Nu Skin Enterprises (NUS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $430.1 million, down 13.8%–14% year-over-year, with a 3.4% negative FX impact; Rhyz segments grew 20.9%–21%, partially offsetting core business declines.

• EPS for Q3 was $0.17, compared to $(0.74) in Q3 2023, or $0.56 excluding inventory write-off; net income turned positive at $8.3 million.

• Customer, paid affiliate, and sales leader counts declined 15%, 20%, and 19% year-over-year, reflecting macroeconomic and transformation headwinds.

• Strategic focus is on operational efficiency, cost reduction, and evolving the business model toward an integrated beauty, wellness, and lifestyle ecosystem.

• Cost-efficiency initiatives yielded $15 million in G&A savings in Q3, with $31.4 million cash from operations and $43 million inventory reduction year-over-year.

Financial highlights

• Gross margin improved to 70.1% from 58.6% (or 71.8% excluding inventory write-off); core business gross margin was 76.5%.

• Operating margin was 4.2%, up from (5.3)% prior year; adjusted operating margin was 7.9%.

• Net income was $8.3 million, up from a loss of $37.0 million in Q3 2023.

• Operating cash flow was $31.4 million in Q3; cash and equivalents stood at $227.8–$237.8 million at quarter-end.

• Debt reduced by $25 million in Q3; $3 million in dividends paid; no share repurchases, with $162.4 million remaining authorized.

Outlook and guidance

• Full-year 2024 revenue expected at $1.70–$1.73 billion, down 12–14% year-over-year, with a 3–4% FX impact.

• Full-year 2024 EPS guidance is $(2.32) to $(2.22) GAAP, or $0.65–$0.75 non-GAAP.

• Q4 2024 revenue projected at $410–$445 million, down 9–16% year-over-year, with adjusted EPS of $0.19–$0.29, excluding a $15–$20 million restructuring charge.

• Cost savings target for 2024 remains at the high end of $45–$65 million.

• Capital expenditures for 2024 estimated at $35–$55 million, focused on plant expansion, technology, and facility upgrades.