Nu Skin Enterprises Reports 12% Revenue Decline and $146.6 Million Net Loss for Fiscal Year 2024

Nu Skin Enterprises, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue falling 12% to $1.73 billion, down from $1.97 billion in 2023. The decrease was primarily attributed to macroeconomic pressures that negatively impacted consumer spending and customer acquisition, alongside a 4% adverse effect from foreign currency fluctuations. The company's net loss for the year was $146.6 million, a stark contrast to a net income of $8.6 million in the previous year. Earnings per share also dropped to $(2.95) from $0.17 in 2023.

In terms of operational metrics, Nu Skin experienced a decline in customer engagement, with the number of customers decreasing by 15% to 831,972, and both Paid Affiliates and Sales Leaders dropping by 13% and 16%, respectively. The company's core beauty and wellness segments saw revenue declines, although the Rhyz segment, which includes various consumer and technology businesses, reported a 32% increase in revenue, contributing $286.6 million to the total. Notably, the company sold its Mavely business in January 2025, which had accounted for $69.6 million of revenue in 2024.

Strategically, Nu Skin has been focusing on enhancing its sales performance plan, which aims to attract and retain affiliates by offering upfront earnings incentives. The company has also been restructuring its operations, leading to significant impairment charges totaling $202.4 million in 2024, primarily related to goodwill and fixed assets. The restructuring efforts are part of a broader strategy to optimize growth and profitability, which included workforce reductions and a focus on core business areas.

Geographically, the Americas segment generated approximately 19% of total revenue, while the Southeast Asia/Pacific and Mainland China segments faced challenges due to economic conditions and regulatory pressures. The company is actively working to adapt its strategies in these regions, including a new market strategy in Argentina that has shown promising results. As of the end of 2024, Nu Skin had approximately 3,100 full- and part-time employees globally, with an additional 8,200 sales employees in Mainland China.

Looking ahead, Nu Skin anticipates continued challenges in 2025, particularly in its core markets, but remains committed to leveraging its Rhyz businesses for growth. The company plans to utilize proceeds from the Mavely sale to reduce debt and invest in strategic initiatives. Despite the current difficulties, Nu Skin aims to enhance its product offerings and sales strategies to improve customer engagement and drive future revenue growth.