Nu Skin Reports Record 1st Quarter Revenues

by louabbott on April 28, 2010

Nu Skin reported their first quarter 2010 results and they were impressive.

If you annualized the revenue numbers for the first quarter, you would project annual sales for 2010 to be about $1.5 Billion!

Since Nu Skin opened for business in 1984, we could draw at least one lesson from this report.  Unlike illegal pyramid schemes, growth in a well run MLM does not have to be short lived! Even their growth in the United States and Canada was positive.

Nu Skin Enterprises, Inc. has announced record first-quarter results, with revenue of $364.1 million, a 23 percent improvement over the prior-year period. Quarterly revenue was positively impacted 8 percent by foreign currency fluctuations. Earnings per share for the quarter were $0.48, a 153 percent improvement, or 71 percent when excluding restructuring charges of approximately $0.09 per share included in the prior-year results.

“We started the year off strong, generating record results while focusing on innovation in our products and processes,” said Truman Hunt, president and chief executive officer. “Our ageLOC skin care system continues to be a significant catalyst by generating tremendous distributor excitement and consumer demand. During the quarter, we continued the global ageLOC rollout, with launches in the United States, Europe and South Korea. To date, the ageLOC product launch has been the most successful in our history, generating more than $80 million in just the first two quarters of product sales. We also supplemented the ageLOC launch by introducing a new and improved ageLOC version of our top-selling Galvanic Spa System.

“We continue to reap the rewards of our multi-year transformation process, demonstrated by our improved operating margin of 12.7 percent in the first quarter. Our consistent efforts to operate more efficiently and innovate in our business processes provide a stable foundation for increasing profitability,” said Hunt.

Regional Results

North Asia. First-quarter revenue in North Asia grew 22 percent to $170.9 million, compared to $139.8 million for the same period in 2009. Revenue was positively impacted 11 percent by foreign currency fluctuations due to the strengthening of both the Japanese yen and the South Korean won. Local-currency revenue increased 67 percent in South Korea due to a very successful launch of the ageLOC(TM) Transformation system, offsetting a 4 percent revenue decline in Japan. The number of executive distributors in the region was up 6 percent while the number of active distributors was even with the prior year.

Americas. First-quarter revenue in the Americas was $62.5 million, compared to $58.4 million for the prior-year period. Revenue in both the United States and Canada improved 8 percent, while the company’s small Latin American business had a constant currency decline of 23 percent due to a drop in sales in Venezuela. The number of executive distributors in the region increased 10 percent compared to the prior year, while the number of active distributors declined 2 percent.

Greater China. Revenue in Greater China improved 22 percent to $57.7 million for the quarter, and was positively impacted 3 percent by foreign currency fluctuations. Local-currency revenue in Mainland China improved 24 percent. Taiwan and Hong Kong revenue improved 17 percent and 12 percent, respectively, compared to the prior year. The executive distributor count in the region increased 20 percent and the number of active distributors improved 9 percent.

Europe. First-quarter revenue in Europe was $37.8 million, a 42 percent improvement over the prior-year period. Results in the region were positively impacted approximately 11 percent by foreign currency fluctuations. Executive and active distributor counts in the region increased 25 percent and 17 percent, respectively, compared to the prior year.

South Asia/Pacific. Revenue in South Asia/Pacific was $35.3 million for the first quarter, a 48 percent improvement over the prior year. Regional results were driven by solid performances in all markets and were positively impacted 16 percent by foreign currency fluctuations. The region’s first-quarter executive count improved 28 percent, while the active distributor count increased 14 percent …

The rest of the article is available here.

Read more on our Nu Skin Facts News, and Reviews page.

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