Nu Skin Q1 2025 slides: Revenue declines 12.7%, outlook remains cautious

Published 09/05/2025, 08:58
Nu Skin Q1 2025 slides: Revenue declines 12.7%, outlook remains cautious

Introduction & Market Context

Nu Skin Enterprises Inc (NYSE:NUS) released its first quarter 2025 presentation on May 8, revealing a 12.7% year-over-year revenue decline despite exceeding analyst expectations. The stock responded positively, jumping 7.13% in after-hours trading to reach $6.16, with extended trading showing an additional 4.22% gain to $6.42. Despite trading well below its 52-week high of $14.00, investors appeared encouraged by the company’s ability to outperform modest forecasts.

Quarterly Performance Highlights

Nu Skin reported Q1 2025 revenue of $364.5 million, down 12.7% from the previous year, with a 3.0% negative foreign exchange impact representing approximately $12.3 million. Despite the revenue decline, the company posted earnings per share of $2.14, or $0.23 excluding the Mavely gain and other charges, compared to a loss of $(0.01) or earnings of $0.09 excluding restructuring charges in the previous year.

As shown in the following overview of Nu Skin’s Q1 2025 performance:

The company’s customer metrics showed mixed results with overall customers down 11% year-over-year and paid affiliates decreasing by 15%. However, sales leaders increased by 20% compared to the same period last year, suggesting potential stabilization in the company’s distribution network despite broader challenges.

Detailed Financial Analysis

Nu Skin’s operational performance metrics revealed both challenges and improvements. Gross margin declined from 70.5% in Q1 2024 to 67.8% in Q1 2025, indicating increased pressure on product costs. However, the company successfully reduced selling expenses from 36.8% to 32.5% year-over-year, demonstrating progress in cost management initiatives.

The following chart illustrates these operational metrics:

General and administrative expenses increased slightly from 29.9% to 31.1%, though the company noted this would be 28.9% excluding certain charges. Operating margin turned negative at -2.7% compared to 2.1% in the prior year, highlighting ongoing profitability challenges despite the company’s cost-cutting efforts.

Regional Performance

Nu Skin’s revenue declined across all geographic segments, with the most significant percentage decreases in Mainland China (-22%), South Korea (-21%), and Europe & Africa (-22%). The Americas segment, representing 19% of total revenue, showed the most resilience with an 8% decline.

The following chart breaks down revenue by segment:

Customer numbers followed similar trends, with significant declines in most regions. South Korea experienced the steepest customer drop at 28%, followed by Mainland China at 25%. Japan showed remarkable stability with only a 1% customer decline, while the Americas actually grew its customer base by 14%, representing a bright spot in an otherwise challenging quarter.

This regional breakdown of customers illustrates these trends:

The company’s paid affiliates declined across all regions, with Southeast Asia/Pacific showing the largest drop at 25%, followed by South Korea at 20% and Mainland China at 19%. Sales leaders also decreased in all regions, with Mainland China (-35%), South Korea (-31%), and Europe & Africa (-24%) experiencing the most significant reductions.

The following chart shows the paid affiliate performance by region:

And this chart illustrates sales leader performance by region:

Forward-Looking Statements

Nu Skin provided guidance for both Q2 2025 and the full year, projecting continued revenue challenges but maintaining a cautiously optimistic outlook. For Q2, the company expects revenue between $355 and $390 million, representing a decrease of 19% to 11% year-over-year, with EPS projected between $0.20 and $0.30.

The following chart outlines Nu Skin’s outlook for Q2 and full-year 2025:

For the full year 2025, Nu Skin forecasts revenue between $1.48 and $1.62 billion, a decrease of 15% to 6% compared to 2024. EPS is expected to range from $2.80 to $3.20, or $0.90 to $1.30 excluding the Mavely gain and other charges.

According to the earnings call transcript, CEO Ryan Napierski emphasized the company’s resilience and innovation despite challenges, highlighting the upcoming launch of the Prism IO wellness platform and expansion into the Indian market as potential growth catalysts. The company also reported reducing its outstanding debt to $239 million, the lowest level in over a decade, strengthening its financial position amid ongoing transformation efforts.

While Nu Skin faces continued headwinds from macroeconomic pressures and declining metrics across most regions, its ability to exceed analyst expectations and implement cost-saving measures has provided some confidence to investors as the company navigates its challenging transformation journey.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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