NUS - Nu Skin stock dips as Q4 revenue falls amid macro forex headwinds; provides outlook

Nu Skin Enterprises ( NYSE: NUS ) stock fell ~6% on Thursday after mixed Q4 results.

Adjusted EPS declined -19.8% Y/Y to $0.89, but surpassed analysts expectations. Revenue declined -22.4% Y/Y to $522.34M, and missed estimates.

"We made steady progress toward our Nu Vision 2025 strategy, despite persistent macro-economic challenges, which primarily included COVID-related disruptions in Mainland China, global inflation and foreign currency headwinds," said Nu Skin President and CEO Ryan Napierski.

"While we saw our sales channel contract primarily due to macroeconomic factors, we drove annual revenue growth of 4 percent in the U.S. and 2 percent in Southeast Asia/Pacific. Japan and Hong Kong/Taiwan also grew in constant currency, while reported revenue was down due to FX headwinds," Napierski added.

Q4 revenues in Americas declined -10.4% Y/Y to $128.92M, while Mainland China revenue fell -43% Y/Y to ~$73.94M. Southeast Asia/Pacific revenue decreased -15% Y/Y to $76.61M, and revenue from South Korea declined -35% Y/Y to ~$60.03M.

Gross margin was 71.7% compared to 74.2% or 75.2% excluding restructuring and impairment charges in Q4 2021.

Outlook :

"Our initial 2023 guidance assumes the global macro environment remains challenging in the near-term, improving throughout the year," said CFO Mark Lawrence.

Q1 : Nu Skin expects Q1 revenue to be between $450M and $490M ( consensus $476.05M). Non-GAAP EPS is expected in the range of $0.25 to $0.35 (consensus from 1 analyst $0.68).

Full year 2023 : Nu Skin anticipates 2023 revenue to be between $2.03B and $2.18B ( consensus $2.09B). Meanwhile, non-GAAP EPS expected in the range of $2.35 to $2.75 (consensus $2.57).

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