Nu Skin continues to outperform many of its network-marketing counterparts as its patented anti-aging technology branded as age-LOC helped drive 8% revenue growth during the third quarter of 2009. All five of its global regions reported expansion in Q3 compared to the same period in 2008, with total combined sales of $334.2 million—a new record for the company. The company’s Asian businesses, which include strong distribution bases in China and Japan, accounted for more than 70% of total sales.
One of the keys to success for the billion dollar company has been the ability to successfully differentiate its anti-aging personal care products from its competitors. Its latest product offerings have helped Nu Skin achieve double-digit sales growth in South Korea, Southeast Asia, Europe, Taiwan, Mainland China, and Latin America. The company is also very reliant upon favorable currency exchange rates, which worked in Nu Skin’s favor during the third quarter.
With all of its success in the personal care markets, the company now appears poised to enter the “beauty from within” category with nutritional offerings, according to a prepared statement by CEO Truman Hunt. No details were released regarding the nutritional launch, though it would likely sell the products under its Pharmanex branded supplement line.
All of these factors have the company feeling confident about its future. "We increased our 2009 guidance based upon our successful third quarter and the momentum we're generating in our business," said Ritch Wood, chief financial officer. Nu Skin is now anticipating full year 2009 revenues to be in the $1.29 to $1.30 billion range with earnings guidance of $1.25 to $1.27 per share.
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