Nu Skin Increases Earnings, Excited About Expansion IntoChinese Market

August 26, 2002

2 Min Read
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Nu Skin Increases Earnings, Excited About Expansion IntoChinese Market

PROVO, Utah--Nu Skin Enterprises Inc. (NYSE:NUS)reported that for its second quarter (2Q02), ended June 30 and posted July 17,international sales increases helped the company have larger earnings for thequarter.

Sales for 2Q02 increased 7.5 percent to $461.0 million, whilegross margin remained steady at around 80 percent of sales. Operating expenses,including distributor incentives, totaled $317.4 million compared to 2Q01's$309.8 million. Net income came in at $30.9 million, or $.38 per share earned,compared to the same period last year's $24.2 million, or $.29 per share earned.

Internationally, the company's revenues grew, including inSoutheast Asia (an increase of 34 percent) and North Asia (an increase of 12percent). In the United States, revenue dropped 11 percent. In terms of brands,Pharmanex' sales rose 18 percent and Nu Skin revenue increased 11 percent, butdollars for Big Planet products decreased 14 percent.

"Our revenue growth reflects successful product launches inseveral markets, the appeal of our Internet initiatives in Asia, the opening ofMalaysia in November, and global distributor enthusiasm for current and upcomingbusiness initiatives, including our planned expansion of operations inChina," said Steven Lund, president and chief executive officer. "Withdistributor excitement for our expansion in China in early 2003 and with thestrong new product initiatives in the second half of 2002, we expect to reportrevenue growth in the low teens compared to the second half of 2001."

On July 29, Nu Skin's board of directors declared a quarterlycash dividend of $.06 per share for all classes of common stock. The dividendwill be paid on Sept. 25 to shareholders of record as of Sept. 6. The board alsoauthorized a $20 million increase in the company's ongoing stock repurchaseprogram, which is in addition to the $4 million remaining under previousauthorizations.


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