NU Skin Enterprises, Inc. (NYSE:NUS) Q4 2022 Earnings Conference Call February 15, 2023 5:00 PM ET

Company Participants

Scott Pond - VP, IR

Ryan Napierski - President, CEO & Director

Connie Tang - EVP & Chief Global Growth & Customer Experience Officer

Mark Lawrence - EVP & CFO

Conference Call Participants

Mark Astrachan - Stifel, Nicolaus & Company

Chasen Bender - Citigroup

Operator

Good day and thank you for standing by. Welcome to the Fourth Quarter 2022 Nu Skin Enterprises Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Scott Pond, VP of Investor Relations. Please go ahead.

Scott Pond

Thanks, Victor, and good afternoon, everyone. Today on the call with me are Ryan Napierski, President and CEO; Connie Tang, Chief Global Growth Officer; and Mark Lawrence, CFO.

On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.

Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP financial numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website for any required reconciliation of non-GAAP numbers.

And with that, I'll turn it over to Ryan.

Ryan Napierski

Thanks, Scott. Hello, everybody. Thanks for joining us today. We have a lot to cover, so let me just dive into this. 2022 was a year filled with unanticipated macro environmental disruptions that impacted our business globally. We finished the year at $2.23 billion and -- of revenue and EPS of $2.90, excluding onetime charges.

The majority of the year-over-year decline in our business was due to strict COVID-related factors in China, which accounted for approximately $208 million of the revenue shortfall; as well as unfavorable FX, which negatively impacted us by about $150 million; and overall global inflation, which impacted consumer sentiment and global supply chain.

Despite these headwinds, we made meaningful progress on several of the key strategic imperatives, foundational to our Nu Vision 2025 transformation, which helped us deliver annual revenue growth of 4% in the U.S. and 2% in Southeast Asia Pacific. Our Japan and Hong Kong, Taiwan segment also grew in constant currency in the year, while reported revenue was down due to FX headwinds.