NUS - Nu Skin stock drops 18% on dimmed outlook as macro headwinds continue to impact results

Nu Skin ( NYSE: NUS ) stock tumbled 18.4% to an over two-year low on Thursday after the beauty and wellness firm lowered its 2022 guidance to reflect macroeconomic headwinds.

The company also reported weak Q3 results, hurt by COVID-related disruptions in China, slowdown in South Korea, high inflation and forex pressure.

Nu Skin ( NUS ) expects 2022 adj. EPS of $2.40-$2.60 vs. earlier guidance of $3.30-$3.60. 2022 revenue is projected to be $2.20B-$2.25B vs. prior outlook of $2.33B-$2.41B, with ~5-7% forex headwind.

Nu Skin ( NUS ) expects Q4 revenue of $500M-$550M, assuming negative forex impact of ~8-10%, and adj. EPS of $0.40 to $0.60.

"With more challenging macro conditions expected over the near to mid-term, we are pursuing a more aggressive tactical approach to restructuring to better align capabilities, resources and operational efficiencies," said CEO Ryan Napierski.

As part of the restructuring, the firm incurred a $30.1M charge in Q3 and expect an additional $5M-$10M in Q4, with ~$3M-$5M in Q1 2023.

Nu Skin ( NUS ) also narrowed its product portfolio, resulting in an incremental $26.9M write-off in Q3.

Shares of Nu Skin ( NUS ) declined 41% YTD.

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