Nu Skin (NUS) Surprises With Q4 Sales, Stock Jumps 22.3%

Nu Skin Enterprises Inc. (NYSE: NUS) reported fourth quarter and full-year 2024 results above its latest revenue guidance, surprising investors and driving a 22.3% increase in the company's stock price. The company's Q4 revenue was $445.6 million, which beat the high end of its guidance range and showed sequential revenue growth. This positive surprise was driven by several factors, including the completion of the company's restructuring plan, the growth of its Rhyz segment, and the upcoming launch of Prysm iO™, an exclusive intelligent wellness device.

Nu Skin's Q4 year-over-year operating results showed a revenue of $445.6 million compared to $488.6 million in the prior-year quarter, with an 8.8% decrease and a 4.1% foreign exchange (FX) impact or $(20.1) million. The company's Rhyz revenue was $83.1 million, representing a 27.7% increase year-over-year. Nu Skin's adjusted earnings per share (EPS) excluding restructuring and other charges was $0.38, compared to $0.37 in the prior-year quarter.

The company's CEO, Ryan Napierski, attributed the strong performance to the completion of the company's restructuring plan, which helped the company exceed its adjusted earnings expectations. He also highlighted the growth of the Rhyz segment and the upcoming launch of Prysm iO™, an exclusive intelligent wellness device that will provide consumers with nutritional insights. The company anticipates that this breakthrough technology will infuse energy and future growth for the nutrition side of the business.

Nu Skin's strategic transaction of Mavely for $250 million also contributed to the company's strong performance. The sale of Mavely, a leading Everyday Influencer marketing platform, generated a substantial return on investment, achieving a 5x ROI since 2021. This transaction not only provided Nu Skin with a significant cash influx but also demonstrated the potential for Rhyz to incubate and scale meaningful businesses.

The company's Q1 and full-year 2025 outlook projects revenue of $345 to $365 million for Q1 2025, with an approximate 3% foreign currency headwind. Nu Skin anticipates reported EPS of $2.65 to $2.75 or $0.10 to $0.20, excluding the gain from the Mavely transaction. For the full year 2025, the company projects revenue of $1.48 to $1.62 billion, with an approximate 3% foreign currency headwind, and reported EPS of $3.45 to $3.85 or $0.90 to $1.30, excluding the gain from the Mavely transaction.

Nu Skin's strong Q4 sales performance and the subsequent stock price increase reflect the company's ability to execute its strategic plans, improve operational efficiencies, and deliver strong cash flow. The company's focus on strengthening its core Nu Skin business, accelerating growth in developing markets, and investing in new technologies and products positions it well for future growth. As Nu Skin continues to execute its strategy and drive earnings growth, investors can expect the company to maintain its competitive edge in the beauty and wellness industry.