In advance of its annual investor day to be held today, Nu Skin Enterprises, Inc., increases fourth quarter and 2009 revenue and earnings per share guidance, and announces guidance for 2010.
Nu Skin now projects fourth quarter revenue to be in the $360 to $365 million range, up from $343 to $348 million. The company is also increasing earnings per share guidance to be in the $0.37 to $0.39 range, including a planned $0.01 restructuring charge, up from $0.32 to $0.34.
"We are raising our guidance primarily due to a very successful prelaunch of our flagship ageLOC skin care system at our global distributor convention, as well as our anticipation that Japan will continue to see a small trend improvement in the fourth quarter," said Truman Hunt, Nu Skin president and chief executive officer. "Also, we expect a weaker dollar will benefit our results slightly more than we had anticipated. We look forward to providing more detail relating to the improving results of our business in our meeting with shareholders today."
"Based on the momentum we're generating in our business, we now expect annual revenue to be $1.313 to $1.318 billion," said Ritch Wood, Nu Skin chief financial officer. "Earnings per share for 2009 should be $1.30 to $1.32, including restructuring charges of approximately $0.13."
The company also announces 2010 annual revenue expectations of $1.37 to $1.4 billion with earnings per share of $1.60 to $1.70.
The annual investor day presentation will be held today at 9 a.m. at the Waldorf Astoria hotel in New York City. A webcast of the event, including the financial information to be presented, will be available at http://ir.nuskin.com. A replay of the webcast, along with accompanying slides, will be made available from the same location through Dec. 31.
For 25 years, Nu Skin Enterprises, Inc. has been demonstrating its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. Nu Skin's scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its unique ageLOC(TM) science that addresses aging at its source. The company's anti-aging product portfolio features the new ageLOC daily skin care system and Future Serum, as well as the Galvanic Spa(R) System II, Tru Face(R) Essence Ultra, LifePak(R) Nano and the g3 nutrition beverage. A global direct selling company, Nu Skin operates in 48 markets worldwide and has more than 750,000 independent sales representatives. Nu Skin is traded on the New York Stock Exchange under the symbol "NUS." More information is available at http://www.nuskin.com.
Please note: This press release, contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the company's current expectations and beliefs, including, among other things: (i) management's projections for 2009, including fourth quarter projections, and for 2010; (ii) management's expectations regarding the company's ageLOC(TM) skin-care product line; (iii) management's anticipation regarding Japan; and (iv) management's expectations regarding the impact of currency fluctuations. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to: (a) challenging economic conditions globally; (b) any prospective or retrospective increases in duties on the company's products imported into its markets outside of the United States and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; (c) the recent fluctuations of numerous foreign currencies and the associated currency translation impact on the company's business if these currencies continue to fluctuate; (d) uncertainty regarding the impact on the company's business of increased regulatory scrutiny of the direct selling industry in Japan and the company's efforts to increase distributor compliance efforts in this market; (e) an increase in complaints to consumer protection agencies in Japan regarding the activities of some distributors and the associated risks to the company's business if such increase results in further regulatory scrutiny; (f) regulatory risks associated with the company's tools and products, which could inhibit the company's ability to market a tool or product in a market if it is determined to be a medical device in any market, if distributors make unauthorized claims that would cause such products to be classified as drugs, or if the company is unable to obtain necessary product registrations in a timely manner; (g) risks related to the recent swine flu outbreak, which could negatively impact the company's business to the extent that it inhibits travel, causes people to avoid interaction with other people, or restricts the company's ability to produce or distribute any of its porcine-sourced gelatin encapsulated products; (h) continued regulatory scrutiny and investigations in Mainland China, which have from time to time in the past, and could in the future, negatively impact the company's business, including the interruption of sales activities in stores, loss of licenses, and the imposition of fines; (i) any failure of current or planned initiatives or products to generate interest among distributors and customers and generate sponsoring and selling activities on a sustained basis; (j) any unanticipated negative response from distributors regarding distributor compensation plan enhancements recently implemented in most of the company's markets; (k) any failure of the implementation of business transformation initiatives to reduce overhead and drive growth, and any negative impact of such initiatives on the company's ability to effectively manage its operations; (l) adverse publicity related to the company's business, products, industry or any legal actions or complaints by distributors or others similar to claims made against some of the company's competitors; and (m) continued competitive pressures in the company's markets. The company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K filed on February 27, 2009 and Quarterly Reports on Form 10-Q filed on May 8, 2009, August 7, 2009 and November 9, 2009. The forward-looking statements set forth the company's beliefs as of the date of this release, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.