NUS - Earnings call transcript Q1 2021 | Nu Skin Enterprises, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Q1 2021 Nu Skin Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Scott would to conference I speaker your Pond. Instructions] like the to over [Operator Please go ahead.

Scott Pond

earnings assist more Executive discussion President risks. financial Thanks, Peter. numbers our from actual for of Chief non-GAAP me a SEC Chief numbers. anticipated. with over certain on with that includes the materially in Financial numbers from Please at the Ryan to call differ in And comparable during statements. good manner. Ritch. page investor call, afternoon, are; turn everyone. Officer. financial On some that Ritch period-to-period refer statements We comments complete Mark CEO-elect; Please be differ made may And and of and to discussed Today today's call Officer; these Lawrence, for our numbers Napierski, Also, will statements. believe in the These results any our involve discussed reconciliation these results time ir.nuskin.com or release a consistent risks that, I'll be forward-looking obtained may financial required non-GAAP and filings refer today's to uncertainties and and those Wood, comparing

Ritch Wood

really Scott this first today. quarter. that and you, progress generated results in everyone. customer-obsessed, has record We good so socially-enabled afternoon, join a Thank us pleased becoming you appreciate I'm and our with business that

and as results our shifts today. and cadence strategic growth loyal and retaining amazing We XXX% commerce the for Our few us implemented made success example, consumer we're great of in the positioned and enhancements trends dedicated focus to leaders powerful associated invested drive attracting XX% our to secure I chain. enhancements in sales We our years, to We per on are product and employees These in over and other has want strategy us revenue reporting and responsible supply first business critical our for recognize our talented share we quarter. enable well companies behaviors. aligned sales customers. social the structure past strategy we growth macro manufacturing for our we launches. compensation who to increased our the refined helped earnings amid

the As result, our in and both quarter reporting per we're we raising for history best share Nu first the a revenue Skin's and year. guidance earnings are for

the responsibilities continue work and developing together confident am As is of strategy, leading to to few well. foundation initiatives. so future. I is This this and on the I progress the of highlight growth success Ryan key and our drive that team like leadership right on existing the in is and build closely the transition execution I a continued great on progressing the hands. of business would to in

and XX-year history products people upon our to that continue we developing world-class best. First, and look help build wellness beauty of feel their

people our Boost For for if at a to including to ways continue enjoy experience grow popularity. look LumiSpa and beauty example, in devices, ageLOC spa-like home,

brand recently year. number beauty Skin, fourth one named world's In fact, the Euromonitor device Nu systems for the consecutive

they products the about we later of call. our potential feature which share we philosophy and the Nutricentials that pipeline, And into about goes with details use, will packaging. Bioadaptives what this excited of formulas in robust really our mindful increasingly sustainable become I'm extended consumers product As product more clean

social long commerce transition. to platforms digital consumers recognize moving stay. world strategy the the of is a COVID-XX which here trend We as new even moves Next, accelerated towards our normal, before this to

moment. a like revenue customer business speak XX% in momentum, will our is quarter. XX% record our and growth. a result growth West balance, also embracing with growth gain continues demographic, sales social model. and detail achieved triple-digit of reported in brand growth commerce encouraged our XX% affiliates, to and which younger our larger first We're the reaching improving geographic Ryan in the Our the which growth to results a would I'm in and I leader segment, manufacturing highlight in by the more to

to sustainability provide reduce our continue ongoing strengthen lean efforts with responsible our business sourcing, commitment packaging impact environmental of eco-friendly to initiatives more into environment controlled We to our our operations, in investments and including the agriculture.

our introductions, quarter customer strong for we revenue our guidance. interest points and are planned sales midpoint raising adjusted growth, per about Given for leader first our our growth increasing to of sales share. The and leader performance, and and new of XXXX XX% XX% earnings guidance product

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Ryan Napierski

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seismic mobile We're is the consumer ultimate to wellness the gig of expansion global connections beauty world's leading to aspiration Our behaviors digital, become from economy. in witnessing shifts and the platform. social and

world year. today's greater in leader and strategic Our commerce being This our record sales build revenue digital capabilities change. advertising, over past of combined and before, own and quarter to have significantly trend our the These over positioned accelerated never strong retail first us last investments has EPS. strategy that results both pace growth trends well is years, the opportunities accelerate with customer resulted in eCommerce to rapidly. and realize disrupted social influencer and like by marketing has Traditional changing are a and

quarter, about three key grow. the through of Before strategy our into to detail want the components more I to I go run

our products, innovative platform. Our powerful our affiliate channel unique and

wellness is categories our innovative grow and projected and regarding We product products cadence and billion bringing First, and XXXX. more in including This than to beauty between of products, market. annually devices. is fastest-growing category innovative to now nearly $X play beauty we've beauty in the wellness, refined XX%

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results wellness industry. the the further Our will first are the that quarter an throughout transform and that emerging West parts is East and of beauty commerce social model evidence

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they continue less our with unit. This momentum more and global driven fluctuations local partnered launch prepare Customers is region, size as half. improve create the all into market be this as the steps Pacific, both effective growth we of issues. revenue susceptible the by roughly key up moving posted Boost business to our embrace accelerated pace Nutricentials promotions. launch customers region. X% XX% sustainable forward performance of significant grew and QX of metrics revenue to and providing currency Europe, markets, France for Germany, in expanding Africa growth on throughout Beginning continues of quarter and to our make product market. every we year-over-year, to to leaders Collagen+ currency demonstrating Americas of Beauty now leaders adoption China sustainable quarter Turning geographic second will growth sales with highest constant currency as XX%. Mainland to the move region and sales and on growth and customers and Middle first balance. the revenue EMEA growth geopolitical now in region become This Bioadaptives across social East XX% individual with social UK, the take Mainland as the our Poland with growth business commerce leaders leaders in led of China we achieved and beyond. commerce. and significantly, sales Focus our posted any to grew way constant This also us in largest The ageLOC the

our our reported in including of We meetings, invest which WeShop Hong ecosystem. in with dependency will China's in partnership sales our leaders growth this own Tencent, better and by initiative within commerce believe in-person Taiwan year. Hong new adopt we in second macro begins will with a to continue being own decline, commerce the further on technologies in to social out Taiwan's this reduce robust half roll Kong. X% which to currency constant Kong This continued digital enable market, offset social challenges

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market. South Korea now adopting social focused throughout is on commerce the

region, anticipate quarter. Japan's in but Southeast I'd will growth increased which to in social we across and effects Asia's currency by time. also local constant declined XX% markets, commerce currency adoption during highlight X% the like revenue the impacted of growth generate lingering COVID certain renewed

gear recent there and global for as catch optimism starting a our year and launches. our younger the and to consumers business beauty ageLOC aggregate raised our products, guidance Our Boost based Bioadaptive business. upon new We've including in we're the wellness discover seeing Nutricentials

saying So let our by ever looks that has. me than wrap today brighter up it future

We people wellness improve become lives vision world's into to are our company beauty mission leading leaning to to and that's by fully the opportunity powered our affiliate dynamic platform. empower our innovative and

quarter over investments I'll XXXX strategy, results update will affiliates, remainder the for beyond. financial Mark aligned the turn throughout drive and are value with excellence greater this commitment and the and shareholders Our our to over time to Mark? operational for even go employees of customers, And to goal the that, guidance. to and and

Mark Lawrence

to today. update regarding Details our give QX in additional thanks you be can results, our of supplemental Ryan. information call and also our outlook. provide full year earnings on for color Investor guidance and release Thanks, website. the And Relations joining found some financial all XXXX I'll our our

the share above $XXX increased $X.XX. of to top QX share for foreign in our million, with the XX margins mix few a to to increased year came end QX against of and gross XX.X% XX.X% Gross revenue prior quarter year. positive XX.X% margin the due and earnings XX% freight past were prior quarter impact Skin sequentially basis the the improved per quarter guidance. Nu Gross for First of currency Earnings quarter. X.X%. XXX% to revenue versus per charges the margin points was their in easing quarters. product in XX.X% prior

and West to segment. margin manufacturing markets, Our gross continues be by our impacted in growth our

growth by us lowering tax this However, our rate. overall benefits

Speaking secure of those primary purpose our our supply to acquisitions chain. of was manufacturing segment, a

our agility flexibility most part, was year. for launch most key in significant our been expense products to and a COVID-XX of our keep Selling supply chain compared the revenue percent us of prior maintain chain product of widespread The has schedule, allowed and One supply of has the challenges XX.X% disruptions. to stock. in the as XX.X%

compared Skin was For XX%. the business, Nu it to XX.X%

during our compared and a was increase strong and selling of to a XX.X% fluctuate As expenses incentives. growth quarter-to-quarter qualify leaders expense reminder, percent as General administrative often XX.X% revenue sales as for revenue more year-over-year. of

very towards to quarter. revenue growth. quarter, earnings infrastructure is growth the our operating strong improved and X.X% operating pleased margin improve stated operating the accelerating margin. our X.X% goal with leverage compared to to This which for continue We support of step margin, in I XX% our am to year prior another

$XXX.X The other driven million expense interest continued a million improvement Consistent historical to stock, our remaining shares. in reflects the past The with million gain, foreign with and $XX.X year. million over $XX.X five X trends, repurchasing than expectations $X.X of quarters, our compared cash dividends line by and by generating was shareholder value quarter investment outflow million a income $XX.X an prior more million. We authorization, reduced in currency, and was repurchased $X.X have operations the first focus income. we of million expense from paid on expense in

of Our our tax product and by our increased quarter are guidance West increasing annual the in top XX.X% $XX strengthening rate planned for results, as share first XXXX profits by per mentioned $X.XX. robust benefited the quarter strong earlier. introductions, trends approximately by Due end was and to million I we our revenue earnings the

This tax positive is X% $X.XX of XX% rate Our to XX%. guidance of to currency annual of foreign X% assumes with and per billion, XXXX $X.XX $X.X billion to a guidance revenue now a earnings share to $X.XX. impact

million, share million foreign X%. to of earnings positive now of $XXX impact approximately quarter your call XX% we $X.XX rate to assuming that, for a With revenue tax is second the guidance will per currency up guidance and a $XXX Our XX%. QX is $X.XX assumes questions. open to

Operator

Bank. Faiza [Operator your line Alwy of from And Deutsche the Instructions] question from comes first

line Your is open.

Faiza Alwy

Hi. Yes. everyone. afternoon, Good

Ritch Wood

Hi, Faiza.

Faiza Alwy

Hi.

or I'm first my did you to question of anticipated. if you led shed if was, more better some curious know, know, could Eastern the light Western a in to guess was, that sort you or the your you than be it you did just, the outlook? I know, markets that some So versus of better if markets, around revenue is if product what

more would just helpful. So that be perspective around

Ritch Wood

Yeah.

the I'd Faiza, you comment But seeing revenue profile. I our markets. the know, in world Eastern very that and are Western first, think today thanks question, for markets that above well. the performed very, We the our, leading overall overall the growth we're around love business balance

for I balance, yeah, would the outperformed say sure. Western but good So real markets

Faiza Alwy

okay. Okay,

year more with later And the by coming China specifically changed as I outlook of, in markets the year. particular we that, you any give to your this sort sort markets where markets know, initiatives are with if respect Eastern again, your changing to if look play have Could and know, out you digital that are to into you're mentioned, process? you of that perspective outlook of Eastern anything you those Ryan, know, And sort in So on all? you you that you has respect at know, markets? started

Ryan Napierski

also social around well beauty and to systems know, device with I I commerce. West, - those through continue good just Faiza, to we see exciting, you no, adding commerce, moving see Yeah, in to is social Ritch's which our think comment devices really traction only the as really

for different seeing West. to And overall, and the trend On the the growth reasons yeah strong know, COVID but yeah, recover continues of continue well. those returning East you we different out to positive in to areas see states, a really side, outlook growth as in in and

Faiza Alwy

reasons you to at one XX% a the devices curious well reduced, consumer grow view to know, And have increases? you then home consumers know, of you the of a step that so Can I'm treatments. I'm what us to do of you You that we you devices. sort curious beauty have say back and - devices expect devices give sort these sort on mobility of is mobility per view of, off hear sort throughout device should think beauty is sort COVID mentioned know, was that you as because you of more expected just Or of you there's pattern that of And helpful that, expect some, continue? understood. are year. and grow sort your Okay, new and done why do home you in at sort enjoyed a it level? of of do sales know,

Ritch Wood

question, particularly because really up It's XX% a key a great make nearly our Faiza, growth devices and revenue driver. of are

year, know, continue into As of starting to the see we're devices, normal you of necessarily see new we this lot around impacted a we to that by, in those come strength the these not you with just a fortunately, real devices. I launched and world Boost, more connecting think customers with we'll devices And pipeline we interactive, strong making forward. going be we have them know, sort

So continuing to that that. very, maybe Ryan, we see strong. you'd add to trend very play

Ryan Napierski

I your home just definitely momentum that there's towards away. at don't a home treatments, adding question we Faiza, going Yeah, that, at - see continued around to But think treatments. don't I

In consumers more and more are we device more that flexible fact, towards moving and treatments really see consumer-friendly.

ongoing see just we that's And you an us, trend. know, so for really this,

to moving that's say, to I and commerce, I which systems these something benefit, consumables explain benefits real the just at of the device to home plus think really place us, to again, a for through social so great the should add the back systems is it. social maybe goes and device big device commerce

Faiza Alwy

appreciate Really you it. Thank so Great. much.

Ryan Napierski

- bet You

Ritch Wood

you, Thank Faiza.

Operator

with Doug your And Research. line from comes the of question next Lane Lane

line Your is open.

Doug Lane

me $XX Can think million Ryan, expect available markets new products them help available Good they're the that to you in when which everybody. the mentioned understand I Hello. fully you you And in now? quarter. have did afternoon, globally?

Ryan Napierski

yeah in The $XX million Sure, Doug. spread - so, Yeah. was cadences. many different markets really the throughout different

aren't of there. I'll ones than kind outliers maybe more to So the that point

Nutricentials, Mainland US, the the available as again, now and So most available, now in exception of in China is have Boost Boost most with well. markets markets

that product two it's markets looking So that those of at. big in we're kind

Doug Lane

a is moves you those are half Well, Or of new the event? into Is products. a that markets. big big part And Boost it XXXX? second think do

Ryan Napierski

QX for China, and part QX Yeah, second half for right. big US. you're product. - the partly so markets Those pretty then that are for in

Doug Lane

Boost you'll second to start you which be a going are of then in you like be being them product to supplement also this the widely And do year? sort talked Nutricentials? did and with Are going new available half of about. Or they you

Ryan Napierski

question. good Doug. Exactly, Yeah,

So global will are those Meta Focus - of both part will two preview and model Nutricentials. for Collagen+ be be that of Boost part use the the we our products Beauty and

rolling be know, will it out you and QX So predominantly, launching throughout early or XXXX. then second previews, half

Doug Lane

also on talking live got Have it, events. Got it. later And live to events moved to to you having folks year? starting scheduling this I'm hear about returning

Ryan Napierski

is we reach higher digital to our see than multiples the literally continue the you know, or, No, of events events. online on-site

So XXXX of XXXX but through anticipate we the level. level in still we're first at some predominantly and local not digital global would events,

Doug Lane

Thanks, Okay. right. Ryan. All

Ryan Napierski

Thank you.

Operator

from comes Steph question next your And Instructions] with Wissink Jefferies. the line [Operator of

open. Your line is

Steph Wissink

Good this the or Thank question a for on supplement collagen is you. from you business. everyone. beauty Ryan the within afternoon,

I'm and highlight, to going techniques really provide selling discovery for you and about a little tools less what emphasize If product? you're community that talk about drive demonstrable social products. to you're to of going curious talk your platform, somewhat leverage just of your how can a affiliate bit

Ryan Napierski

a terms Steph and to of our approach to beauty as a inside us believe Yeah, really in we're nutraceutical-based an able product, what to supplement company you is us, market. opportunity really mean, this we $XX product interesting for being balanced for billion disrupt is this really beauty I know, out a apply

it's field related great the around going We interest, are interest product know, receiving very initial line. be actually think the you feedback our good very collagen on and And to in so we're interested we products. social a from

of as consumers, themselves market. to Gen while demonstrable, so not drinking this can is know, beauty Millennial it's take Z relevant supplement it. topic you're I right, And and you pictures very think The people

that social voice, a - there's a a traffic There's of or that. on lot listening perspective. on of voice social lot from social so And

in really a this on think format really great a markets but the good social So by for the ready as the we're and product. in think price we way, points, drinks and and the target doing, we're both will be we're doing place depending interested be powders market that it'll well. And I to priced

Steph Wissink

That's great. That's And for trend. innovation started your actually is question social which listening, be mentioned. your you, product more had you I but you pipeline seems really not second helpful. on around But analytics, to and about talking only robust, more

So of more can your strategies market been you that you're leveraging a or you talk or digitally planned what know about maybe social that how from hitting business, then come you learning of with have a manufacturing, three-year a past multiyear are little versus the in plus bit more directed two would device and listening consumer products can interest own to pipeline?

Ryan Napierski

Yeah, and Steph. I question. mean that's that great a

digital market. the with way product is acquiring trends, exactly digital these manufacturers really market some social going new gather think you're you market voice they're discovered manufacturers, our voice, platforms of to we're strength to much the really footprint real think well. listening right, revamped social I quickly our surface. that social Steve foresight I the competitive have Joe real-time our to a in to know, and being is, manufacturing even as through with our of tools, And with the go-to-market identify ecosystem, and of back of come Ritch's able listening that global starting pipeline come data as faster, we've business digital Dr. customer more innovations social to, getting Our out Chang and or able advantage Hatchett And with innovations with we're now pivot team to leveraging to and that listening or of together our

Steph Wissink

one attach me early know I as well. element a Boost. great, That's But for rates. question really a last you it's is quick that has real consumables compelling very just know, product, with on

previous of So I consumables wondered talk maybe relative of your in can in days to seeing attach what about some you're devices? early if terms you

Ritch Wood

Yeah, thank you.

of loves know forward. able sort key the razor Steph, where sell someone advantage purchases. a our One device, still blade recently seeing this just you - us of We've who differentiators the and you going we're Very one that on as now being they model consumables get will for is has launched, competitive to Boost we of good. know, purchase so to real follow continue early.

They're Ryan, that? margins sticky really add results. very you to great like would and We seeing we're have products. great anything consumable in to those

Ryan Napierski

Only what's years after that do beauty from two stride, about that time adoption, like now right these systems is launch. LumiSpa device interesting they in do found - really is, mean, they I take we full an the

know an value can relationship And of side after, really you grow. but so real know, continue that strategy devices each well. kind we will really Ritch's expect the Collagen+, of I think, point, are interesting lifetime just I the you pairing consumers to to expanding device. system years by as or three those know, our with I guess, of beyond we're this, where It's you even we Boost associated, really, to consumables And benefits direct value the related systems looking we're the finding mentioned deepen

Steph Wissink

much. very you Thank Very sense. Makes helpful.

Ritch Wood

Steph. Thanks,

Operator

And the Astrachan from of Mark question line comes with Stifel. your next

open. is line Your

Mark Astrachan

Thanks, think guess about to back you as about partly and purchase if sustainability progression, the and get sort everyone. well to really the to maybe things year. exceptionally And ask a you EMEA. we give and are kind key comparisons take and you the a and beyond, talk you I the the know obviously, know driving of products of think maybe the as afternoon, social because how know, bit and I strong kind that you rates some could repeat know, of about step sales difficult wanted And, selling you Americas of you're willing it whatnot. more growth go the through guidance about just this if in

Ritch Wood

question, It's Hi. Mark. a great that. Appreciate

it's comment the by year. one of know would beginning into of came know, things as well this cautious You you I very we first are the as we of

numbers, customer quarter were West. can You very, the in sales rates those the you high encouraged leaders, lap very strong. know, be And could the continue to first we our very numbers very, that we see with

launches We have of throughout year. the the product coming strong rest

So set we feel like up. we're very well

potential. see lot You the that know, really to enormous market, growth of have likewise, the a to tapped markets and mean, our largest that we I fully continue in one haven't strong potential. potential EMEA direct these US selling being

So sales effective results the gain to that quarter, social We more expand. going in the traction very we and and at will way trends leaders into see promising continuing that, very but the continues here key our forward. like encouraging strong become commerce base and first be to more more and customer come more see

Ryan Napierski

just Mark. and that, on building Yeah,

macro You real start continue you eCommerce would an commerce out, influencer by far really, as mean, forecast largest social perspective, know, and macro merging trend, as commerce know, we businesses you're industry at when the level China a social of marketing I from I is the to together.

runway Ritch's long. social - the disrupting eCommerce very, is is to so point, and commerce very retail of And

only markets. the we're I portions just we the a of then the you really at Americas the we've micro of into within go own that our business, know, in think that tapped very still, those at portion of level in if beginning trend. And West,

a it that's kind out we're markets of And the are with continued see Argentina the people further migrate a Philippines. in Australia we in force, know, kind the pops the evolution that or And leading in this commerce in And we sudden what's then seeing so the within sales that in of on that fortunate as of adoption social pattern already and model. see is UK the great. global and going up or all you

look looking will globe. - and the business the a And it commerce the we'll more that the macro will almost that more move advertising global of going to growth. the around at moves there. that paid - in commerce. of appropriately play to is as we're try model social the norm static think away position model eCommerce from last just a really years It's towards the we continue a a XX to continue to way So just we're But model, way Skin, business within at be Nu I migrate would at commerce be level, more fueled social

Mark Lawrence

Yeah. and buying. in gives one they're I'll is EMEA just me One comment. confidence Americas thing add what other that

So And the growth. really they devices and what buying devices which transacting is, of fantastic. socially, and they're are that's a consumables. driving lot But is

of there. be in So we're three all with top consumables are core more core in devices. the that products selling purchases That in Americas products inside. These the the are tend that the bit to me momentum top encourage confidence and follow-on are gives devices, selling EMEA sticky little seeing products the a

Mark Astrachan

dog [technical very helpful. Got difficulty] it. helpful. That's And the that's apparently

Ritch Wood

[indiscernible]. He the like - dog

Mark Astrachan

Apparently.

yeah, home, right, So wonderful. working it's from

we as know group get know on seen lap And that in about maybe growth, you ability grow guess, expectation quarters partly I meetings continue the about trying changing do meetings, hasn't I you I growth half it no it's how I base Boost, think of it the the to you now the market? be the I'm for to accelerated and I was second just of just back back market you the to I'm more you in less of just that think Mark and I in surprised where the a to of row, reflection you've the your a would said there? kind in the dynamics that China? another think in think suppose So the follow-up surprised it mean group year. sale then historically guess couple a grown off for of quarter.

Mark Lawrence

Yeah.

no think feeling are on and optimistic but the there's product question we're adoption, the that was per I think top, two in upcoming this with and the in the growth West? guidance the the most lapse social our launches KPIs commerce, raise. know, one the your mean, comps sides, I underlying as businesses, in question you I

China that ecosystem is large we side, being question there's it enormous interesting, yeah, model as with said, there that such I in commerce in a China On the that's the because the there's there no social potential population, ecosystem. digital with

a So there. strategic we see fit

that us, it in in evolve was more business. different this And right market For how China into is continue it's unique the continue sales a with we taking that, of model others, optimistic the that that what's strategy version to the really and to direct China But and in that you we're because continue more a time. our applying Tencent will to heading local social direction that's commerce apply about do we're we're direction. the move know, investments as traditional and we

Mark Astrachan

right. All it. Got you. Thank

Ritch Wood

Mark. Thank you,

Ryan Napierski

you, Thank Mark.

Operator

[Operator line question Lane Research. from with the comes And Instructions] Lane your next Doug of

Doug Lane

recognition, the leader that on be in-person taking could in thank I And of the have me the sort is some motivation, what for you social you to about think right new events social would - leaders' for events. what Yeah, follow-up the And was how what of model? role the changed? move important sales sales question. I the just thinking has color in-person give and I this commerce been is training so helpful role to commerce, your answer understand but the

Ryan Napierski

now Yeah, sales the is were be the really know company, transactions, and facilitating you to set the through the we of think we're a right, company. a our evolving. And having flows of of Doug. sales the But sales role kind digital-based at type then a and the leader is you increasingly role doing company base, the sales bigger those know, that on the up the jobs Zoom and is, evolution funnel this XX% same, digital yesterday of play works. know, in you the you that more of know, to approach directly seeing the awareness, first the funny, awareness, you changes while around force how We of building training you're remained it's the some over where I traditional digital speak to know of it's leader to kind in the motivating, done company, reach, that and driving leaders so to - revenue company, through terms are of transactions as discussion the

so really now And upon distributors more does there and because physically, focused and the transactionally. their more technically, to of change is - potential that's name products entrepreneurs distributing the less affiliates, change - consumers, attracting from that on they're and that company job we why where the

amplifying that So social and still reach and drive know, no strength. But greater expand is that of business you through the at our question the of just the our a to there's much shift. capability awareness that's the really person-to-person in aspect We're level. a main mind

Doug Lane

I Yeah, the that know last it been doing is purposely a And you've over this several big years. change.

So sales $X.X at Would customer say plus you million? while number, your total looking the your in that XX% that of represents quarter?

Ritch Wood

Doug, a our well, sales, good question. Yeah, it's

years that our focus buying drive active are is Our was five we customers but that customers, who with some after not only is that our are quarter, motivate with product down some as three to once to mean, are products our following-up. we who's customer I has ago higher sales customer, a you all through higher, than dramatically, substantially four four sharing some times the ago. others, years through say, continuing continuing see runs to that are line, but base focus, a doing in of are using who business a buying purchasing some to to continue and every active number of sort. our it know, customer or customers whom, customers grown for flow just XXX,XXX, go the are really shifted that And product of And base about XXX,XXX that grow. twice,

have opportunity much products so commerce, And really more a with we to that larger. So is they love. we really, that an lot we touch social the opportunity think have because with reach customers

think grow now. So we're at as foundation to see is expand really we the we set to from right continuing forward, this where go I

Doug Lane

model, consumers and purchased get the did members mentioned think old they of how of old directly business of force, years it who trying sort you the numbers peers road the mean, much operating is Is how are probably days. social right, operate in and and ago, I and your fraction for I your to tiny to used that ahead under of you've which your under of legacy the done a much down model? of products sales far just we, from your you commerce because, Or are the pursuing No, that's for most it. many feel purposefully a I'm how customer know, model down and not include is the this business? old how distributor, to of just - your operates roughly new

Ritch Wood

I'd that, in I our say you say, move. know, experiences, the more still the a customers not simple, slowly. leaders tools better own quick, that the of our make, lot leader for company where transactions we'll digital you happen a through commerce know, And goings shift to There's with we're that that see to and as between we're more do But their to coming and continues this and of sales early still early transition. continue in trying would of innings sales we experience. more customer more and responsive, shift shift that

Doug Lane

good it. That's All right, thanks. color. Appreciate

Ritch Wood

your out. bullish optimistic really We're, business a tell, Doug. appreciate we're is the every the way you on and attention, the rolling story And year follow-up in you, good to on right really our seeing, questions. questions. XXXX. further on trends and really, can really of thanks Thank now, And we have we're think for as to if for one anybody you has I your happy we

talk joining again So and you us for we'll to thank you soon.

Operator

call. This Thank conference for participating. you concludes today's

You may now disconnect.

Nu Skin Enterprises (NUS) 6 May 212021 Q1 Earnings call transcript