Nu Skin Enterprises, Inc. (NYSE:NUS) Q3 2022 Earnings Conference Call November 2, 2022 5:30 PM ET

Company Participants

Scott Pond - Vice President of Investor Relations

Ryan Napierski - President & CEO

Mark Lawrence - CFO

Connie Tang - Chief Global Growth Officer

Conference Call Participants

Operator

Good day, and thank you for standing by. Welcome to the Nu Skin Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand your conference over to your first speaker today, Scott Pond, VP of Investor Relations. Scott, you have the floor.

Scott Pond

Thanks, Stacy, 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 the call over to Ryan.

Ryan Napierski

Thanks, Scott. Good afternoon, everybody, and thanks for joining us on the call today. It's been an interesting year to date to say the least as we initiated a global strategic transformation at Investor Day earlier in the year, just prior to the economic turmoil that we're now facing.

The third quarter proved more challenging than anticipated due to an increasingly difficult global environment and geopolitical complexities. We finished the third quarter at $538 million with a non-GAAP EPS of $0.47. Four primary factors accounted for most of the shortfall versus our guidance.

First, continued declines in Mainland China due to the prolonged COVID-related disruptions, including expanded lockdowns throughout the country; second, increasing weaknesses in South Korea related to economic pressures and company price increases; third, persistent global inflationary pressures; and fourth, the strengthening of the U.S. dollar above expectations, placing pressure across our supply chain.