Nu Skin (NUS) Rallies on Impressive Sales Projection for Q3
Nu Skin Enterprises, Inc.’s NUS estimated third-quarter 2020 sales numbers appears to have been a treat to investors as shares of the company have gained 9.6% since the announcement on Oct 1. Management anticipates quarterly revenues in the range of $700 -$703 million. The projected figure is well ahead of its previously provided guidance range of $605 and $635 million.
Sales growth in the quarter can be attributed to the continued investment in digital capabilities as well as a robust product portfolio. These factors lead to impressive growth of Nu Skin’s customer base and sales leaders in the third quarter. Notably, digital transactions contributed nearly 90% to sales during the quarter.
Moreover, the company is impressed with its improved geographic balance stemming from the ongoing expansion in the West. Also, sequential recovery in China as well as solid performance in its manufacturing segment bodes well. In fact, Nu Skin is optimistic about growth in the fourth quarter owing to the aforementioned upsides. Also, management is looking forward to preview the ageLOC Boost device and Nutricentials Bioadaptive Skin Care line globally.
We note that Nu Skin is focused on empowering its network of sales leaders and customers through engaging technology platforms among other initiatives. In fact, it rolled out online leadership, training and education programs in Mainland China for sales leaders. Moreover, the company has been conducting a number of promotional seminars online.
Also, Nu Skin’s focus on enhancing customer experience across various digital platforms bodes well. In this regard, the company plans to launch VERA, a digital tool during the second half of 2020. The tool will provide personalized recommendation for its products to customers.
During the second quarter of 2020, Nu Skin launched a new customer reward program called enJoy in Southeast Asia and Mainland China. Management expects to attain long-term loyalty via redeemable rewards points alongside improving customer relationships with the help of this program. In fact, the company expects to launch enJoy in the United States during the second half of 2020. Notably, Nu Skin’s customer base increased 29% year over year to 1,499,900 in the second quarter.
With the help of advanced technology and well-strategized product programs, Nu Skin tries to capture greater market share and maintain growth momentum. Notably, shares of the Zacks Rank #1 (Strong Buy) company have rallied 26.3% in the past three months compared with the industry’s growth of 10.9%.
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