Nu Skin Announces Update To Its Record-Setting Ageloc Product Roll-Out
Company Increases Annual Guidance
PROVO, Utah, May 8, 2012 /PRNewswire/ -- In connection with the company's annual sales incentive trip, Nu Skin Enterprises, Inc. (NYSE: NUS) today announced that it has experienced a record-setting response to its ageLOC® product introductions in the Greater China and South Asia regions. The regions are the latest geographies to initiate orders of the company's ageLOC® R2 (R-squared) and ageLOC® Galvanic Body Spa™ and its related skin care products.
"On the heels of a record first quarter, we are pleased to report today that the Greater China and South Asia regions have received approximately $150 million of orders for our new ageLOC products," said Truman Hunt, president and chief executive officer. "The products will be delivered in connection with upcoming regional events taking place in the second and third quarters. These latest, record-breaking introductions are not only a testament to the strength of our exclusive, super-class of ageLOC products, but further demonstration of the high-caliber and talented sales leaders we have in these regions, as well as throughout the world."
The company began the global roll-out of its new ageLOC products in the first quarter in the United States, Japan, Korea and Europe. The company's latest anti-aging products include the ageLOC® Galvanic Body Spa™, an advanced skin treatment system that is complemented by the new ageLOC®.
Body Shaping Gel and ageLOC® Dermatic Effects® Body Contouring Lotion; and ageLOC® R2 (R-squared), a nutritional supplement system designed to renew and recharge the body. Since launching the first ageLOC products three years ago, the exclusive anti-aging product portfolio has become a tremendous success for Nu Skin, generating sales of well more than $1 billion worldwide.
"Our previous guidance included a net revenue benefit of $60 million from these ageLOC product introductions, which takes into account potential cannibalization of other products sales, as well as order cancellations and product returns," said Ritch Wood, chief financial officer. "Based upon the orders we have received, we are raising our revenue guidance by $40 million and our earnings guidance by $0.06 earnings per share, bringing our full year guidance to $1.885 to 1.915 billion of revenue, and $2.98 to $3.06 in earnings per share. These orders will be filled and recorded as revenue in both the second and third quarters based on the timing of our fulfillment of the orders," concluded Wood.
About Nu Skin Enterprises, Inc.
Nu Skin Enterprises, Inc. demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. The company's scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its unique ageLOC® science that addresses aging at its source. The company's anti-aging products feature the new ageLOC suite of products including the ageLOC R2 (R-squared) nutritional supplement, ageLOC Galvanic Spa System and ageLOC Galvanic Body Spa™, as well as the ageLOC Transformation daily skin care system. A global direct selling company, Nu Skin operates in 52 markets worldwide and has more than 860,000 independent distributors. Nu Skin is traded on the New York Stock Exchange. More information is available at http://www.nuskin.com.
Please note: This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the company's current expectations and beliefs, including, among other things: (i) management's positive outlook for the company; (ii) management's expectations regarding the company's initiatives, strategies and new products; and (iii) management's projections regarding revenue and earnings per share. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following: (a) risk that order cancellations, product returns, and cannibalization to other product sales will exceed management's expectations; (b) challenging economic conditions globally; (c) risk of foreign currency fluctuations and the currency translation impact on the company's business associated with these fluctuations; (d) any failure of current or planned initiatives or products to generate interest among distributors and customers and generate sponsoring and selling activities on a sustained basis; (e) risks associated with increased general inquiries and complaints to consumer protection agencies in Japan regarding the activities of some distributors; (f) regulatory risks associated with the company's products, which could inhibit the company's ability to import or continue selling a product in a market if it is determined to be a medical device, including risks associated with the United States Food and Drug Administration's pending review of whether the Galvanic Spa System II is a medical device; (g) continued regulatory scrutiny and investigations in Mainland China, which have from time to time in the past, and could in the future, negatively impact the company's business, including the interruption of sales activities in stores, loss of licenses, and the imposition of fines; (h) adverse publicity related to the company's business, products, industry or any legal actions or complaints by distributors or others; (i) any prospective or retrospective increases in duties on the company's products imported into the company's markets outside of the United States and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; and (j) continued competitive pressures in the company's markets. The company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company's beliefs as of the date of this release, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.
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