Nu Skin Enterprises has robust growth ambitions.
The company said it aims to scale the skin-care business to $10 billion operation by 2025, a goal that would require about 300,000 sales representatives, executives said at their investor day in New York on Thursday.
Before the meeting started, Nu Skin said Ritch Wood, chief financial officer, would step into the chief executive officer position while Truman Hunt embarks on a three-year mission on behalf of The Church of Jesus Christ of Latter-day Saints in mid-2017. Ryan Napierski will be promoted to president.
Nu Skin executives identified five key goals for the year during the meeting, including maximizing market penetration, launching the new Lumi Spa device, sustaining growth in China (which is up 15 percent), deploying social-selling platform Me Commerce and rebrand and repackaging its products.
The company provided more details for the first time on its Lumi Spa device, set to launch next year and clean and treat skin at the same time. The waterproof and drop-proof device will include three interchangeable heads and the option of five different cleansing gels. The device and one gel will retail for about $155.
Nu Skin also plans to roll out Me Commerce in about five core markets next year as it works to ramp up social selling, a tactic that executives said is working well in the U.K. Napierski also identified the masstige segment as one where the company “need[s] to be more competitive.”
Nu Skin reported net income of $56.9 million in the third quarter, with net sales up 6 percent to $604.2 million. The gains were driven by the company’s AgeLoc antiaging products. Nu Skin also makes a product called AgeLoc Me, a customizable system that the company has said fits with larger personalization trends in the beauty space.
In addition to the executive shifts unveiled Thursday, Nu Skin said it was expecting fourth-quarter earnings per share to be at the high end of its previous guidance of $2.40 to $2.60 per share. The company expects revenue to be closer to the low end of its $2.23 billion guidance because of the strength of the dollar.
For 2017, Nu Skin is projecting revenue of $2.26 billion to $2.3 billion, or local currency growth of 4 to 6 percent. EPS is projected to be $3.10 to $3.25.
Both Wood and Napierski have been with the company for more than two decades. Wood joined in 1993 and became cfo in 2002, and Napierski joined in 1995. He serves as president of global sales and operations, and sales will remain his focus. “My love is in driving revenue, I’ll continue to be very focused on that,” Napierski said.
“It has been a privilege to service and be chief executive officer for such an extraordinary company and to work with some of the finest people in the world,” Hunt said. “My association with our remarkable sales leaders and fellow employees has been the highlight of my career. Together, we have been able to carry out the Nu Skin mission of being a force for good in the world. I have worked closely with Ritch and Ryan for a number of years and have the utmost confidence in their ability to lead Nu Skin going forward.”
“Ritch and Ryan have been key leaders at Nu Skin for many years and have been deeply involved in establishing our strategic vision for the future,” said chairman Steven J. Lund. “We are pleased to enjoy significant experience in our management team and are confident that Ritch and Ryan are well prepared to lead our next wave of growth.”