Nu Skin Enterprises Reports 12.7% Revenue Decline but Net Income Recovery in Q1 2025

Nu Skin Enterprises, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenue falling 12.7% to $364.5 million compared to $417.3 million in the same period last year. The decrease was attributed to ongoing macroeconomic challenges that have negatively impacted consumer spending and customer acquisition, as well as a 3% adverse effect from foreign currency fluctuations. The company's net income for the quarter was $107.5 million, a notable recovery from a net loss of $0.5 million in the prior-year period, primarily driven by a pre-tax gain of $176.2 million from the sale of its Mavely business.

In terms of operational metrics, Nu Skin experienced a decline in customer counts, with total customers decreasing by 11% to 776,712. Paid Affiliates and Sales Leaders also saw reductions of 15% and 20%, respectively. The company’s strategic focus for 2025 includes optimizing its business model, enhancing its sales performance plan, and preparing for the launch of its new connected device, the Prysm iO, alongside expansion efforts into the Indian market, which is expected to formally launch in mid-2026.

The company undertook significant organizational changes, including a restructuring plan initiated in late 2023, which resulted in $25.1 million in impairment charges related to its BeautyBio asset group. Additionally, Nu Skin repurchased 0.6 million shares of its Class A common stock for $5 million during the quarter, with $157.4 million remaining available under its stock repurchase plan. The company also declared a quarterly cash dividend of $0.06 per share, totaling $3 million, which was paid on March 5, 2025.

Nu Skin's balance sheet showed total assets of $1.39 billion as of March 31, 2025, down from $1.47 billion at the end of 2024. Current liabilities decreased significantly to $260.3 million from $296.6 million, largely due to a reduction in the current portion of long-term debt. The company’s cash and cash equivalents increased to $203.8 million, bolstered by proceeds from the Mavely sale, despite a $155 million debt repayment during the quarter.

Looking ahead, Nu Skin anticipates continued challenges in its markets but remains focused on strategic initiatives aimed at driving growth and profitability. The company is committed to monitoring macroeconomic trends and adjusting its strategies accordingly, particularly in light of potential impacts from tariffs and trade policies. The management expressed optimism about the long-term vision and the potential for recovery as it implements its business model enhancements and product innovations.