu Skin bringing in $208.7 million from $167.7 million in the prior-year period. The South Asia-Pacific region saw a 35 percent decline, to $70.9 million from $108.9 million. In the Americas, Nu Skin posted a 1 percent sales increase to $71.3 million from $70.8 million, and in Europe, the Middle East and Africa, posted a 5 percent sales increase to $36.9 million from $35.2 million. For the three quarters ended Sept. 30, Nu Skin’s sales increased less than one percent, hovering around $1.67 billion.
Nu Skin raised its revenue guidance for the year to between $2.23 and $2.25 billion, projecting $550 million to $570 million in revenue for the fourth quarter. The company anticipates EPS of between 77 and 81 cents.
“We are raising our guidance for the year given strong results in the third quarter,” Hunt said. “Fourth-quarter promotional activities are focused on driving consumer loyalty. South Korea and South Asia will run AgeLoc Me incentives, the Americas will launch AgeLoc Me and Japan and South Korea will launch AgeLoc Youth. In addition, we have chosen to push the launch of AgeLoc Me in the greater China region to January 2017.”
For 2017, the company is planning on introducing a skin-care cleansing device that it said it will demonstrate at its investor day in December.