Nu Skin Enterprises, Inc. has just announced that it had decided to revise its revenue guidance for the third quarter due to foreign currency headwinds and a less than great sales results in China. This forced the company to bring down the forecasted third quarter revenue to a range of $570 to $573 million. Previously, the expected revenue for the said quarter was between $600 and $620 million.
According to Market Watch, Nu Skin stocks took a tumble soon after the release of the revised revenue forecast. In fact, it went down by as much as 14% during the after-hours session. Now, Nu Skin’s stock is up slightly by 1.57% with a price of $46.57.
Nu Skin reports that its third quarter revenue for the year had been negatively impacted by foreign currency headwinds by more than $60 million when compared to the previous year. To make things worse, sales for the company’s new cosmetic oils in China failed to meet expectations, which could reflect the poor economic conditions in the country. Nonetheless, Nu Skin managed to achieve good revenue growth in the South Asia/Pacific region, especially due to the launch of its product, ageLOC Youth line. The said product line actually delivered a 20% increase in revenue alone.
During the second quarter, Nu Skin reported a total quarterly revenue of $560.2 million. This reflected a decline of 14% when compared to the second revenue of the previous year due to foreign currency headwinds. Nonetheless, Nu Skin President and Chief Executive Officer Truman Hunt had said that he was “pleased the business performed at the high end of our expectations for the second quarter.”
Nu Skin plans to release its third quarter results on November 5.