NU SKIN NET BEATS ESTIMATES
NEW YORK — Despite a strong U.S. dollar eating away at its overseas revenues, Nu Skin Enterprises Inc. reported earnings and sales growth in the first quarter.
For the three months ended March 31, the Provo, Utah-based direct beauty seller posted a 2.5 percent gain in net income to $12.9 million, or 16 cents a diluted share. That compares with earnings of $12.6 million, or 15 cents, in the year-ago period. Earnings per share beat the Wall Street consensus estimate by a penny.
Total revenues for the first quarter of fiscal 2002 inched up 1 percent to $131.2 million from $130 million last year.
Correcting for currency fluctuations and the strong dollar, net income would have increased 20 percent and revenues would have grown 10 percent.
“We are pleased with our overall performance,” said chief executive officer Steven Lund in a statement. “Contributing to our revenue growth are the solid gains in distributor leadership throughout the world. Record levels of executive distributors and solid revenue growth make us optimistic that 2002 will be a strong year for Nu Skin. New markets, exceptional product introductions, leveraging our investment on the Internet and other technologies and strong local management have resulted in our global growth.”
The number of executive distributors grew 21.6 percent worldwide compared with last year.
The solid quarterly results impressed Wall Street as Nu Skin shares spiked to a 52-week high of $14.85 on the New York Stock Exchange in midday Monday trading. The previous high was $13. By day’s end, the company’s stock closed up $1.14, or 8.9 percent, at $13.92.