Why Nu Skin Enterprises Stock Plunged Today

Shares of Nu Skin (NUS -20.71%) fell 20.7% on Thursday as weak forward guidance overshadowed a better-than-expected quarterly update from the personal care and dietary products company.

Nu Skin battles macro headwinds amid restructuring efforts

For its fourth quarter of 2023, Nu Skin’s revenue declined 6% year over year to $488.6 million, translating to adjusted (non-GAAP) earnings of $0.37 per share. By comparison, most analysts were looking for significantly lower earnings of $0.28 per share on revenue of $477.8 million.

Still, Nu Skin CEO Ryan Napierski admitted the company’s results were held back by “persistent macroeconomic pressures and disruptions associated with transforming our business.”

Nu Skin previously laid off around 5% of its workforce after announcing extended restructuring initiatives in November 2023.

What’s next for Nu Skin shareholders?

For the full-year 2024, Nu Skin issued guidance calling for revenue of $1.73 billion to $1.87 billion, or down 12% to 5% from 2023. That should translate to full-year 2024 adjusted earnings per share of $0.95 to $1.35. Both the top- and bottom-line outlook ranges were far below Wall Street’s estimates for 2024 earnings of $2.05 per share on revenue of $2.01 billion.

In the end, Nu Skin’s restructuring might well reposition the company for a return to sustained, profitable growth. But in this forward-looking market that hates being told to effectively hurry up and wait, it’s no surprise to see Nu Skin stock now hovering near its 52-week low in response.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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