Nu Skin Enterprises: EPS Misses Expectations in 2024, but Strategic Priorities Offer Hope for 2025

Nu Skin Enterprises (NUS) reported its full-year 2024 earnings on February 13, 2025, with adjusted EPS of $0.38, missing the Zacks Consensus Estimate of $0.24. The company's EPS for the year was also lower than the adjusted EPS of $0.37 in the prior year. Despite the miss, Nu Skin's core earnings performance improved year over year, and the company's gross margin and operating margin showed improvement compared to the prior year.



Nu Skin's revenue performance in 2024 compared to the previous year showed a decline of 12.0%, with revenues reaching $1.73 billion. This decrease was partially offset by Rhyz revenue, which increased by 32.3% to $286.6 million. The company's fourth quarter revenue was $445.6 million, down 8.8% from the fourth quarter of 2023. This decline was also partially offset by Rhyz revenue, which increased by 27.7% to $83.1 million.

Geographically, the company experienced persistent headwinds in China and South Korea, but growth was encouraging in Latin America and parts of Southeast Asia. This demonstrates the company's developing market strategy is gaining traction. In the Americas, the company delivered constant currency growth, while in and paid down debt of $440 million.

The company's Q4 results were driven in part by the launch of its new AgeLock TrueFase peptide retinol complex and the performance of RISE. The AgeLock TrueFase peptide retinol complex is an innovative product that leverages AI-discovered peptide technology to deliver retinol in a unique way, combining two types of retinoids for a powerful result in a gentle formula. This product has demonstrated strong market acceptance, reinforcing the company's ability to meet evolving consumer demands in the premium beauty space while maintaining its commitment to innovative formulations.

Arrive segments achieved 28% year-on-year growth in Q4, contributing significantly to the overall revenue trend. The strategic transaction of Mavely for $250 million also strengthened the company's balance sheet and provided further validation of its RISE ecosystem strategy. Through its ongoing commercial relationship with Later, the company will maintain access to Mavely's technology and social commerce capabilities to support its affiliate marketing business.



Looking ahead to 2025, Nu Skin has three strategic priorities:

1. Strengthen its Core Nu Skin Business: Nu Skin plans to focus on improving its core business by driving sequential growth and accelerating growth in developing markets like Latin America. This priority directly addresses the decline in customer base and paid affiliates by focusing on customer acquisition and retention.
2. Accelerate Innovation of its IO, Intelligent Beauty and Wellness Platform: Nu Skin aims to innovate and improve its products and services to better meet evolving consumer demands. This priority aligns with the company's efforts to address economic challenges and poor consumer sentiment by offering more appealing and relevant products.
3. Improve Operational Performance and Efficiency: Nu Skin seeks to improve its operational performance and efficiency to better navigate economic challenges and maintain profitability. This priority is directly related to addressing the negative foreign currency impact and improving overall earnings.

By focusing on these strategic priorities, Nu Skin aims to overcome the challenges it faced in 2024 and improve its earnings performance in 2025. The company's long-term vision is to become the world's leading beauty, wellness, and lifestyle ecosystem, and its strategic priorities are designed to help it achieve this goal.