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Nu Skin Enterprises Made Changes in Its Management

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Dec. 8 2016, Published 1:59 p.m. ET

Price movement

Nu Skin Enterprises (NUS) has a market cap of $2.6 billion. It fell 7.2% to close at $47.85 per share on December 7, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -8.3%, -11.1%, and 30.7%, respectively, on the same day.

NUS is trading 9.6% below its 20-day moving average, 18.4% below its 50-day moving average, and 0.89% below its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap ETF (VB) invests 0.09% of its holdings in NUS. The YTD price movement of VB was 19.7% on December 7.

The market caps of NUS’s competitors are as follows:

  • Illumina (ILMN): $17.9 billion
  • Herbalife (HLF): $4.6 billion
  • Avon Products (AVP): $2.4 billion

Latest news on NUS

Ritch Wood has been appointed Nu Skin Enterprises’ chief executive officer. Wood will take the position after the departure of Truman Hunt, the company’s current president and chief executive officer. Hunt has signed a three-year leadership assignment for the Church of Jesus Christ of Latter-day Saints beginning in mid-2017.

Ryan Napierski has been appointed the company’s president.

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Performance of Nu Skin Enterprises in 3Q16

Nu Skin Enterprises (NUS) reported 3Q16 revenue of $604.2 million, a rise of 5.8% compared to $571.3 million in 3Q15. Sales for Greater China, North Asia, the Americas, and EMEA (Europe, the Middle East, and Africa) rose 14.7%, 24.4%, 0.71%, and 4.5%, respectively. Sales for South Asia–Pacific fell 34.9% in 3Q16 compared to 3Q15.

The company’s gross profit margin and operating margin rose 590 basis points and 620 basis points, respectively, in 3Q16 compared to 2Q16. The change in gross margin and operating margin resulted from the impact of China’s inventory charge.

Nu Skin Enterprises’ net income and EPS (earnings per share) rose to $56.9 million and $0.98, respectively, in 3Q16 compared to $16.3 million and $0.28, respectively, in 3Q15.

NUS’s cash and cash equivalents rose 78.6%, and its inventories fell 4.5% in 3Q16 compared to 4Q15.

Projections

Nu Skin Enterprises (NUS) has made the following projections:

  • revenue of $550.0 million–$570.0 million for 4Q16, which assumes a negative currency impact of 0.0%–2.0%
  • EPS of $0.77–$0.81 for 4Q16
  • revenue of $2.2 billion–$2.3 billion, which includes a negative foreign currency impact of ~2.0% for fiscal 2016

Next, we’ll take a look at Lululemon Athletica (LULU).

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