Sales: $1.6 billion. Corporate sales: $3.1 billion. Net income: $364
Key Personnel: Steven J. Lund, chairman, Nu Skin Enterprises;
Truman Hunt, president and chief executive officer, Nu Skin
Enterprises; Joseph Y. Chang, chief scientific officer and executive vice president, product development; Daniel R. Chard, president, global sales and operation; Scott E. Schwerdt, president, Nu
Skin Americas Region; Ritch N. Wood, chief financial officer; D.
Matthew Dorny, vice president, general counsel and secretary.
Major Products: AgeLOC, Tru Face and Epoch anti-aging and
personal care products.
New Products: AgeLOC TR90 weight management and body
shaping system. To be launched: Facial Spa Device.
Comments: Sometimes, everything works out. That’s what hap-
pened for Nu Skin during the past year, as regulatory troubles
in China, its biggest market, threatened to derail the company’s
long-time success story. Earlier this year, Nu Skin China volun-
tarily suspended operations to cooperate with authorities after an
article in the People’s Daily accused the company of operating a
“suspected pyramid scheme.”
As a result of the article, Nu Skin’s stock price plunged, and
Wall Street watchers speculated about the company’s long-term
viability. But after an investigation, Nu Skin agreed to pay a fine
and got back to business on May 1.
With the Chinese controversy behind it, Nu Skin is ready to soar.
The company’s first quarter 2014 sales jumped 24% to $671 million.
“We are pleased to report record first-quarter results, generating year-over-year growth in all five of our regions,” said
Truman Hunt, president and chief executive officer. “Our results
are particularly encouraging given the business disruption we experienced in China during the first quarter, as well as currency
headwinds we faced in many markets. With respect to China,
our team took aggressive, proactive steps to address media and
regulatory concerns in a timely manner. While these first-quarter
events in China will have a negative impact on 2014 results, we
are now focused on generating sustainable, long-term growth.”
By region, Greater China’s first-quarter revenue increased
63% to $278.9 million. The sales leader count in the region improved 41%, while the number of active reps increased 17% compared to the prior year. Revenue in North Asia increased 5% to
$195.5 million. South Korea generated local-currency revenue
growth of 38% while Japan local-currency revenue declined
14%. The number of sales leaders in the region was up 7% and
the number of actives improved 11%. Revenue in the Americas
improved 6% to $79.9 million. The number of sales leaders in the
region improved 17% and the number of actives improved 10%
compared to the prior year. Revenue in South Asia/Pacific in-
creased 6% to $71.2 million. The region’s first-quarter sales lead-
ers improved 27% while actives increased 17% compared to the
same period in 2013. Revenues in Europe, Middle East and Africa
rose 9% to $45.6 million. Sales leaders and actives increased 5%
and 3%, respectively.
Great stuff, especially coming off a banner 2013. Last year,
sales jumped 49% to more than $3.1 billion. As in prior years,
Greater China led the way, with sales more than doubling to over
$1.3 billion. Still, every region reported an increase in sales. North
Asia rose nearly 11% to $869 million; South Asia/Pacific rose 15%
to nearly $379 million; Americas jumped nearly 30% to $370 million and Europe improved nearly 7% to $195 million.
To keep growing in Asia, in April Nu Skin opened an Innovation
Park in Shanghai that serves as the regional headquarters for the
Greater China region. The site includes a world-class anti-aging
research and development laboratories, as well as manufacturing
facilities, modern meeting spaces and green areas. It is located
in the heart of Shanghai’s Fengxian District on 9. 4 acres and en-compasses more than 365,000 square feet. The Innovation Park
features three buildings: a headquarters that houses employees,
a product development production and distribution center, and a
vision hall that includes a 230-seat auditorium.
While so much news about Nu Skin revolves around China
and the rest of Asia, the company continues to expand in its home
base in Utah. In October, Nu Skin opened its new Innovation
Center and expanded US headquarters. The company has invest-
ed more than $100 million in the new corporate facilities.
The expanded US headquarters campus includes more than
300,000 total square feet that features five research laboratories,
a state-of-the-art data center, environmentally friendly design,
and modern office and meeting spaces. At the heart is Nu Skin’s
Center for Anti-aging Research, which will be the company’s
global center for innovation and scientific discovery. The new
research facilities will be instrumental in the development and
evaluation of Nu Skin products.
“These new facilities reflect our investment in our future and
our commitment to advancing Nu Skin’s long-term growth potential,” said Ritch Wood, chief financial officer.“We continue to foster
a culture of innovation, providing a steady stream of state-of-the-art anti-aging solutions and a continually attractive business opportunity for our sales leaders. These new facilities also reflect the
hard work and dedication of the entire Nu Skin family and our
vision to become the leading direct selling company in the world.”
Last month, Nu Skin CEO Truman Hunt was elected chairman of the US Direct Selling Association.
16.NU SKIN ENTERPRISES