Nu Skin Enterprises Reports Third Quarter Results

PROVO, Utah - Nov. 7, 2024 - Nu Skin Enterprises

Inc. (NYSE: NUS) today announced third quarter results in line with guidance.

Q3 2024 vs. Prior-year Quarter

Revenue			$430.1 million; (13.8)% (3.4)% FX impact or $(16.7) million Rhyz revenue $73.1 million; 20.9%
Earnings Per Share (EPS)			$0.17 compared to $(0.74) or $0.56 excluding an inventory write-off
Customers			831,768; (15)%
Paid Affiliates			149,264; (20)% or (11)% excluding an adjustment to eligibility requirements
Sales Leaders			38,284; (19)%

"During the third quarter, we achieved results within our previous guidance range with challenges in the core business partially offset by continued strong growth in our

Rhyz segment," said Ryan Napierski, Nu Skin president and CEO. "While we continue to face macroeconomic pressures and challenges within the direct selling industry, our immediate focus is to strengthen the Nu Skin core with a revised business model

intended to improve channel activation and customer growth beginning with North America and South Korea this quarter. In addition, we are introducing a streamlined operating framework to improve profitability with an adjusted pricing model to

improve customer penetration in developing markets starting with Latin America and certain markets in Southeast Asia, and an accelerated product portfolio optimization plan to improve overall gross margin globally. We also continue to empower

growth in our Rhyz businesses with impressive results coming from Mavely and our manufacturing companies."

Q3 2024 Year-over-year Operating Results

Revenue			$430.1 million compared to $498.8 million (3.4)% FX impact or $(16.7) million Rhyz revenue $73.1 million; 20.9%
Gross Margin			70.1% compared to 58.6% or 71.8% excluding an inventory write-off Nu Skin business was 76.5% compared to 61.8% or 76.8% excluding an inventory write-off
Selling Expenses			39.0% compared to 37.6% Nu Skin business was 43.5% compared to 41.7% o Includes expense for biannual sales conferences
G&A Expenses			26.9% compared to 26.2%
Operating Margin			4.2% compared to (5.3)% or 7.9% excluding an inventory write-off
Interest Expense			$6.5 million compared to $7.5 million
Other Income/(Expense)			$1.6 million compared to $(0.6) million
Income Tax Rate			37.6% compared to (7.3)% or 10.1% excluding an inventory write-off
EPS			$0.17 compared to $(0.74) or $0.56 excluding an inventory write-off

Dividend Payments			$3.0 million
Stock Repurchases			$0.0 million $162.4 million remaining in authorization

Q4 and Full-year 2024 Outlook

Q4 2024 Revenue			$410 to $445 million; (16)% to (9)% Approximately (2) to (1)% FX impact
Q4 2024 EPS			$(0.09) to $0.01 or $0.19 to $0.29 non-GAAP
2024 Revenue			$1.70 to $1.73 billion; (14)% to (12)% Approximately (4) to (3)% FX impact
2024 EPS			$(2.32) to $(2.22) or $ 0.65 to $0.75 non-GAAP

"As part of our cost-efficiency program, during the quarter we saved an additional $15 million in general and administrative expense and remain on

track to meet the high end of our range of $45 to $65 million for 2024," said James D. Thomas, chief financial officer. "During the quarter, we generated $31.4 million in cash from operations, reduced inventory levels $43 million year over year

and paid down debt to further strengthen our balance sheet. Given ongoing pressures in the core Nu Skin business, we are adjusting our 2024 outlook. We now anticipate 2024 revenue in the range of $1.70 to $1.73 billion, with earnings per share of

$(2.32) to $(2.22) or $0.65 to $0.75 excluding restructuring and impairment charges. For Q4, we are forecasting projected revenue of $410 to $445 million and earnings per share of $(0.09) to $0.01 or $0.19 to $0.29 excluding planned restructuring

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. 21, 2024.

About Nu Skin Enterprises Inc.

The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty and wellness company,

powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by 40 years of scientific research, the company's products help people look, feel and live their best with brands including Nu Skin personal

care, Pharmanex nutrition and ageLOC anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the

beauty, wellness and lifestyle categories.

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 macro environment and the company's performance, growth and growth opportunities, strategies, initiatives, areas of focus, sales force, shareholder value, product previews and launches, product portfolio optimization,

transformation, evolution, operational and financial initiatives, digital tools and initiatives, new market expansion, and plans for developing and emerging markets; projections regarding revenue, expenses, margins, tax rates, earnings per share,

foreign currency fluctuations, future dividends, uses of cash, financial position 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," "become," "plan," accelerate," "project," "continue," "outlook," "guidance," "improve," "enhance," "will," "would," "could," "may," "might," the negative of these words and other

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 and income tax rate, each excluding restructuring and impairment charges and/or inventory

write-off charges, also are non-GAAP financial measures. Restructuring and impairment charges and inventory write-off charges 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 these charges facilitates period-to-period comparisons of the company's performance. Please see the reconciliations of these items to our earnings per share,

gross margin, operating margin and income tax rate calculated under GAAP, below.

The following table sets forth revenue for the three-month periods ended September 30, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):

	Three Months Ended September 30,					Constant-Currency
	2024		2023			Change	Change
Nu Skin
Americas	$	77,194		$	91,671		(15.8	)%	0.1	%
Southeast Asia/Pacific		59,515			68,743		(13.4	)%	(13.2	)%
Mainland China		53,020			70,225		(24.5	)%	(25.4	)%
Japan		47,222			53,399		(11.6	)%	(8.9	)%
South Korea		45,201			63,709		(29.1	)%	(27.1	)%
Europe & Africa		38,577			50,048		(22.9	)%	(23.6	)%
Hong Kong/Taiwan		33,749			40,724		(17.1	)%	(16.4	)%
Nu Skin other		2,518			(274	)	1,019.0	%	1,019.0	%
Total Nu Skin		356,996			438,245		(18.5	)%	(14.7	)%
Rhyz Investments
Manufacturing		51,773			49,714		4.1	%	4.1	%
Rhyz other		21,376			10,813		97.7	%	97.7	%
Total Rhyz Investments		73,149			60,527		20.9	%	20.9	%
Total	$	430,145		$	498,772		(13.8	)%	(10.4	)%

The following table sets forth revenue for the nine-month periods ended September 30, 2024, and 2023 for each of our reportable segments (U.S. dollars in thousands):

	Nine Months Ended September 30,					Constant- Currency
	2024		2023			Change	Change
Nu Skin
Americas	$	237,160		$	300,469		(21.1	)%	(12.1	)%
Southeast Asia/Pacific		179,921			200,317		(10.2	)%	(7.4	)%
Mainland China		178,797			226,563		(21.1	)%	(19.2	)%
Japan		134,045			156,867		(14.5	)%	(6.5	)%
South Korea		130,283			187,719		(30.6	)%	(28.0	)%
Europe & Africa		121,564			144,460		(15.8	)%	(16.0	)%
Hong Kong/Taiwan		98,061			112,380		(12.7	)%	(10.8	)%
Nu Skin other		3,186			208		1,431.7	%	1,431.7	%
Total Nu Skin		1,083,017			1,328,983		(18.5	)%	(14.3	)%
Rhyz Investments
Manufacturing		153,548			131,032		17.2	%	17.2	%
Rhyz other		49,967			20,476		144.0	%	144.0	%
Total Rhyz Investments		203,515			151,508		34.3	%	34.3	%
Total	$	1,286,532		$	1,480,491		(13.1	)%	(9.3	)%

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, 2024, and 2023:

	Three Months Ended September 30,
	2024		2023		Change
Customers
Americas		211,583		231,215		(8	)%
Southeast Asia/Pacific		86,307		111,151		(22	)%
Mainland China		148,402		189,221		(22	)%
Japan		112,257		114,316		(2	)%
South Korea		90,248		109,550		(18	)%
Europe & Africa		135,291		169,320		(20	)%
Hong Kong/Taiwan		47,680		54,134		(12	)%
Total Customers		831,768		978,907		(15	)%

Paid Affiliates
Americas	28,772	32,769	(12	)%
Southeast Asia/Pacific (1)	26,749	33,574	(20	)%
Mainland China	22,843	27,509	(17	)%
Japan (1)	22,623	37,695	(40	)%
South Korea	20,774	24,110	(14	)%
Europe & Africa	16,556	19,254	(14	)%
Hong Kong/Taiwan	10,947	11,251	(3	)%
Total Paid Affiliates	149,264	186,162	(20	)%

Sales Leaders
Americas	6,450	7,537	(14	)%
Southeast Asia/Pacific	5,398	6,351	(15	)%
Mainland China	9,348	12,647	(26	)%
Japan	6,866	7,087	(3	)%
South Korea	4,388	6,436	(32	)%
Europe & Africa	3,318	4,105	(19	)%
Hong Kong/Taiwan	2,516	2,868	(12	)%
Total Sales Leaders	38,284	47,031	(19	)%

(1) The September 30, 2024, number is affected by a change in eligibility requirements for receiving certain rewards within our compensation

structure. We plan to implement these changes in additional segments over the next several quarters.

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,
	2024		2023			2024		2023
Revenue	$	430,145		$	498,772		$	1,286,532		$	1,480,491
Cost of sales		128,682			206,505			383,828			475,635
Gross profit		301,463			292,267			902,704			1,004,856
Operating expenses:
Selling expenses		167,612			187,750			486,617			561,039
General and administrative expenses		115,620			130,882			358,107			401,825
Restructuring and impairment expenses		-			-			156,484			9,787
Total operating expenses		283,232			318,632			1,001,208			972,651
Operating income (loss)		18,231			(26,365	)		(98,504	)		32,205
Interest expense		6,500			7,535			20,545			18,192
Other income (expense), net		1,567			(551	)		1,800			3,237
Income (loss) before provision for income taxes		13,298			(34,451	)		(117,249	)		17,250
Provision (benefit) for income taxes		4,996			2,504			(6,760	)		15,937
Net income (loss)	$	8,302		$	(36,955	)	$	(110,489	)	$	1,313
Net income (loss) per share:
Basic	$	0.17		$	(0.74	)	$	(2.23	)	$	0.03
Diluted	$	0.17		$	(0.74	)	$	(2.23	)	$	0.03
Weighted-average common shares outstanding (000s):
Basic		49,707			49,859			49,645			49,812
Diluted		49,733			49,859			49,645			50,029

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

	September 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	227,751			$	256,057
Current investments		10,077				11,759
Accounts receivable, net		68,812				72,879
Inventories, net		247,789				279,978
Prepaid expenses and other		98,942				81,198
Total current assets		653,371				701,871
Property and equipment, net		410,673				432,965
Operating lease right-of-use assets		85,550				90,107
Goodwill		99,885				230,768
Other intangible assets, net		85,266				105,309
Other assets		248,150				245,443
Total assets	$	1,590,895			$	1,806,463
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	32,736			$	43,505
Accrued expenses		246,615				260,366
Current portion of long-term debt		60,000				25,000
Total current liabilities		339,351				328,871
Operating lease liabilities		68,351				70,943
Long-term debt		373,470				478,040
Other liabilities		94,848				106,641
Total liabilities		876,020				984,495
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		624,665				621,853
Treasury stock, at cost - 40.9 million and 41.1 million shares		(1,563,878	)			(1,570,440	)
Accumulated other comprehensive loss		(105,040	)			(100,006	)
Retained earnings		1,751,037				1,870,470
Total stockholders' equity		706,875				821,968
Total liabilities and stockholders' equity	$	1,582,895			$	1,806,463

NU SKIN ENTERPRISES, INC.

Reconciliation of Gross Margin Excluding Impact of Inventory Write-off to GAAP Gross Margin