10.26.11
Nu Skin Enterprises Inc. posted record third-quarter results with revenue of $428 million, a 12 percent improvement over the prior-year period. Revenue benefited eight percent from foreign currency fluctuations. Earnings per share for the quarter were $0.72, a 31 percent year-over-year improvement. An income tax benefit of $7.7 million, offset by $6.2 million of unrealized foreign currency losses, impacted earnings.
"Our strong quarterly results fuel our optimism for the future, particularly as we head into our next ageLOC product launch cycle that begins this month," said Truman Hunt, president and chief executive officer in a press statement. "We are also pleased with 14 percent growth in the number of executive distributors this quarter, as well as with ongoing strength in emerging markets and continued operating margin improvements.
At the beginning of October, the company began taking orders for its latest ageLOC innovations, the R2 nutritional supplement and the Body Galvanic Spa, which is used with two new ageLOC body treatment gels. These products are being offered for a limited time in conjunction with this week's global Nu Skin distributor convention. “Orders have totaled approximately $100 million, well ahead of our expectations, which bodes well for the roll out of these products throughout 2012,” he said.
Regional results varied. Third-quarter revenue in North Asia was $184.3 million, compared to $170.5 million for the same period in 2010. In Greater China revenue for the quarter increased 32 percent to $83.4 million, compared to $63.3 million in the prior-year period, while revenue in South Asia/Pacific was $61.8 million, a 23 percent improvement over the prior year. Revenue in Europe was $39.5 million, an 11 percent improvement over the prior-year period.
However, revenue in the Americas declined seven percent to $59.4 million, compared to $63.7 million in the prior-year period. The US posted a 10 percent decrease during the quarter, while Canada declined 20 percent in local-currency revenue. Latin America constant-currency revenue grew by 58 percent, benefiting from the opening of Argentina earlier this year.
"Our optimism for the future is based upon our innovative ageLOC platform and product pipeline, as well as strong executive and active distributor growth, and the tremendous potential of our emerging markets," said Hunt.
"Our strong quarterly results fuel our optimism for the future, particularly as we head into our next ageLOC product launch cycle that begins this month," said Truman Hunt, president and chief executive officer in a press statement. "We are also pleased with 14 percent growth in the number of executive distributors this quarter, as well as with ongoing strength in emerging markets and continued operating margin improvements.
At the beginning of October, the company began taking orders for its latest ageLOC innovations, the R2 nutritional supplement and the Body Galvanic Spa, which is used with two new ageLOC body treatment gels. These products are being offered for a limited time in conjunction with this week's global Nu Skin distributor convention. “Orders have totaled approximately $100 million, well ahead of our expectations, which bodes well for the roll out of these products throughout 2012,” he said.
Regional results varied. Third-quarter revenue in North Asia was $184.3 million, compared to $170.5 million for the same period in 2010. In Greater China revenue for the quarter increased 32 percent to $83.4 million, compared to $63.3 million in the prior-year period, while revenue in South Asia/Pacific was $61.8 million, a 23 percent improvement over the prior year. Revenue in Europe was $39.5 million, an 11 percent improvement over the prior-year period.
However, revenue in the Americas declined seven percent to $59.4 million, compared to $63.7 million in the prior-year period. The US posted a 10 percent decrease during the quarter, while Canada declined 20 percent in local-currency revenue. Latin America constant-currency revenue grew by 58 percent, benefiting from the opening of Argentina earlier this year.
"Our optimism for the future is based upon our innovative ageLOC platform and product pipeline, as well as strong executive and active distributor growth, and the tremendous potential of our emerging markets," said Hunt.