Exhibit 99.1

 

FOR IMMEDIATE RELEASE

NU SKIN ENTERPRISES REPORTS FOURTH-QUARTER REVENUE GROWTH OF 28 PERCENT AND EPS GROWTH OF 94 PERCENT

Company provides strong initial 2021 outlook

PROVO, Utah — Feb. 10, 2021 — Nu Skin Enterprises, Inc. (NYSE: NUS) today announced fourth-quarter 2020 results, achieving 28 percent revenue growth and 94 percent earnings per share (EPS) growth. For the full year, revenue increased seven percent and EPS increased 17 percent. In addition, the company is projecting five to nine percent revenue growth and EPS of $3.80 to $4.10 in 2021.

Executive Summary
Q4 2020 vs. Prior-year Quarter

Revenue:
$748.2 million; +28%
     +4% fx impact
Earnings Per Share (EPS):
$1.40; +94%
Sales Leaders:
70,435; +29%
Customers:
1,557,302; +34%

2020 Annual vs. 2019

Revenue:
$2.58 billion; +7%
     Less than (1%) fx impact
Earnings Per Share (EPS):
$3.63; +17%

“Our strong fourth-quarter results were driven by exceptional customer growth of 34 percent compared to the prior year,” said Ritch Wood, chief executive officer. “We grew revenue in each of our reporting segments with particular strength in the West markets where our brand affiliates have more broadly adopted social commerce to share our products. The successful Boost and Nutricentials product introductions helped generate 28 percent revenue and 29 percent sales leader growth in the quarter. In addition, our manufacturing segment continued to generate strong results, posting 42 percent revenue growth in the quarter and playing a critical role in our ability to keep product in stock, even with increased demand and global supply chain constraints.


Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 2
“I am proud of the work and execution of our entire team, especially our global sales force, as we grew both revenue and earnings amidst the uncertainty of the pandemic. We strengthened our balance sheet, repurchased more than five million shares of stock, innovated in our product pipeline, enhanced our digital capabilities and established a path for double-digit earnings growth going forward,” concluded Wood.

Q4 2020 Year-over-year Operating Results

Revenue:
$748.2 million compared to $583.4 million
     +4% fx impact
Gross Margin:
74.0% compared to 75.9%
     Nu Skin business was 76.5% compared to 78.5%
     Impacted by increased freight charges and geographic mix
Selling Expenses:
38.0% compared to 39.1%
     Nu Skin business was 40.3% compared to 41.3%
G&A Expenses:
24.1% compared to 27.4%
Operating Margin:
11.9% compared to 9.4%
Other Income / (Expense):
$2.7 million compared to ($1.1) million
Income Tax Rate:
19.6% compared to 25.1%
     Benefited by geographic mix
EPS:
$1.40 compared to $0.72

Stockholder Value

Dividend Payments:
$19.1 million
Stock Repurchases:
$17.0 million
     $325.8 million remaining in authorization

Q1 and Full-year 2021 Outlook

Q1 2021 Revenue:
$610 to $640 million; +18 to 24%
    Approximately +3% fx impact
Q1 2021 EPS:
$0.65 to $0.75; +81 to 108%
2021 Revenue:
$2.71 to $2.81 billion; +5 to 9%
    Approximately +2 to 3% fx impact
2021 EPS:
$3.80 to $4.10; +5 to 13%


Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 3
“We expect a strong 2021 driven by our robust product pipeline and digital initiatives combined with steady growth in both our customers and sales leaders,” continued Wood. “We plan to expand our customer reach through the Boost and Nutricentials launches in the first half and the introduction of our new product innovations in the second half. We remain focused on balancing our geographic profile through the expansion of our social commerce business and our manufacturing segment. We are forecasting high single-digit revenue growth and expect solid improvement in our operating margin, together driving toward a double-digit increase in earnings per share. Additionally, we increased our quarterly dividend for the 20th consecutive year, a remarkable feat that demonstrates the durability of the Nu Skin business model.”

Mark Lawrence, chief financial officer, added, “Our guidance reflects the strong momentum coming out of 2020 and our focused strategy for 2021. Looking to the first quarter, we anticipate revenue of $610 to $640 million, a growth of 18 to 24 percent including an approximate three percent favorable foreign currency impact. We project earnings per share of $0.65 to $0.75, approximately double the prior year. For our initial full-year 2021 guidance, we anticipate revenue of $2.71 to $2.81 billion, reflecting a positive foreign currency impact of approximately two to three percent. We anticipate annual earnings per share of $3.80 to $4.10.”
 
Investor Day
The Nu Skin Enterprises management team will host an investor day event Feb. 11 at noon (ET). Those wishing to access the webcast, as well as the information presented, can visit the Investor Relations page on the company’s website at ir.nuskin.com. A replay of the event will be available at the same URL through Feb. 25, 2021.
 
About Nu Skin Enterprises, Inc.
Founded more than 35 years ago, Nu Skin Enterprises, Inc. (NSE) empowers innovative companies to change the world with sustainable solutions, opportunities, technologies and life-improving values. The company currently focuses its efforts around innovative consumer products, product manufacturing and controlled environment agriculture technology. The NSE family of companies includes Nu Skin, which develops and distributes a comprehensive line of premium-quality beauty and wellness solutions through a global network of sales leaders in Asia, the Americas, Europe, Africa and the Pacific; and Rhyz, our strategic investment arm that includes a collection of sustainable manufacturing and technology innovation companies. Nu Skin Enterprises is traded on the New York Stock Exchange under the symbol "NUS." More information is available at nuskinenterprises.com.
 

Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 4
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the company’s performance, growth, product pipeline and product launches, customers and sales leaders, strategies and initiatives; projections regarding revenue, operating margin, earnings per share, foreign currency fluctuations and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “anticipate,” “project,” “outlook,” “guidance,” “plan,” “forecast,” “expand,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words.

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, the following:


risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business;
 

adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;
 

risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events;
 

any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis;
 

political, legal, tax and regulatory uncertainties associated with operating in international markets, including Mainland China;
 

uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
 

risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;
 

uncertainties regarding the future financial performance of the businesses the company has acquired;
 

risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
 

regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements;
 

unpredictable economic conditions and events globally, including trade policies and tariffs;
 

the company’s future tax-planning initiatives; any prospective or retrospective increases in duties on the company’s products imported into the company’s 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; and
 

continued competitive pressures in the company’s markets.
 

Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 5
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. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, 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.

Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.

The following table sets forth revenue for the three-month periods ended December 31, 2020 and 2019 for each of our reportable segments (U.S. dollars in thousands):
 
   
Three Months Ended
December 31,
         
Constant-
Currency
 
   
2020
   
2019
   
Change
   
Change
 
Nu Skin
                       
Mainland China
 
$
172,442
   
$
154,731
     
11
%
   
5
%
Americas/Pacific
   
157,984
     
86,146
     
83
%
   
86
%
South Korea
   
90,384
     
81,958
     
10
%
   
5
%
Southeast Asia
   
82,191
     
74,767
     
10
%
   
10
%
Japan
   
73,132
     
65,482
     
12
%
   
7
%
EMEA
   
82,656
     
46,205
     
79
%
   
68
%
Hong Kong/Taiwan
   
45,864
     
41,616
     
10
%
   
5
%
Other
   
(391
)
   
1,860
     
(121
)%
   
(121
)%
Total Nu Skin
   
704,262
     
552,765
     
27
%
   
23
%
Manufacturing
   
43,364
     
30,487
     
42
%
   
42
%
Grow Tech
   
567
     
107
     
430
%
   
430
%
Total
 
$
748,193
   
$
583,359
     
28
%
   
24
%

The following table sets forth revenue for the years ended December 31, 2020 and 2019 for each of our reportable segments (U.S. dollars in thousands):

   
Year Ended
December 31,
         
Constant-
Currency
 
   
2020
   
2019
   
Change
   
Change
 
Nu Skin
                       
Mainland China
 
$
625,538
   
$
722,526
     
(13
)%
   
(14
)%
Americas/Pacific
   
511,941
     
349,078
     
47
%
   
53
%
South Korea
   
326,478
     
329,978
     
(1
)%
   
 
Southeast Asia
   
302,708
     
301,620
     
     
1
%
Japan
   
273,681
     
260,039
     
5
%
   
3
%
EMEA
   
230,246
     
167,165
     
38
%
   
35
%
Hong Kong/Taiwan
   
161,117
     
166,335
     
(3
)%
   
(6
)%
Other
   
(17
)
   
1,621
     
(101
)%
   
(101
)%
Total Nu Skin
   
2,431,692
     
2,298,362
     
6
%
   
6
%
Manufacturing
   
149,339
     
121,917
     
22
%
   
22
%
Grow Tech
   
903
     
137
     
559
%
   
559
%
Total
 
$
2,581,934
   
$
2,420,416
     
7
%
   
7
%


Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 6
The Company's Customers and Sales Leaders statistics by segment as of December 31, 2020 and 2019 are presented in the following table:

   
2020
   
2019
   
% Increase (Decrease)
 
   
Customers
   
Sales
Leaders
   
Customers
   
Sales
Leaders
   
Customers
   
Sales Leaders
 
                                     
Mainland China
   
381,460
     
21,990
     
292,812
     
17,987
     
30
%
   
22
%
Americas/Pacific
   
404,955
     
14,439
     
220,216
     
7,607
     
84
%
   
90
%
South Korea
   
158,953
     
7,059
     
168,972
     
7,251
     
(6
)%
   
(3
)%
Southeast Asia
   
154,355
     
8,903
     
136,349
     
7,480
     
13
%
   
19
%
Japan
   
128,400
     
6,318
     
125,557
     
5,916
     
2
%
   
7
%
EMEA
   
258,587
     
7,063
     
153,330
     
4,619
     
69
%
   
53
%
Hong Kong/Taiwan
   
70,592
     
4,663
     
65,669
     
3,900
     
7
%
   
20
%
Total
   
1,557,302
     
70,435
     
1,162,905
     
54,760
     
34
%
   
29
%


“Customers” are persons who purchased products directly from the company during the previous three months. Our Customer numbers do not include consumers who purchase products directly from members of our sales force.

“Sales Leaders” are independent distributors, and sales employees and independent marketers in China, who achieve certain qualification requirements.


Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 7
NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)

   
Three Months Ended
December 31,
   
Years Ended
December 31,
 
   
2020
   
2019
   
2020
   
2019
 
                         
Revenue
 
$
748,193
   
$
583,359
   
$
2,581,934
   
$
2,420,416
 
Cost of sales
   
194,751
     
140,566
     
658,028
     
581,420
 
Gross profit
   
553,442
     
442,793
     
1,923,906
     
1,838,996
 
                                 
Operating expenses:
                               
Selling expenses
   
284,129
     
228,127
     
1,019,494
     
955,600
 
General and administrative expenses
   
180,616
     
159,987
     
646,848
     
615,970
 
Total operating expenses
   
464,745
     
388,114
     
1,666,342
     
1,571,570
 
                                 
Operating income
   
88,697
     
54,679
     
257,564
     
267,426
 
Other income (expense), net
   
2,736
     
(1,101
)
   
(1,332
)
   
(12,254
)
                                 
Income before provision for income taxes
   
91,433
     
53,578
     
256,232
     
255,172
 
Provision for income taxes
   
17,966
     
13,466
     
64,877
     
81,619
 
                                 
Net income
 
$
73,467
   
$
40,112
   
$
191,355
   
$
173,553
 
                                 
Net income per share:
                               
Basic
 
$
1.44
   
$
0.72
   
$
3.66
   
$
3.13
 
Diluted
 
$
1.40
   
$
0.72
   
$
3.63
   
$
3.10
 
                                 
Weighted-average common shares outstanding (000s):
                               
Basic
   
50,971
     
55,548
     
52,296
     
55,518
 
Diluted
   
52,403
     
55,807
     
52,765
     
55,927
 


Nu Skin Enterprises Reports Fourth-quarter Revenue Growth
Page 8
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)

   
December 31, 2020
   
December 31, 2019
 
ASSETS
           
Current assets:
           
Cash and cash equivalents
 
$
402,683
   
$
335,630
 
Current investments
   
21,216
     
8,413
 
Accounts receivable, net
   
63,370
     
50,378
 
Inventories, net
   
314,366
     
275,891
 
Prepaid expenses and other
   
101,563
     
69,854
 
Total current assets
   
903,198
     
740,166
 
                 
Property and equipment, net
   
468,181
     
453,604
 
Operating lease right-of-use assets
   
155,104
     
144,326
 
Goodwill
   
202,979
     
196,573
 
Other intangible assets, net
   
89,532
     
80,321
 
Other assets
   
138,082
     
154,016
 
Total assets
 
$
1,957,076
   
$
1,769,006
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
 
$
66,174
   
$
38,979
 
Accrued expenses
   
446,682
     
290,281
 
Current portion of long-term debt
   
30,000
     
27,500
 
Total current liabilities
   
542,856
     
356,760
 
                 
                 
Operating lease liabilities
   
112,275
     
105,701
 
Long-term debt
   
305,393
     
334,461
 
Other liabilities
   
102,281
     
96,795
 
Total liabilities
   
1,062,805
     
893,717
 
                 
                 
Stockholders’ equity:
               
Class A common stock
   
91
     
91
 
Additional paid-in capital
   
579,801
     
557,544
 
Treasury stock, at cost
   
(1,461,593
)
   
(1,324,826
)
Accumulated other comprehensive loss
   
(64,768
)
   
(85,292
)
Retained earnings
   
1,840,740
     
1,727,772
 
Total stockholders' equity
   
894,271
     
875,289
 
Total liabilities and stockholders’ equity
 
$
1,957,076
   
$
1,769,006
 

# # #
 
CONTACTS:
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577




The following information was filed by Nu Skin Enterprises Inc (NUS) on Thursday, February 11, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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