Nu Skin Enterprises, Inc. (NYSE:NUS) released its latest earnings report before opening bell this morning, posting earnings of $1.13 per share, excluding items, on revenue of $650 million. Analysts had been expecting the multi-level marketing company to report earnings per share of $1.27 on $709.03 million in revenue.
This morning Nu Skin said revenue fell 3% year over year due to a negative 2% impact from foreign exchange rates. Reported earnings were 32 cents per share, compared to $1.22 in the same quarter a year ago. The company took a $50 million write-down of inventory in Mainland China and also a $25 million charge as it transitioned to the SICAD II exchange rate in Venezuela.
Breaking down Nu Skin's earnings results
Nu Skin management said the company performed within their expectations except in China. However, they added that there are signs that business there is stabilizing since accepting new applications for sales leaders in May. The company had stopped taking them for three months. Management also reported that they had expanded Nu Skin's selling market in China to include Wenzhou, where the company secured a new direct selling license.
The company reported that second quarter revenue in Greater China fell 12% to $229.9 million. In North Asia, revenue rose 1% to $196 million, while in the Americas, revenue climbed 8% to $89.9 million. Nu Skin saw a 5% decline in revenue from it South Asia and Pacific region, which fell to $81.7 million. Revenue from Europe, the Middle East and Africa rose 14% year over year to $52.6 million.
Nu Skin provides guidance
In the third quarter, management projects revenue of between $620 million and $640 million. They expect earnings per share to be between 90 cents and 95 cents. For the fourth quarter, they project revenue of between $650 million and $675 million and earnings of $1 to $1.05 per share.
"We will continue to innovate in the dynamic anti-aging product category to drive growth in consumer demand as well as interest in Nu Skin's business opportunity," said Nu Skin President and CEO Truman Hunt in a statement. "We are encouraged with our product development pipeline with important new offerings in both skin care and nutrition next year, which we believe will lead to renewed global growth in 2015 and drive enhanced value for our shareholders."