NUS - Earnings call transcript Q1 2022 | Nu Skin Enterprises, Inc.

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Operator

Good day, and welcome to the First Quarter 2022 Nu Skin Enterprises Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Scott Pond, Vice President of IR. ahead. go Please

Scott Pond

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

Ryan Napierski

vital coming landscape, the spite advantage rejuvenate disruptions and lean Nu thanks our transformation XXXX our to afternoon, Scott. gig for in on social Thanks market. take the and in in to emerging today. the in commercial February. in of we of we're Day trends rapidly Hey, growth Investor our We out focused product we is economy acutely evolving long-term sustained All near-term our of everybody. call strategic such personalization, in with as laid business that remain at seeing the commerce into we joining the each Good Vision you these evolution This market success of as years. order

quarter, $XX exceeded guidance million, were of including the of high strong For results, the million. prior by report pleased which approximately revenue to we end first $XXX.X our

above our due prior to came beat. in large earnings part revenue share per slightly the in $X.XX guidance quarter First also at

and side Our outperformance Meta and was both driven continued effective to by product solid and We're Taiwan of to These rollouts performed Collagen+, China, Europe well the encouraged ageLOC quarter. gains product results XX% Beauty helped Focus considering with further the introductions from in continued in of which challenges. the Southeast Asia U.S., the disruptions, in two lockdowns wellness revenue business, global in including XX% our including improving and particularly strengthen the economic global pandemic year-over-year. increasing conflict our

wellness you we our factors products. X, having the me some recognized let in operations with on world. deeply limited that a have experiencing global Now give associated remain are in situation our in key both of our market, many these and March unique beauty suspension events in announced the Ukraine, war the and impact the EMEA profound potential of this of EMEA the of In some the heightened thoughts brief long-term uncertainty we substantial Russia On saddened and regions. Mainland Unforeseen softness in due around world. to Ukraine were and view China, for our couple on in unfortunate people optimistic part and distractions by are broader China this

of for continuing other our and broader in few a global economy, Taiwan. more given QX loss EMEA Connie and in of outlook will latter In were initiatives by the bit uncertainties approximately out growth social to and first with advancement XXXX return U.S. annual roll part anticipate $XXX and the impacted minutes. COVID context And Collagen+ remain and other a regions, new results. just China, lockdowns to in the operations million. products our contributing of the Asia we of However, commerce disruptions Meta the by to quarter growth related our in the factors. in coupled the continued encouraging, Southeast these and momentum provide we're and and lowering other impact Nevertheless,

Now, focused transformation the the Nu in our business XXXX. with of challenges, short-term on Vision of spite we this remain and

more provide me that. on just context Let a bit

are While product still in engaged in this commercial fully wellness, the capitalize and and beauty transformation the the commerce, to in strategic shifts early gig stages, we upon of major personalization social economy.

a selling dynamic beauty integrated direct world’s powered affiliate traditional all our opportunity landscape. about from leading for transformation the company platform this evolving our to by wellness win company defining Our to new and framework is in becoming

London global and our first our and the align imperatives, with For leaders in three powered digital top elites our with Nu preparing in to meet affiliate commerce to XXXX strategic around ecosystem. Empower team sales three time social our are Me, years, we Vision

briefly Let me progress on about of each the talk just three.

Empower LumiSpa in personalization, of body to into key Empower Me needs, early wellness beginning QX previews strategy beauty insights individual is care by iO, and care limited followed consumers provide Me Our the with connected skin beginning iO of deeper Body and QX. intended launch some their devices will a with aspect in be of IoT

enhance these with enhance product and of to forge customer consumer devices value. and personalization lifetime curation, loyalty content will and company unique the experience the Now input/output improving connections even stronger

new from our And Vera and The person-to-person and recommendations authentic Vera digital-first media our social and global further out to continue end by refine affiliates wellness Next, beauty pricing LumiSpa our affiliate roughly the of the cadence we builds journeys. quarter. around introduce we powered personal beginning AI with we first key train scale to guide model, leverages from a markets are paid machine through the build to product with and their introduction iO of and sales of model. ecosystem embrace Stella force the amplify apps towards XXXX, our consumers personalized around app commerce promotions social learning thirdly, to new In globe on our commerce this as in, our marketing, Western leveraging social XXX,XXX learnings reach. leveraging roots messaging

information manage languages the and better the be in and to and access businesses, app quarter build capabilities enables While XXXX. added all will the and introduced to of their apps Both devices. their Stella other end mobile brand tools affiliates throughout from English easily key were at

you help drivers. way, progress transparency our committed February transformation key we providing to along into in additional better and greater the Now to understand measure

will as who ongoing describe with. And is Our reporting first notable a as which a future I'm tons leaders. and related of annual just reduction world more of tons products sales paper initiatives. of to the flexible than a released the report also we force, basis. in sustainability plastic which couple improve that all sales lives our of and our the share with to actively Connie XX we a of number live. segment change We ESG to including products our begin broader for more people's in much bit pleased of paid a pipeline where due customers in progress we on affiliates, who to act is recently several XXXX, and report than seek highlighted in efforts our XX more areas, key to other packaging XXX changes fourth minutes

and named Communitas social within to to of organization top continues of number tremendous lean In out packaged Awards also commitment Nu XXXX, for recently overall. the corporate companies responsibility. our where Forbes pleased further diversity, received goods be employers reflect two and as world's we to inclusion Skin our equity XXXX, towards to into entire best addition, their the we're as companies as we well number XXX for list rank America's XX female-friendly list midsize two of

future new and also broader opportunities arising summary, China, world with economy, we there as our Nu while there are about evolve. towards Europe in the So Vision the are continues work to near-term optimistic uncertainties as XXXX. I’m

capabilities in really we confident beauty model find risks enables company future the the new resources transform, is built as our becoming integrated which early pathways agile affiliate to our ever to continually of world’s Vision dynamic and leading a wellness I and strong is foundation to powered diversified, Our for growth. am globally opportunity platform. to by on phases and us Nu helps as our mitigate as XXXX, and and In leverage

to additional provide on some So with turn market insight over performance. to it Connie? that, I’ll Connie

Connie Tang

Thank you so much, Ryan.

detail Ryan earnings share to more I performance by to about earlier. information Affiliates market the that Paid our segment, provide on like Before report mentioned I’d our addition

includes on as to are acquisition, customer in we power the average any activity It’s attracting share of important social commerce we just are and continue who And the customers lightship Affiliates, in a to three an nurturing Difficulty] indicator for purchasing important month new our our Brand of focus we will the products reporting bridge relationships number leaders Affiliates, of reflectivity going model. report during Brand The how as is also our number Brand Affiliates all that providing accurately who primarily Affiliates [Technical Paid this to number months leader sales well we employees an As qualification quarter. community. are consumer the business. in of certain achieved of entire requirements compensation be sales reporting forward. Instead of quarter. sales the quarter, last and note more

has Nu includes and the purchase not number customer Skin registered during changed who Our to those directly quarter.

information within a Collectively, this the believe include this does at before each or who Difficulty] whether organization. not products quarter a this participating our sales picture our through [Technical levels, from it sales reporting in leading team, of provides opportunity complete Just we sharing more be current member force. business customers directly buy a

segment our U.S. balance by the quarter, global efforts Pacific progress Latin as specifically factors revenue to from Now in multiyear U.S. building be solid the base. in when Collagen+ coupled offset the America. and Asia year’s our in The Southeast look subscription Americas, the carry we to results in with XX% our macroeconomic grew market Americas, for continued forward last the one, quarter continue momentum launch distribution. we to market continues at growth our we our In growth U.S. by in results,

our drive model of to We continue further adoption in U.S. also the commerce social

pressure, [Technical who America training with of we Latin social leaders Difficulty] support continues them continue adoption macro provide to the to have commerce. to Now, face

which in adapting do U.S. In we believe generated and the Latin same America. can in Playbook, we are addition, results the strong Collagen+ the

midst currency. EMEA greatly segment war The in in the in created entire disruptions across As and is impact is the constant conflict major this of is XX% Eastern the down region. has the Ukraine in Europe,

out have much do throughout business spent Ukraine. operations and during have this in has go their to From impacted. turmoil hearts difficult of directly Russia our into all And whose those Ryan really as time. truly been those to perspective, team’s we lives and mentioned, time thrown support EMEA suspended Our a resources

Our leaders are ongoing business in identifying opportunities to the the despite conflict. momentums EMEA region, read those

lockdown, mentioned, lockdowns in results anticipated Yet the Ryan due COVID-related was disrupted our has Mainland, strict furthering and team events during the quarter disruptions due and better Shanghai As frequent product market to in requiring severe the other of part than to deliver areas factors. sales the able and online under activities pivots. promotion. to China been business effective promotional continue other to and be

customer last to revenue growth [Technical of growth by the but broadcast through Taiwan, Hong Kong quarter, looking of we ageLOC, some the shift the the Taiwan a are to program headwinds with Enjoy strong The shutdowns China, and teams quarter, for one As Hong constant LumiSpa markets has Mainland, in in help to we was we we during Taiwan shopping market. currency the the in impact COVID our continue customers but launch lockdown mitigate challenging live hardest new been stated led hit X% Kong momentum. event. our with IO forward of acquisition by Hong Taiwan strict the able of X% customer segment. anticipate to in Kong performance Difficulty] with success were loyalty

the this are in commerce shopping from social learnings we this inform organize how drive to market. We events virtual future help growth and event taking

lockdowns. regain While start half in ageLOC was down significantly this expectations. of able and Meta a with due second of the market The the after Japan a strict catalyst was COVID to exceeded that for slightly, the was quarter, sales to some launch momentum slow

increase we later customer are new local continue experienced we a subscribers We also Meta the sales will quarter slow and in in and ageLOC to by focus start with positive challenge, created in we will X% on highly is down to quarter, a which momentum encouraged launch. TRXX South up a typically and currency. run Korea successful subscriptions. market. acquisitions XXX% second In the ended the signing And driven the quarter

Southeast Asian we currency. constant in grew XX% in revenue Finally, Pacific,

full LumiSpa previews key ahead the was ability during launch. launches restrictions our of Combined of of the preview long region, Meta our leaders ahead year. to energize and lasting throughout sales our IO the the Meta ageLOC COVID One the loosening some has ageLOC drivers built this energy later of of of some this with in

launch Collagen+ ahead, and of ageLOC first our third the the quarter. in and are with LumiSpa across the beauty global Now, among launches our device, continued upcoming Meta we empowerment looking building our energy IO markets affiliates with connected

We leaders we to our also digital ongoing anticipate build available adoption continue on remain nurture customers some the them to to Nu train tools and we the and of and are commerce confident their the execution ups and focus and Difficulty] Vision our to downs We support in transformation our businesses. [Technical of social making in to our XXXX. midst business address

turn I’ll financial some performance. review to details over our it Now to Mark Mark? on more

Ryan Napierski

just that analyst had our on a let We Connie, I to summarize. side, make sure connection me want so difficult and the heard.

any additional of on couple that. let we’re just during answer Q&A happy then And highlight So to questions. quickly things me a

But we can really between more leaders. pipeline as this it It’s so a is sales we data happy key customer a you’ll in that. new more and described transition that. Connie indicator commerce number, social about talk first talk So to about our that be Q&A that affiliate paid to sits seeing more again, in monthly metric just and

growth China, the obviously as we business. the somewhat to but predominantly be of their the markets. geographic of rest Guangzhou, are Latin to XX%, all really strong continues she down extreme pulled conflict a bifurcated path for quarter us, in was talked there in which that lockdowns up major real Mainland, understand. quickly, On a the we Americas front summarized related extending distractions growth the the be by now focus Beijing, She to the was about and in where as but Shanghai U.S., these the and major continues of America be to the down across parts really EMEA macroeconomic environment which XX% just continues have through

we with that we product the which new some Hong were to good guide introductions and there. we down and be but with basis. continue TRXX related some But seeing taking result of with We’re with Japan down optimistic year-over-year as struggle. X%, encouraging a Kong Korea continue pleased slightly Taiwan X%, like. some as there. signs struggling down up a lockdowns, momentum and on were activity we promotional to to was was subscriptions are still business the about

opening which little there also and grew was predominantly I in the think some are Asia lockdowns a up Meta for spot related a South although bit there. continued key to us bright XX% previews Pacific, more, the market

to So had that, that. And don’t summarize? you the that’s just little go a brief if with summary But on a you deeper markets. questions on again, during any Mark Q&A happy bit why

Mark Lawrence

Sure. and guidance. joining provide And Connie. then brief full call I’ll initial XXXX of thanks, you year and projections update give for thanks review And a to today. Ryan. Thanks, QX our QX financial all

For additional detail, our Investor please website. visit Relations

in to a X% currency our negative XXXX, compared QX in beat by For were in the quarter prior share the constant price first XXXX, million X to with We impact late In was QX benefited of X%. was per an sales results quarter down the $X.XX. first our company increase. revenue revenue quarter, $XXX.X foreign expectations part history. Earnings April in of with for currency quarter largest which

basis below LumiSpa for the as QX gross global Our planned by new largely points was the launch planned LumiSpa we XX.X%, of a year the the expectations anticipate was as Gross compared margin sales Nu year new XX.X% QX was product prior well percent prepare connected XX.X%. This below IO with as largely Skin business of result of increased introductions. to QX. margin Selling throughout price for increases and devices gross for period. XX.X% our quarter. promotions the impacted was revenue XX margin device expenses implemented year in prior in improvement We the as core

prior expense was percent year. XX.X% XX.X%. the For as the compared in a General and Nu Skin revenue administrative core selling compared business, XX.X% expenses to to of XX% were

margin over $XX carefully of period. declined we our expenses. was for towards compared Operating margin the we focused XX%. to stated million in course For remain midterm anticipate goal X.X% of the year G&A X.X% the operating year work quarter as year-over-year, gains the quarter, We the as prior managing on

a negative The from year. to gain to is million $X.X compared prior quarter. as million the in lowest the was other compared income a Cash operation expense $XX.X line year. QX And $X.X million, $X.X expense, in reminder, reflects million a seasonally our prior a cash

in paid in during quarter, global supply to committed support supply $XX We inventory strategically to million the are our chain $XX.X invest levels inventory inventory We pleased repurchased million remaining stock our $XX million further chain dividends with in million of plan $XXX.X decline remain with constraints and as ease. of to the reduce and and authorization.

XX.X% guidance for to quarter the within XX.X% and to year rate XX%. tax Our our in prior was of XX% period, range compared was the

customers. which available short-term products Rhyz quarter Remember XX% Nu revenue were revenue that includes those segment, in Rhyz to and reflected impacted segments production supply significantly capacity customers. the on the of on Rhyz our inventory in was Our allocated Skin fluctuate can The sales many for external depending in to constraints. large declined our customers versus our third-party represents partners only manufacturing by external were the chain quarter. customer soft as demand continued long

up our continue to the Nu manufacturing supply generate overall Skin U.S. tax business that helping benefit entities Our core chain our by rate. shore lowers profit and

seek segment opportunities enhance carefully further to to this capabilities. in continue We investment our

geopolitical our factors, we economic increasing pressure continued adjusting annual COVID-related uncertainty, foreign conflict, Given and are the exchange guidance.

FX headwind of in to million reduction million and $XX as $XXX $XX strengthen. reduction a continues EMEA, in the reduction due dollar increased revenue by consisting are a reducing China, million a We million to $XXX

billion. assumes to This share a X% a of and X% currency impact XX%. now tax $X.XX anticipate We of XX% of XXXX negative billion $X.XX. earnings revenue to are of guidance per foreign to $X.XX rate expecting We to $X.XX

million, second to We headwind currency of share XX% of of X% X% to quarter $X.XX. $X.XX is are revenue and a projecting million to to $XXX per QX foreign tax earnings guidance rate XX%. $XXX assuming a

the making focus with your leading the questions. we while and powered And platform. So call new our investments and beauty will remain now right near-term of for up transformation dynamic on we the vision business by to wellness our the decisions world’s company face we XXXX opportunity becoming headwinds, operator, operational resource open and that affiliate integrated to

Operator

We will Jefferies. from question ahead. Please with first Instructions] question-and-answer Wissink The session. go now today [Operator Steph comes begin the

Steph Wissink

Thank recapping Ryan, to spread help think comments I model. feedback advantages available tools how afternoon, what through everyone. that’s in are that as as class you. your want consumer what Can just them maybe group Good you been broad then was thanks to data to on helpful. [ph] end focus And of for have their overall seasons to business that your affiliate loops. are the today, about tools just specifically, think intelligence deployed. biggest model, that those connectivity you part whether

If cohort. would talk you That that could Thank great. about be a bit you. just little

Ryan Napierski

Yes.

thanks bet, yes, question. You the Steph, and for

So, to had really important newer a that really guess, a I requirements. sharing it’s long for more one qualifications on company, more flexibly. be define group. affiliates are participate gig time, required of will for social for leaders important is and although with more them. really it’s for It to are focus of the a a maintain fairly, more evolve. is commerce is sales shares, classification, sales flexible and I but would a aspect, social we they the us place volume they’re focus yes, economy what transformation type Affiliates class or They much we’ve the kind the that Whereas paid affiliate have continues as you the

app, last Stella the I the of so tools introduced And app think the QX. and far day as mentioned, the so that Stella app or the just literally, I we specifically Vera of

products, So various activity their that predominant help starting the to is that connections through some manage we CRM and have we’re just will tools a effectively to them that roll them for share like. out tool

nascent so stage And And we offer tool to that in of critical the that. really very that’s it’s a them.

a We’re really We call developing product. MLP, minimum that. lovable it still an

the be developed. year, we much of expect this Now that will end tool really by more robustly much, that

et advantage economy, people think plays again, this we the I Uber cetera. interested flexibly there’re gig wise, more where what into group, driving, working of in kind far like about

approach And so structure position compensation this affiliate today. business velocity our gives the see to with much coupled that it flexible more

Steph Wissink

think second And I iterative cycle. these a curious an the versus on that’s really All what you kind the you manage and great. innovation. in can one approach. you right, bit your actually then of future, could more Seems connected have past, then the like of about of device is in you I’m we’ve what big known post-launch afford in launches, of more my a terms innovation iterative

through feel IOT of little So a or your you’re a maybe you approach? whether how digital talk bit about bit shifting through it’s your technologies, like innovation some other in

Ryan Napierski

a and curation. important our driven product mean, asked almost on I’ll comment. from Netflix it’s liken between Yes, I important see really the shift. – standpoint days from step is very a DVDs customer I question, be company and our this I’d you driven thoughts I’m I maybe share his kind part. persona strategic the Amazon In from persona shipping to versus to glad case, shift content it to Mark really few curation. this, a having because actually like we And an it customer of integration

– For coupled and personal we will offer will will their be us, more and connected needs important IOT both app device desires experience as these to be will with connected be upon personalized with that Vera is the that and what very product customer. able a devices the the the based through app

app the history. out personal wellness that they then preferential can And helps them purchase preference that their profile product a personal will needs into imagine and gives them, fill their recommendation have through beauty a so moves you where from perspective data

and So using and AI through ML, what buying that products then we can they’re process. feed recommendations

on through experience speak how the early as seen Netflix that we’ve very will in But the last a with increase the me somewhat it basic, terms significantly. stages, taking them. advance degree will we’re of new start And at again Lumi continue, a over lot XXXX, decade, Mark, maybe with the We’ll goes. IO so out management this focused is on see would personalization and for to so I vision to to the talk it personas persona build digital side? just years So the this couple going but why and driven is to and of about of continue be of journey us device, these product

Mark Lawrence

Sure. for will we data us And [Technical to about that customers than what Thank Ryan. should what I’m forward really those the forward. our the you gather be better know information excited thank we’ll you, And going our able our become question is products Steph. customers This most deeper facilitate company – is of our with with that this going understanding ever. probably for Difficult] help

so using that of They that If and could very I of the a next joke. when broad. face are product didn’t about maybe many with think could at all our device the perspective. week find things a voice that And that the out, a activated about had the their do I [Technical forward versus favorite help Alexa and next will time the the better And the our face, customer generation they of Difficult] that find, side for think were of right that what offers. they’re it’s the customers so so They spending in can Think enablement Amazon, we a better of that play on along it If tell five, we device mentioned. learn then makes personalization fast three that we product now my maybe make generation back They from their us alarm today we there’s to Echo XX% times much came you left customer. can devices there’s the your design seven side times much. a the of years better clock. back versus something Alexa music. do that

Connie Tang

we think content will well the learn learn exciting is programs is meaning created consumption company well into now. programs be hopefully about data as you’ll the that The we are but Connie, And to right for are about based generated, me that friendly more loyalty for – be can as that customer the that’s acquisition, this as user and about behaviors the operationalize process we we well put iterative how and I as it hear from me our for of implement really own I technology is how forth to the this, development. designed able And collected, iterate on a data on programs, translates and we and we preferences, deftly retention, the more improve company for customer key to more and and the more relevant as retention. that as personalize programs can execute both what’s as

Steph Wissink

everybody. right. Connie. Thanks, Thanks All

Ryan Napierski

Steph. Thanks,

Operator

comes Lane Please ahead. Research. with go question from next Lane The Doug

Doug Lane

the on elaborate is it the where geographically may is progresses? that's you what this can then what Mark, the everybody. to or and year afternoon, plans pricing magnitude affect going Good right. quarter be as All and

Mark Lawrence

about will even summer, have of that instituted QX. later the a early global world of the are around couple so markets year. the we that start a markets implement the that of year Yes, X%. this price the implemented in increase There in in Most

Doug Lane

just you. And give difficult of most April to April us of was? Okay. wanted then your how Thank I of seems you there if reported channel. the a see thread qualitatively just characterization have could in already, be your to peers and very

Ryan Napierski

right varies were the probably promotion think product on simply that to at because it look I quarter what now as and mean, the so – which schedule Beijing launches or our Yes, Again, focused going a three market-to-market. teams area, so in we're is is unfolded, we Doug, they're areas our where of we now, from our major most so unfair China as I we're the month hearing far is the and single Guangzhou them hearing probably watching and from lockdowns China. Shanghai, media Guangdong, we're well metropolitan these broad are in and introductions

how and of where what it's our there reason focus significant be. is now, a with severe to of than there's as to that's say watching why. understand is that, to we're a other guide But, is it lot the large and hard it's to why do government to So, going comment going uncertainty

Doug Lane

started No, we in a is that any coming meetings? makes sense really team to the since elite me. And mentioned London. up globally meeting is meeting that? talk size? live Can big You this pandemic the How first about of

Ryan Napierski

No.

ourselves So network on of the Great the wave I to Doug. reiterate the yes, Doug not style. heavily a from future digital-first. We our believe want We're more type investing of see that's standpoint. very question, the front. traditional moving of do yes. marketing future. And view scale that back digital We is towards

want that as I met this align, we in-person I get while team elite so, clear. just such And we where with it's we've activities been mean, to believe since are years three leadership. important be to trip our certainly top

are investing to qualified motivation trips pretty as many us. going far important geography. of that very lockdowns in But do in sales its the We again going in in the were that need still that have those model on. at been for to out we place that's of stay larger a extent And future, type So the predominantly we about half those as approach. meetings, the travel from that broader but leaders the I think that it's back And to and really it, in digital-first kind so helpful trips believe the that limited those we well as parts turned west, predominantly Asia, able past. in there's a resume on we it would world, for been basis, be severe Success those the in alignment, and are those played imagine and meetings, on have west. as the is our because there's be motivate a to the a convention it, has had in not haven't

Doug Lane

That’s Ryan. Okay. helpful. Thanks

Connie Tang

virtual, one may, there what lot the location version it's to a may or new shift think I be hybridized going and walls think a even and And hold world us in-person. for I going the a I balance exciting and be of a between If us. more how more for think of to is digital will I forward scale beyond of opportunity people halls the agile really reach

been into So encouraging markets only to due interesting, across external success some that. not we've seen we are have interesting, leaning our And who limited factors. but

Doug Lane

Connie. Thanks, That's helpful. Okay.

Operator

Stifel. Astrachan with go ahead. comes The from next question Mark Please

Mark Astrachan

can you all thanks. hear everyone, me right? Yes, Afternoon

Ryan Napierski

Yes. Mark.

Mark Astrachan

volume but talk volumes guidance of and pricing how obviously don't X% think think sell Mark, pricing get the guess, you. release? the how was know in underlying guidance, volumes, for that's I press of the the from curious, to out was about, guess the pricing, of relative had of of you called on was I I just Perfect. but we kind original by in about contemplated of to inclusive just would also benefit I'm some also everything the going in just to head impact, I'm about the the trying updated, but impact the What first that the not and pricing sense that revenue the impact a world. And else you

Mark Lawrence

saw of way Yes. range. Thanks kind of high our the that over the we of was until of weeks due of Mark. that $XX couple million us quarter high to how quarter. increase. the revenue surge can't then towards end revenue price to quantify were range the you much that the We a the weeks last couple exactly of the the the of It's of the last end beat all And up why of trending pushed

$XX we somewhere on quarter, the the You until was – the to were of weeks in can up couple range million last somewhere million where argue that maybe or $XX it based of trending

Mark Astrachan

then increase? the And price

Mark Lawrence

guide, price increase, contemplated we our Yes. gave guidance today. the in updated original in is But it our decided guide. we the that post on And original

Mark Astrachan

it. Got

now. the it the numbers, then how given Okay. just you I'm just sense. did I you're on too, the got strokes on broader reduction thinking And Yes, by a going revenue guidance what geography how rounded pretty about number what's curious seem sort impact you're expecting like makes of there, from standpoint guess. from

Mark Lawrence

sure. for Yes,

easiest what FX is originally So with point guided. about the one, one had worse we than starting

million each of rounded, XXX intended have ranges the and, breakout those on about So right. to and to the side numbers. be We be works of that out $XX is again, do somewhat

And about it and seeing million. impact when was seeing that. China, to a business was then we we in we were And EMEA our We about we that, $XXX contemplated $XX looked million. significant at it looked are as what at

plus depending So, million them, but $X of all or to overall minus those size the numbers are million the $X $XXX million. on impact about

Mark Astrachan

Got it.

Great. appreciate Thanks it. I Okay. all.

Ryan Napierski

Thanks, Mark.

Operator

[Operator Davidson. D.A. Instructions] go The ahead. Weiser with next question comes from Linda Bolton Please

Linda Bolton Weiser

are you? how Hi,

Ryan Napierski

Linda. Hi,

Linda Bolton Weiser

Hi.

still something had margin growth thinking? in growth like just that of it. Can you performance, kind about was? that something you when for think missed guidance of said the Thanks. what I talking given I Sorry, you’re were Is margin margin impacted that a the XX%. something, range And what about you to But XX% then quarter. repeat you year

Mark Lawrence

you for Linda, thank Yes. question. that Yes.

We of for new the as into gets then have above as did of to originally XX%. in the that performance guidance launch device. gross I And of can increased drag still be our of in LumiSpa’s the that There’s XX.X% believe bottom the our that anticipation quarter. sales it we that those in that expectations. and to the connected down that still inventory LumiSpa’s And And of quarter, year promotions XX% are in with did those of – promotions performed our that – LumiSpa us end currently the shipping. the the guided the margin model a range, get towards So that plus reducing original those far would we’re we but to IO range.

Linda Bolton Weiser

morale hard of because do anything of promotion is that I some in continue a sort the improve Ukraine all is me be sales today could mean, I can to there the the past? you type for anything that at company then comment And about Thanks. there thing, dampening definitely you reported EMEA said know just because of you what Okay. Ukraine Is but war. you there another it’s on can the do? like things did a strikes the activity? this any dampening of could you can the time. just thing It war in used or that maybe

about So type past your experiences can you of with this just thing? talk

Ryan Napierski

great it’s a No, Yes. question.

or evaluate, we are to their Linda introductions activity just, as you we at said, do additional today. need we towards can we think as that Are and number yes. and able what what is of to level? do Romania, ignite excite the think the can we one, more we Hungary, if you market? sensitive customer in product answer And the neighboring are mindful the promotions But And Poland of bring that? Yes. we there mindset countries particular, mindful be of the of look are I likes at in certainly

away. And it’s as series so year, is have for conflict further or current the day do affairs. of XX remainder normalizing we think the further a XX, now of state and the And unfortunately this getting I entering, we’re

utilize to we’ll the a do to we morale to improve and the so the in into But more do generally. of the country. in remainder throughout – those of help responsible be we able will energy people framing year And leverage manner, ignite we very mindset market. that levers it anticipate many the the given would But the those want we to

Mark Lawrence

a QX while two might results XX%. I year-over-year is add the Linda, market year are up XX% And is, still back negative that look on

have joined we’re who business. the so still leaders the And pleased with

is going operating with way We’re world, the we’re still business fact maintaining pleased and the XXXX. that the in this even all on much with on the

Linda Bolton Weiser

about the kind that still the rep of been that about. the is products the consumer or one something to app? ask they app? you consumer-facing have actually just apps right just through like, a And they through the enable through order some does Okay. kind you’ve or on of whether can talking website go other Or Can order to your do clarify

Ryan Napierski

it. to – love It’s like It allows from a really there you you and right the directly that It app. to allows that. it some go in app. And progress – if out you allows et I provides you you you you consultation. skin from take to I’d and a a cool, to cetera. to download wrinkles, you It selfie then downloaded, personal Yes. buy asked a encourage you you pores, recommendations also buy fill measure and that also, haven’t does skin find the it allow

right product and call a functionality pretty building we upon good lovable it’s has a minimum So And we’re in but it again, now, experience. good that feature it, what it.

Connie Tang

as that of app sorry preferences product whole terms through The app what through will well information taken to call it to I offers consumer personal journey of is a and point for account questionnaire experience. It that this is whole coupled in discover the to customer into skin. camera every that. The point as app also access your picture and take have really, your visually democratizing it are for of allow to needs this and for to kind – both format, a the of through information, with of allows

one, part as number at think same it’s engage I they So consumer’s every fun it’s the and we really super time of journey hope us. with

Linda Bolton Weiser

Okay.

Thank sounds you. good. So

Ryan Napierski

Linda. Thanks,

Connie Tang

Thank you.

Ryan Napierski

within know you the want landscape. you’re and the selling just tried don’t puts there’s understand as possible. longer. to of Vision really you we little near-term way. that busy covering know February. along a direct That’s companies to It as there. to lot vision. are team, want focused But to looks analysts the takes transformation. many not we to that committed I And as on why we Nu the thank to We in you within XXXX transparent We go. just point headwinds foresee be of a just in too transformation very be a I everything do say It’s out But I we conservative. like, out management easy, multi-year view. We laid call acutely the and want to vision we’re to went do and always broader And We a the as bit economic this I and you apologize know commit from

participating for call. And the time. so, again, for Thanks your in thanks

to feel free calls to additional Scott reach Pond any have to out, like to you If reach or or myself. would Mark,

you but end. as happy wanted to to questions I we again, think thank we’ll any time. And that, go, answer for We’re your with just

Operator

The conference has Thank concluded. now for today’s you presentation. attending

You now disconnect. may

Nu Skin Enterprises (NUS) 5 May 222022 Q1 Earnings call transcript