Direct seller Nu Skin Enterprises Inc. posted gains for the second quarter, with a 7 percent revenue increase and continued expansion in China.
For the second quarter, Nu Skin’s revenue increased to $600.5 million, compared with $560.2 million in the prior-year period. Net income was $44.7 million, up slightly from $44.6 million in the comparable-year period. Earnings per share totaled 79 cents, up from 75 cents in the prior-year period. Foreign currency effects negatively affected EPS by 13 cents, the company said.
Based in Provo, Utah, the company develops skin-care products under the Nu Skin and AgeLoc brands. Nu Skin also makes antiaging supplements, hair-care, body-care, oral-care, sun protection and cosmetics products.
Nu Skin brought in $236.7 million in sales from China, an 18 percent year-over-year increase. North Asia accounted for $165.9 million in sales, down 4 percent; the Americas accounted for $67.9 million in sales, a decrease of 19 percent; the South Asia-Pacific region brought in $92.3 million in sales, a 36 percent increase; and Europe, the Middle East and Africa accounted for $37.7 million in revenues, an increase of 6 percent, year-over-year.
For the six months ended June 30, Greater China posted a 2 percent sales increase to $395.4 million; North Asia experienced an 8 percent decline to $317.1 million; sales in the Americas dropped 18 percent to $133.6 million; the South Asia-Pacific region brought in $155.9 million, a 12 percent increase; and Europe, the Middle East and Africa posted a 2 percent increase, to $70.3 million.
“China is getting back on track and continues to hold great potential,” said president and chief executive officer Truman Hunt, on the company’s earnings call. “In the second half of the year we’ll focus on the full-time launch of AgeLoc Me…we’ve also been working on products specifically for the China market.” NuSkin is developing an air filter for customers in China, he said.
“We expect the healthy momentum of our business to continue,” said Hunt.
In line with that forecast, NuSkin raised its guidance for the full year to $2.2 billion to $2.24 billion, with a negative foreign currency impact of 2 to 3 percent. “For the third quarter, we project revenue of $560 [million] to $580 million, including a negative currency impact of 1 to 2 percent,” said chief financial officer Ritch Wood, who projected third-quarter EPS of 80 cents to 84 cents, and full-year EPS of $2.44 to $2.54.
“We are pleased with our second-quarter results and remain optimistic about the future as we continue to introduce our latest AgeLoc products,” said Hunt. “During the quarter, we held significant product introduction events in South Asia-Pacific and Greater China, generating revenue growth of 36 and 18 percent, respectively.”
The company is hoping for a push of AgeLoc Me in the U.S. in the second half, Hunt said.
Nu Skin appointed Simon Shen of Ping An ZQ China Growth Ltd., one of its investors, to its board. It also declared a 35.5 cents per share dividend.