NU SKIN ENTERPRISES REPORTS 42 PERCENT EPS GROWTH AND
15 PERCENT REVENUE GROWTH IN THE SECOND QUARTER

PROVO, Utah - Aug. 4, 2021 - Nu Skin Enterprises, Inc. (NYSE: NUS) today announced second-quarter 2021 revenue of $704.1 million and earnings per share (EPS) of $1.15 driven by an increase in operating margin of 260 basis points.

Executive Summary
Q2 2021 vs. Prior-year Quarter
Revenue:
$704.1 million; +15%
•+6% fx impact or $36.9 million
Earnings Per Share (EPS):
$1.15; +42%
Sales Leaders:
64,228; +15%
Customers:
1,467,617; (2%)

'Our growth and success this quarter and over the past year reflect our strategy of delivering world-class beauty and wellness products, being customer obsessed, and digitally enabling our business,' said Ritch Wood, chief executive officer. 'Our performance was led by continued growth in our beauty device systems and further adoption of social commerce. In addition, we significantly improved profitability during the quarter, which led to strong earnings per share growth. We have a solid foundation in place, and I am fully confident in Ryan and our leadership team to build on the momentum and take Nu Skin to the next level.'

Ryan Napierski, president and CEO-elect, added, 'We continue to advance our vision of becoming the world's leading beauty and wellness company, powered by our dynamic affiliate opportunity platform. During the quarter, we strengthened our position as the market leader in beauty device systems as our latest device system, ageLOC Boost, generated momentum with a strong launch in EMEA. Additionally, we are pleased with the rollout of Nutricentials Bioadaptives, which is targeted at a millennial/Gen Z consumer. In the back half of the year, we will be begin rolling out Beauty Focus Collagen+, which leverages our unique strength in both beauty and wellness, and ageLOC Meta, our next significant Pharmanex product introduction.

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Nu Skin Enterprises Reports Second-quarter 2021 Results
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'We are pleased with 15 percent growth in sales leaders, while customers declined slightly due to a significant surge in the prior year. To better support our affiliates with customer acquisition, we will be rolling out additional digital tools over the next several quarters such as personalized social commerce shops in Mainland China. This represents a significant step forward in deploying our digital tools in the world's largest social commerce market.'

Q2 2021 Year-over-year Operating Results
Revenue:
$704.1 million compared to $612.4 million
•+6% fx impact
Gross Margin:
75.6% compared to 74.8%
•Nu Skin business was 78.3% compared to 77.6%
Selling Expenses:
39.5% compared to 40.6%
•Nu Skin business was 42.4% compared to 43.3%
G&A Expenses:
24.0% compared to 24.7%
Operating Margin:
12.1% compared to 9.5%
Other Income / (Expense):
($4.0) million compared to $1.6 million
Income Tax Rate:
27.1% compared to 29.8%
•Benefited by geographic mix
EPS:
$1.15 compared to $0.81

Stockholder Value
Dividend Payments:
$19.0 million
Stock Repurchases:
$10.0 million
•$265.4 million remaining in authorization

Q3 and Full-year 2021 Outlook
Q3 2021 Revenue:
$700 to $730 million; 0 to 4%
•Approximately +2 to 3% fx impact
Q3 2021 EPS:
$1.10 to $1.20; +2 to 11%
2021 Revenue:
$2.81 to $2.87 billion; +9 to 11%
•Approximately +3 to 4% fx impact
2021 EPS:
$4.30 to $4.50; +18 to 24%

Mark Lawrence, chief financial officer, added, 'We reported 42 percent EPS growth driven by strong improvements in both gross margin and operating margin as a result of continued expense control and supply chain efficiency. We are raising our EPS guidance for the year as we continue to focus on generating enhanced value for our shareholders.'
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Nu Skin Enterprises Reports Second-quarter 2021 Results
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About Nu Skin Enterprises, Inc.
Founded more than 35 years ago, Nu Skin Enterprises, Inc. (NSE) empowers innovative companies with sustainable solutions, opportunities, technologies and life-improving values. The company currently focuses its efforts around innovative consumer products, product manufacturing and controlled environment agriculture technology. The NSE family of companies includes Nu Skin, which develops and distributes a comprehensive line of premium-quality beauty and wellness solutions through a global network of sales leaders in Asia, the Americas, Europe, Africa and the Pacific; and Rhyz, our strategic investment arm that includes a collection of sustainable manufacturing and technology innovation companies. Nu Skin Enterprises is traded on the New York Stock Exchange under the symbol 'NUS.' More information is available at nuskinenterprises.com.
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company's current expectations and beliefs. All statements other than statements of historical fact are 'forward-looking statements' for purposes of federal and state securities laws and include, but are not limited to, statements of management's expectations regarding the company's performance, growth, shareholder value, vision, product pipeline and product introductions, digital tools, customers and sales leaders, affiliates, strategies and initiatives; projections regarding revenue, earnings per share, foreign currency fluctuations and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as 'believe,' 'expect,' 'anticipate,' 'project,' 'outlook,' 'guidance,' 'plan,' 'forecast,' 'expand,' 'will,' 'would,' 'could,' 'may,' 'might,' the negative of these words and other similar words.

The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:

•
risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business;

•
adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others;

•
risk that direct selling laws and regulations in any of the company's markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company's business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events;

•
any failure of current or planned initiatives or products to generate interest among the company's sales force and customers and generate sponsoring and selling activities on a sustained basis;

•
political, legal, tax and regulatory uncertainties associated with operating in international markets, including Mainland China;

•
uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
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Nu Skin Enterprises Reports Second-quarter 2021 Results
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•
risk of foreign-currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;

•
uncertainties regarding the future financial performance of the businesses the company has acquired;

•
risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;

•
regulatory risks associated with the company's products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements;

•
unpredictable economic conditions and events globally, including trade policies and tariffs;

•
the company's future tax-planning initiatives; any prospective or retrospective increases in duties on the company's products imported into the company's markets outside of the United States; and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; and

•
continued competitive pressures in the company's markets.
The company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company's beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.

Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company's performance. It is calculated by translating the current period's revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period's revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company's revenue from period to period.

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Nu Skin Enterprises Reports Second-quarter 2021 Results
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The following table sets forth revenue for the three-month periods ended June 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):
Three Months Ended
June 30,
Constant-
Currency
2021
2020
Change
Change
Nu Skin
Mainland China
$
154,182
$
146,332
5
%
(4
)%
Americas/Pacific
151,730
127,919
19
%
14
%
South Korea
88,604
76,915
15
%
6
%
EMEA
83,115
50,776
64
%
49
%
Southeast Asia
70,751
66,829
6
%
2
%
Japan
68,020
68,291
-
1
%
Hong Kong/Taiwan
38,529
37,161
4
%
-
Nu Skin other
755
(85
)
988
%
988
%
Total Nu Skin
655,686
574,138
14
%
8
%
Rhyz Investments
Manufacturing
48,140
37,918
27
%
27
%
Grow Tech
191
310
(38
)%
(38
)%
Rhyz other
38
-
Total Rhyz Investments
48,369
38,228
27
%
27
%
Total
$
704,055
$
612,366
15
%
9
%

The following table sets forth revenue for the six-month periods ended June 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):

Six Months Ended
June 30,
Constant-
Currency
2021
2020
Change
Change
Nu Skin
Mainland China
$
303,775
$
284,028
7
%
(2
)%
Americas/Pacific
301,195
202,492
49
%
45
%
South Korea
169,735
152,634
11
%
3
%
EMEA
159,295
86,179
85
%
69
%
Southeast Asia
138,336
136,415
1
%
(2
)%
Japan
137,884
129,591
6
%
6
%
Hong Kong/Taiwan
74,874
72,988
3
%
(1
)%
Nu Skin other
1,460
688
112
%
112
%
Total Nu Skin
1,286,554
1,065,015
21
%
15
%
Rhyz Investments
Manufacturing
94,125
65,065
45
%
45
%
Grow Tech
364
314
16
%
16
%
Rhyz other
38
-
Total Rhyz Investments
94,527
65,379
45
%
45
%
Total
$
1,381,081
$
1,130,394
22
%
16
%

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Nu Skin Enterprises Reports Second-quarter 2021 Results
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The company's Customers and Sales Leaders statistics by segment as of June 30, 2021 and 2020 are presented in the following table:

As of
June 30, 2021
As of
June 30, 2020
% Increase (Decrease)
Customers
Sales
Leaders
Customers
Sales
Leaders
Customers
Sales
Leaders
Mainland China
328,526
18,647
321,946
17,104
2
%
9
%
Americas/Pacific
397,685
13,078
424,236
10,787
(6
)%
21
%
South Korea
153,287
7,935
159,926
6,881
(4
)%
15
%
EMEA
261,857
7,900
247,057
5,120
6
%
54
%
Southeast Asia
135,610
7,141
155,822
6,790
(13
)%
5
%
Japan
125,791
6,053
125,332
6,011
-
1
%
Hong Kong/Taiwan
64,861
3,474
65,581
3,343
(1
)%
4
%
Total
1,467,617
64,228
1,499,900
56,036
(2
)%
15
%

'Customers' are persons who purchased products directly from the company during the previous three months. Our Customer numbers do not include consumers who purchase products directly from members of our sales force.

'Sales Leaders' are independent distributors, and sales employees and independent marketers in China, who achieve certain qualification requirements.

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Nu Skin Enterprises Reports Second-quarter 2021 Results
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NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)

Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Revenue
$
704,055
$
612,366
$
1,381,081
$
1,130,394
Cost of sales
171,975
154,110
342,541
279,903
Gross profit
532,080
458,256
1,038,540
850,491
Operating expenses:
Selling expenses
277,893
248,628
551,639
454,670
General and administrative expenses
168,811
151,554
338,612
301,182
Total operating expenses
446,704
400,182
890,251
755,852
Operating income
85,376
58,074
148,289
94,639
Other income (expense), net
(4,012
)
1,581
(2,430
)
(4,593
)
Income before provision for income taxes
81,364
59,655
145,859
90,046
Provision for income taxes
22,026
17,804
39,091
28,465
Net income
$
59,338
$
41,851
$
106,768
$
61,581
Net income per share:
Basic
$
1.18
$
0.81
$
2.12
$
1.15
Diluted
$
1.15
$
0.81
$
2.06
$
1.15
Weighted-average common shares outstanding (000s):
Basic
50,115
51,872
50,409
53,466
Diluted
51,557
51,925
51,850
53,502

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Nu Skin Enterprises Reports Second-quarter 2021 Results
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NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)

June 30,
2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
354,759
$
402,683
Current investments
24,499
21,216
Accounts receivable, net
64,701
63,370
Inventories, net
390,977
314,366
Prepaid expenses and other
126,586
101,563
Total current assets
961,522
903,198
Property and equipment, net
474,167
468,181
Operating lease right-of-use assets
136,738
155,104
Goodwill
215,582
202,979
Other intangible assets, net
98,955
89,532
Other assets
163,016
138,082
Total assets
$
2,049,980
$
1,957,076
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
60,632
$
66,174
Accrued expenses
403,165
446,682
Current portion of long-term debt
152,500
30,000
Total current liabilities
616,297
542,856
Operating lease liabilities
100,826
112,275
Long-term debt
288,343
305,393
Other liabilities
126,688
102,281
Total liabilities
1,132,154
1,062,805
Commitments and contingencies
Stockholders' equity:
Class A common stock - 500 million shares authorized, $0.001 par value, 90.6 million shares issued
91
91
Additional paid-in capital
586,976
579,801
Treasury stock, at cost - 40.4 million and 39.7 million shares
(1,509,867
)
(1,461,593
)
Accumulated other comprehensive loss
(68,553
)
(64,768
)
Retained earnings
1,909,179
1,840,740
Total stockholders' equity
917,826
894,271
Total liabilities and stockholders' equity
$
2,049,980
$
1,957,076

# # #
CONTACTS:
Media: media@nuskin.com, (801) 345-6397
Investors:investorrelations@nuskin.com, (801) 345-3577


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Nu Skin Enterprises Inc. published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 21:59:46 UTC.