Nu Skin Shares Plunge as Revenue Slide Overshadows Return to Profit

Shares of the beauty and wellness firm fell 17% to $8.45 in Friday morning trading, extending a broader downward trend that has seen the stock lose 27% of its value over the last six months. The sell-off follows a quarterly report that highlighted persistent struggles in consumer demand, even as the company improved its bottom-line performance.

According to the financial results, Nu Skin posted a profit of $14.5 million, or 29 cents per share, marking a sharp pivot from the $36.1 million loss reported in the same period last year. However, this recovery was offset by a significant contraction in sales; revenue fell nearly 17% to $370.3 million, down from $445.6 million a year earlier.

Weak Guidance Weighs on Investor Sentiment

The company’s outlook for the current quarter suggests the revenue slump is not yet over. Nu Skin projects first-quarter revenue to fall between $320 million and $340 million, representing a potential decline of up to 12% compared to the previous year. Earnings for the same period are expected to land between 10 cents and 20 cents per share.

For the full year, management provided a range for performance that failed to reassure the market:

• Total revenue is projected between $1.35 billion and $1.5 billion.
• Full-year earnings are anticipated to fall between 80 cents and $1.20 per share.
• Year-over-year revenue performance is expected to range from a 9% decline to a 1% improvement.

Nu Skin’s struggle to stabilize its top line comes as the beauty and wellness sector faces shifting consumer spending patterns and intense competition in global markets.