Nu Skin revenue plummets by 30% to $638.8m

Results come after a challenging year for the company, which was under investigation by the Chinese government in January

Nu Skin Enterprises has registered a revenue decline of 30% in its latest financial results.

In the third quarter, the company generated a revenue of $638.8m, although comparable revenue in the third quarter of 2013 included $203m in sales from the company's limited-time introduction of its ageLOC TR90 weight management system.

Revenue for the third quarter of 2014 was negatively impacted 3% by foreign currency fluctuations. Earnings per share for the quarter were $1.12, ahead of expectations, versus $1.80 in the prior-year period. Truman Hunt, President and Chief Executive Officer, said: “We made significant progress during the third quarter. We believe our business in China is stabilising as we are seeing improving trends in the early sales leader pipeline, we strengthened our capital structure and balance sheet flexibility, we are making good progress in our product development efforts, and we generated positive operating cash flow. We have also seen continued enthusiasm among our sales force at recent sales leader conventions in our South Asia/Pacific, Greater China and Americas regions.

“Our sales results are heavily impacted by our product launch schedule. Last year's second-half launch, which generated approximately $550m in sales, provides a difficult year-over-year comparison. However, excluding product launch sales, the core business has stabilised and is trending positively sequentially. The dynamics of the core business reinforce our confidence in the long-term prospects for Nu Skin and our ability to renew local-currency growth in 2015.”

The results come after a challenging year for Nu Skin, which was under investigation by the Chinese government over allegations that it was conducting illegal business practices in the country in January 2014.

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