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Nu Skin Enterprises Inc. (NUS) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a decrease in revenue to $1.73 billion from $1.97 billion in the previous year, attributed to macroeconomic pressures and foreign-currency fluctuations. The company's revenue was negatively impacted by 4% due to foreign-currency fluctuations.
Nu Skin's core business segments, including the Americas, Southeast Asia/Pacific, and Mainland China, experienced declines in revenue, customers, paid affiliates, and sales leaders. The Rhyz business arm, however, showed a 32% growth, contributing $286.6 million or 17% of the total revenue.
The company reported a net loss of $146.6 million for the year, compared to a net income of $8.6 million in 2023. This loss was primarily driven by restructuring and impairment charges totaling $202.4 million and an inventory write-off charge of $38.8 million.
Gross profit as a percentage of revenue decreased to 68.2% from 68.9% in the previous year. Selling expenses remained relatively stable as a percentage of revenue at 37.6%. General and administrative expenses decreased by $67.9 million, largely due to cost-saving efforts from recent restructuring plans.
Nu Skin's cash and cash equivalents decreased to $198.0 million from $267.8 million at the end of 2023. The company generated $111.7 million in cash from operations in 2024, compared to $118.6 million in the prior year.
Nu Skin's board of directors declared quarterly cash dividends of $0.06 per share throughout 2024, preserving approximately $65.0 million of capital. The company also completed the sale of its Mavely entity in January 2025, which accounted for $69.6 million of 2024 revenue.
The company anticipates capital expenditures of $45-65 million for 2025, primarily for Rhyz plant expansion, technology upgrades, and facility enhancements. Nu Skin plans to fund these expenditures with cash from operations and its revolving credit facility.
Nu Skin continues to navigate challenges in its core markets due to economic conditions and regulatory pressures, particularly in Mainland China. The company is adapting its strategies to enhance its sales performance plan and optimize its product portfolio.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nu Skin Enterprises Inc. annual 10-K report dated February 14, 2025. To report an error, please email earnings@qz.com.