Nu Skin (NUS) Troubled by Customer Acquisition Challenges

Core Viewpoint - Nu Skin Enterprises, Inc. is facing significant challenges due to persistent macroeconomic headwinds, impacting customer and affiliate acquisition, and leading to a negative outlook for 2024 [1][2][4]. Macroeconomic Challenges - The company has been affected by inflationary pressures on consumer spending for premium products, resulting in a 13.3% year-over-year decline in quarterly revenues to $417.3 million [2]. - On a constant-currency basis, revenues fell by 9.5%, with sales leaders down 12% year over year to 38,609, and the customer base dropping 19% to 875,261 [2]. - Paid affiliates decreased by 30% to 154,171, with an adjusted basis showing a 14% decline [2]. Currency Impact - Nu Skin's revenues in the first quarter of 2024 were adversely affected by foreign currency fluctuations, which had a negative impact of 3.8% [3]. - The company anticipates unfavorable foreign currency impacts of 2-3% on 2024 revenues and 4-3% on second-quarter revenues [3]. Future Outlook - Management expects macroeconomic hurdles to persist, reaffirming a negative outlook for 2024 with projected revenues between$ 1.73 billion and $1.87 billion, indicating a decline of 12-5% from the previous year [4][5]. - Adjusted EPS is expected to be between 95 cents and$ 1.35, down from $1.85 in 2023 [5]. - For the second quarter of 2024, revenues are projected to be between$ 420 million and $455 million, reflecting a decline of 16% to 9% year-over-year [5]. - Adjusted earnings for the second quarter are expected to be between 10-20 cents per share, compared to 54 cents in the same period last year [5]. Stock Performance - Nu Skin's shares have decreased by 38.5% over the past six months, contrasting with the industry's decline of 17.4% [5].