Nu Skin Enterprises Reports Third Quarter Financial Results

PROVO, Utah - Nov. 2, 2022 - Nu Skin Enterprises, Inc. (NYSE: NUS) today announced third quarter 2022 results.

Q3 2022 vs. Prior-year Quarter

Revenue:			$537.8 million; (16)% (7)% FX impact or $(47) million
Earnings Per Share (EPS):			$(0.51) or $0.47 excluding restructuring and impairment charges associated with the company's strategic resource reallocation, compared to $0.97 in Q3 2021
Customers:			1,239,384; (11)%
Paid Affiliates:			243,276; (11)%
Sales Leaders:			49,824; (22)%

"Our third quarter results were impacted more than anticipated by worsening macro headwinds, including prolonged COVID-related disruptions in

Mainland China, slowdown in South Korea, persistent global inflation and excessive foreign currency pressure," said Ryan Napierski, Nu Skin president and CEO. "Despite the challenging macro environment, we further strengthened our position as the

world's leading beauty device system company by introducing our connected ageLOC LumiSpa iO. This introduction, which continues in the fourth quarter, along with the expansion of ageLOC Meta and Beauty Focus Collagen+ products and further

advancement of our social commerce initiatives, helped us deliver constant-currency growth in four of our reporting segments. The growth was led by Southeast Asia/Pacific and our tenth consecutive quarter of growth in our U.S. market. Japan and our

Taiwan/Hong Kong segments grew in constant currency, with reported currency declines due to unfavorable foreign currency.

"We remain focused on Nu Vision 2025 for driving long-term growth and shareholder value as we continue executing against the core elements including

the introduction of EmpowerMe, our personalized beauty and wellness strategy, expansion of our affiliate-powered social commerce business model, and the enhancement of our digital platform. With more challenging macro conditions expected over the

near to mid-term, we are pursuing a more aggressive tactical approach to our previously indicated restructuring to better align capabilities, resources and operational efficiencies. While these decisions are never easy, the moves we are making will

place us in a stronger financial position going forward."

Q3 2022 Year-over-year Operating Results

Revenue:			$537.8 million compared to $641.2 million (7)% FX impact or $(47) million
Gross Margin:			67.7% or 72.7% excluding restructuring and impairment charges, compared to 75.2% Impacted by geographic footprint, foreign currency and global inflationary pressures Nu Skin business was 73.0% or 76.7% excluding restructuring and impairment charges, compared to 78.6%
Selling Expenses:			40.3%, compared to 40.6% Nu Skin business was 43.5%, compared to 43.5%
G&A Expenses:			25.7%, compared to 24.4%
Operating Margin:			(3.8)% or 6.8% excluding restructuring and impairment charges, compared to 10.2%
Other Income / (Expense):			$(8.7) million or $(5.4) million excluding charges associated with our Q4 2021 exit from Grow Tech, compared to $2.8 million
Income Tax Rate:			12.3% or 24.0% excluding restructuring and impairment charges, compared to 27.0%
EPS:			$(0.51) or $0.47 excluding restructuring and impairment charges, compared to $0.97

Dividend Payments:			$19.3 million
Stock Repurchases:			$40.0 million $185.4 million remaining in authorization

Q4 and Full-year 2022 Outlook

Q4 2022 Revenue:			$500 to $550 million; (26) to (18)% Approximately (8) to (10)% FX impact
Q4 2022 EPS:			$0.30 to $0.50 or $0.40 to $0.60 non-GAAP
2022 Revenue:			$2.20 to $2.25 billion; (18) to (16)% Approximately (5) to (7)% FX impact
2022 EPS:			$1.25 to $1.45 or $2.40 to $2.60 non-GAAP

"Anticipating that the challenging global macro pressures persist, our 2022 revenue guidance is expected to be $2.20 to $2.25 billion, with an

approximate 5 to 7 percent foreign currency headwind," said Mark Lawrence, chief financial officer. "We anticipate reported EPS of $1.25 to $1.45 or $2.40 to $2.60 excluding charges associated with the second-half restructuring and impairment

charges and our Q4 2021 exit from Grow Tech. For the fourth quarter, we project revenue of $500 to $550 million, assuming a negative foreign currency impact of approximately 8 to 10 percent, with reported earnings per share of $0.30 to $0.50 or

$0.40 to $0.60 when excluding an anticipated fourth-quarter restructuring and impairment charge of approximately $7 to $10 million."

The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the

webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at ir.nuskin.com. A replay of the webcast will be available on the same page through Nov. 16, 2022.

About Nu Skin Enterprises, Inc.

Nu Skin Enterprises, Inc. (NYSE: NUS) is a global integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform. The

company helps people look, feel and live their best with products that combine the best of science, technology and nature. Backed by more than 35 years of scientific research, Nu Skin develops innovative products including Nu Skin personal care,

Pharmanex nutrition and the ageLOC anti-aging brand which includes an award-winning line of beauty device systems. Nu Skin operates in approximately 50 markets worldwide in the Americas, Asia, Europe, Africa and the Pacific. Rhyz Inc. is the

company's strategic investment arm that includes a collection of technology and manufacturing companies to support growth in the core Nu Skin business. Nu Skin is committed to sustainability, including global initiatives such as transitioning to

reduced and sustainable packaging for all products by 2030. The Nu Skin Force for Good Foundation also strives to improve children's health, education and economic circumstances throughout the world. For more information, visit nuskin.com.

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, shareholder value, financial position, strategies, vision, transformation, initiatives, product pipeline and product introductions, digital

and social-commerce tools and initiatives, customers, sales leaders, affiliates, and operational improvements; projections regarding revenue, expenses, operating income, earnings per share, foreign currency fluctuations, uses of cash 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," "continue,"

"outlook," "guidance," "remain," "become," "plan," "potential," "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:

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.

Earnings per share, gross margin, operating margin, other income (expense), and income tax rate, each excluding restructuring

and impairment charges and/or charges associated with our Grow Tech exit, also are non-GAAP financial measures. Restructuring and impairment charges and charges associated with our Grow Tech exit are not part of the ongoing operations of our

underlying business. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of restructuring and impairment charges and charges associated with our Grow Tech exit

facilitates period-to-period comparisons of the company's performance. Please see the reconciliations of these items to our earnings per share and other income (expense) calculated under GAAP, below.

The following table sets forth revenue for the three-month periods ended September 30, 2022 and 2021 for each of our reportable segments (U.S.

dollars in thousands):

	Three Months Ended September 30,					Constant- Currency Change
	2022		2021			Change
Nu Skin
Americas	$	131,591		$	131,482		-		3	%
Mainland China		75,151			134,291		(44	)%	(41	)%
Southeast Asia/Pacific		83,502			79,081		6	%	12	%
South Korea		67,237			91,989		(27	)%	(15	)%
Japan		53,276			65,117		(18	)%	3	%
EMEA		45,099			55,839		(19	)%	(6	)%
Hong Kong/Taiwan		39,587			39,921		(1	)%	6	%
Nu Skin other		496			1,672		(70	)%	(70	)%
Total Nu Skin		495,939			599,392		(17	)%	(9	)%
Rhyz Investments
Manufacturing		41,328			41,635		(1	)%	(1	)%
Rhyz other		538			125		330	%	330	%
Total Rhyz Investments		41,866			41,760		-		-
Total	$	537,805		$	641,152		(16	)%	(9	)%

The following table sets forth revenue for the nine-month periods ended September 30, 2022 and 2021 for each of our reportable segments (U.S.

dollars in thousands):

	Nine Months Ended September 30,					Constant- Currency Change
	2022		2021			Change
Nu Skin
Americas	$	379,616		$	403,755		(6	)%	(4	)%
Mainland China		286,454			438,066		(35	)%	(34	)%
Southeast Asia/Pacific		267,805			246,338		9	%	13	%
South Korea		208,678			261,724		(20	)%	(11	)%
Japan		171,019			203,001		(16	)%	(1	)%
EMEA		148,938			215,134		(31	)%	(22	)%
Hong Kong/Taiwan		117,408			114,795		2	%	6	%
Nu Skin other		2,434			3,497		(30	)%	(30	)%
Total Nu Skin		1,582,352			1,886,310		(16	)%	(11	)%
Rhyz Investments
Manufacturing		119,898			135,760		(12	)%	(12	)%
Rhyz other		1,069			163		556	%	556	%
Total Rhyz Investments		120,967			135,923		(11	)%	(11	)%
Total	$	1,703,319		$	2,022,233		(16	)%	(11	)%

The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for

the three-month periods ended September 30, 2022 and 2021:

	Three Months Ended September 30,		Change
Customers	2022		2021
Americas		316,123		324,884	(3	)%
Mainland China		256,183		355,256	(28	)%
Southeast Asia/Pacific		153,432		162,047	(5	)%
South Korea		134,549		156,431	(14	)%
Japan		121,202		123,453	(2	)%
EMEA		187,906		210,705	(11	)%
Hong Kong/Taiwan		69,989		62,491	12	%
Total		1,239,384		1,395,267	(11	)%

	Three Months Ended September 30,		Change
Paid Affiliates	2022		2021
Americas		44,745		50,619	(12	)%
Mainland China		23,088		32,167	(28	)%
Southeast Asia/Pacific		40,624		43,298	(6	)%
South Korea		47,852		54,119	(12	)%
Japan		38,119		38,315	(1	)%
EMEA		31,409		36,245	(13	)%
Hong Kong/Taiwan		17,439		18,872	(8	)%
Total		243,276		273,635	(11	)%

	Three Months Ended September 30,		Change
Sales Leaders	2022		2021
Americas		9,545		11,889	(20	)%
Mainland China (1)		11,897		19,392	(39	)%
Southeast Asia/Pacific		7,618		7,623	-
South Korea		6,992		8,929	(22	)%
Japan		6,063		6,007	1	%
EMEA		4,777		6,417	(26	)%
Hong Kong/Taiwan		2,932		3,629	(19	)%
Total		49,824		63,886	(22	)%

"Customers" are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who

qualify as Sales Leaders, but they do not include consumers who purchase products directly from members of our sales force.

"Paid Affiliates" are any Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our

independent sales force as "Brand Affiliates" because their primary role is to promote our brand and products through their personal social networks.

"Sales Leaders" are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who had achieved certain qualification requirements as of the end of each month of the quarter.

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

(U.S. dollars in thousands, except per share amounts)

	Three Months Ended September 30,			Nine Months Ended September 30,
	2022			2021			2022		2021
Revenue	$	537,805			$	641,152		$	1,703,319		$	2,022,233
Cost of sales		173,500				158,907			483,099			501,448
Gross profit		364,305				482,245			1,220,220			1,520,785
Operating expenses:
Selling expenses		216,478				260,333			678,603			816,887
General and administrative expenses		137,987				156,528			428,105			490,225
Restructuring and impairment expenses		30,124				-			30,124			-
Total operating expenses		384,589				416,861			1,136,832			1,307,112
Operating income (loss)		(20,284	)			65,384			83,388			213,673
Other income (expense), net		(8,680	)			2,781			(18,773	)		351
Income before provision for income taxes		(28,964	)			68,165			64,615			214,024
Provision (benefit) for income taxes		(3,574	)			18,436			17,052			57,527
Net income (loss)	$	(25,390	)		$	49,729		$	47,563		$	156,497
Net income (loss) per share:
Basic	$	(0.51	)		$	0.99		$	0.95		$	3.11
Diluted	$	(0.51	)		$	0.97		$	0.94		$	3.03
Weighted-average common shares outstanding (000s):
Basic		50,199				50,098			50,187			50,304
Diluted		50,199				51,260			50,822			51,629

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

	September 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	294,136			$	339,593
Current investments		13,868				15,221
Accounts receivable, net		47,991				41,299
Inventories, net		327,481				399,931
Prepaid expenses and other		94,366				76,906
Total current assets		777,842				872,950
Property and equipment, net		433,367				453,674
Operating lease right-of-use assets		105,103				120,973
Goodwill		206,432				206,432
Other intangible assets, net		68,743				76,991
Other assets		171,685				175,460
Total assets	$	1,763,172			$	1,906,480
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	41,620			$	49,993
Accrued expenses		281,418				372,201
Current portion of long-term debt		42,500				107,500
Total current liabilities		365,538				529,694
Operating lease liabilities		78,053				88,759
Long-term debt		382,323				268,781
Other liabilities		95,324				106,474
Total liabilities		921,238				993,708
Commitments and contingencies
Stockholders' equity:
Class A common stock - 500 million shares authorized, $0.001 par value, 90.6 million shares issued		91				91
Additional paid-in capital		609,886				601,703
Treasury stock, at cost - 40.9 million and 40.7 million shares		(1,559,967	)			(1,526,860	)
Accumulated other comprehensive loss		(109,385	)			(73,896	)
Retained earnings		1,901,309				1,911,734
Total stockholders' equity		841,934				912,772
Total liabilities and stockholders' equity	$	1,763,172			$	1,906,480

NU SKIN ENTERPRISES, INC.

Reconciliation of Gross Margin Excluding Impact of Restructuring and Impairment to GAAP Gross Margin