Nu Skin is Poised on Customer Base Growth & Product Pipeline

Zacks Equity Research
·3-min read

Nu Skin Enterprises, Inc. NUS is well placed courtesy of its robust growth efforts, which have been boosting investors’ optimism. Notably, shares of the Zacks Rank #1 (Strong Buy) company have surged 41.8% in the past three months compared with the industry’s growth of 9.2%. Moreover, the stock has comfortably outperformed the Zacks Consumer Staples sector’s increase of 6.5% during the same period.

Let’s delve deeper.

Factors Driving Nu Skin’s Performance

With the help of advanced technology and well-strategized product programs, Nu Skin tries to capture greater market share and maintain growth momentum. In fact, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. Notably, the launch of the company’s revolutionary ageLOC LumiSpa along with the re-launch of Galvanic Spa device has been a success. During the fourth quarter of 2020, it plans to preview a new at-home beauty device, ageLOC that aims to provide customers with an on-the-go treatment for youthful skin. Additionally, management expects to launch a new bio adaptive skincare line under the Nutricentials brand by the fourth quarter.

Along with robust product launches, Nu Skin’s customer retention programs have been driving growth in several market locations. Earlier, management stated that it is working toward the expansion of its sales compensation program Velocity across different nations.


 

Nu Skin sells and distributes products through a network of sales leaders and customers. It is focused on empowering them through engaging technology platforms among other initiatives. In fact, it rolled out online leadership, training and education programs in Mainland China for its 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 bode well. In this regard, the company plans to launch VERA, a digital tool during the second half of 2020. The tool is aimed at providing 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.

We believe that such upsides are likely to help this cosmetics player stay in investors’ good books.

Some More Solid Staple Picks

TreeHouse Foods THS, which carries a Zacks Rank #2, has a long-term earnings growth rate of 7.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Helen of Troy HELE carries a Zacks Rank #2 and has a long-term earnings growth rate of 6.7%.

B&G Foods BGS, with a Zacks Rank #2, has a trailing four-quarter earnings surprise of 6.9%, on average.

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