Nu Skin's Sales Decline Deepens Again
Second-quarter revenue fell 17.1% to $320.1 million, reversing an easing in the decline and accompanying cuts to annual forecasts.
Nu Skin Enterprises Inc. (NUS), the beauty and wellness company, saw its sales decline deepen again in the second quarter, reversing the improvement in the pace of contraction at the start of the year. The company also cut its annual revenue and adjusted earnings forecasts.
The reported year-over-year revenue decline had narrowed from 16.9% in the final quarter of 2025 to 12.0% in the first quarter of 2026, before widening to 17.1% in the three months ended June. The fourth-quarter comparison included Mavely revenue in the year-earlier base. Foreign exchange reduced second-quarter revenue by $4.0 million.
The core Nu Skin business generated $271.2 million of quarterly revenue. All its geographic businesses reported lower sales than a year earlier. The Americas was the largest regional operation, contributing $59.8 million, followed by Mainland China at $46.0 million. Japan recorded $38.1 million. The weakness extended across the company's regional operations.
Southeast Asia/Pacific contributed $43.3 million, Europe & Africa $32.3 million and Hong Kong/Taiwan $26.1 million. South Korea generated $25.6 million. The geographic spread of the revenue contraction accompanied a smaller customer base and fewer compensated affiliates across the core business.
Rhyz, the company's strategic investment arm, generated another $48.9 million of revenue. Manufacturing accounted for $46.4 million of that total, leaving $2.5 million from Rhyz Other. The revenue mix left manufacturing responsible for nearly all of Rhyz's sales, while the geographic Nu Skin operations accounted for most company revenue.
The core business counted 660,037 customers and 120,291 paid affiliates during the quarter. Nu Skin defined customers as people who purchased directly from the company during the three-month period, including qualifying sales-force members. The count excluded consumers who bought directly from members of its sales force.
Sales-leader attrition nevertheless continued to ease. The year-over-year decline in that measure narrowed from 19% in the fourth quarter to 13% in the first and 9% in the second, when the count was 26,998. That improving participation trend had yet to coincide with a sustained easing of the company's reported revenue decline.
Non-cash charges dominated the reported loss. Nu Skin recorded $78.9 million of impairment expenses and a $167.5 million valuation allowance on deferred tax assets. Its quarterly net loss was $249.8 million, or $5.14 a share. The company excluded the impairment and non-cash tax charges from its adjusted earnings measure.
Excluding those charges, earnings were $0.20 a share. Adjusted operating margin narrowed to 6.1% from 8.0% a year earlier, showing that the earnings pressure extended beyond the non-cash items. Gross margin was 68.2%. Interim Chief Financial Officer Chelsea Lantz said adjusted earnings landed near the midpoint of guidance and attributed that result to the company's focus on profitability and disciplined execution.
For the full year, Nu Skin now forecasts revenue of $1.28 billion to $1.35 billion, down from its previous range of $1.35 billion to $1.50 billion. Lantz said the revised outlook incorporated first-half performance and the company's expectations for the remainder of the year.
The company also reduced its full-year adjusted earnings forecast to $0.70 to $0.90 a share from $0.80 to $1.20 a share. Chief Executive Ryan Napierski said Nu Skin continued rolling out its Prysm iO wellness platform and preparing for the formal launch of India, while incorporating lessons from those initiatives into its plans.
Third-quarter guidance calls for revenue of $310 million to $340 million and adjusted earnings of $0.10 to $0.20 a share. Napierski said the company was realigning organizational resources. Nu Skin anticipates approximately $5 million of cash-based transition costs in the third quarter.
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