Nu Skin Enterprises (NUS) Q4 2023 earnings summary

Executive summary

• Q4 and FY 2023 results came in slightly above latest guidance; persistent macro pressure and business-transformation disruption weighed on performance.

• FY revenue declined 12% to $1.969B; Rhyz revenue grew 41% to $216.6M, or 11% of FY revenue.

• Q4 customers fell 15%, paid affiliates fell 30% (13% excluding changed eligibility requirements), and sales leaders fell 10% YoY.

Financial highlights

• Q4 revenue was $488.6M, down 6% YoY; FY revenue was $1.969B, down 12%. FX reduced Q4 revenue by $7.2M and FY revenue by $60.4M.

• Q4 net income was $7.3M vs. $57.2M; diluted EPS was $0.15 vs. $1.15, and adjusted EPS was $0.37 vs. $0.89.

• FY net income was $8.6M vs. $104.8M; diluted EPS was $0.17 vs. $2.07, and adjusted EPS was $1.85 vs. $2.90.

• Q4 operating income was $16.1M vs. $27.5M; FY operating income was $48.3M vs. $110.8M.

Outlook and guidance

• FY 2024 revenue guidance: $1.73B–$1.87B, down 12%–5%, with an estimated 1% FX headwind; EPS guidance is $0.75–$1.15 reported or $0.95–$1.35 excluding restructuring charges.

• Q1 2024 revenue guidance: $400M–$435M, down 17%–10%, with an estimated 2%–3% FX headwind; EPS guidance is $(0.07)–$0.03 reported or $0.00–$0.10 excluding restructuring charges.

• Guidance assumes a challenging near-term global macro environment improving through 2024 and a higher effective tax rate, primarily from expected geographic earnings mix.