Nu Skin Enterprises, Inc. (NYSE: NUS) has not been in its best shape lately, with its shares down 27.7% in the past three months compared with the industry's 21.3% decline. Additionally, this beauty and wellness product company has trailed the broader Zacks Consumer Staples sector and the S&P 500's respective growth of 1.2% and 4.2%.
Despite being a prominent player in the beauty and wellness industry, Nu Skin has struggled to navigate a series of macroeconomic headwinds that have dampened consumer spending, particularly on premium products. Additionally, the company has been severely impacted by stronger-than-expected foreign currency fluctuations and ongoing pressures within the direct selling industry, contributing to a disappointing second-quarter 2024 performance.
Considering the company's first-half 2024 performance and rising foreign exchange headwinds, management tightened the annual guidance range for 2024 in its second-quarter earnings release.
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Macroeconomic Hurdles Persist
Nu Skin has been encountering persistent macroeconomic obstacles, which continued in the second quarter of 2024. The company's performance was hurt by continuous macroeconomic headwinds across most regions, which weighed on consumer spending and customer acquisition, especially for premium products. Additionally, NUS grappled with pressures in the direct selling industry.
These headwinds, along with foreign adverse currency fluctuations, hurt Nu Skin's quarterly revenues, which tumbled 12.2% year over year to $439.1 million in the second quarter. On a constant-currency basis, revenues fell 8%. Sales leaders were down 16% year over year to 38,592. Nu Skin's customer base dropped 14% ...
