Nu Skin Enterprises, Inc. (NYSE:NUS) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET

Company Participants

Scott Pond - VP, IR
Ryan Napierski - President and CEO
James Thomas - CFO

Conference Call Participants

Chasen Bender - Citi
Sydney Wagner - Jefferies LLC

Operator

Good day. Thank you for standing by. Welcome to the Nu Skin Enterprises' Second Quarter 2024 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 the conference over to your speaker today, Scott Pond, VP of Investor Relations. Please go ahead.

Scott Pond

Thanks Shannon and good afternoon everyone. Today on the call with me are Ryan Napierski, President and CEO; and James Thomas, 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 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'd like to turn the call over to Ryan.

Ryan Napierski

Thanks Scott. Hello everyone. Thanks for joining us today. I'll start by providing a performance summary of Q2 and then share progress update on our ongoing enterprise transformation vision, strategy, and plan as we continue to evolve our core Nu Skin business from a traditional direct selling model towards a more expansive integrated beauty, wellness, and lifestyle company, including our Rhyz ecosystem.

The second quarter played out similar to the first with revenue slightly above the midpoint of our guidance despite a stronger-than-anticipated FX headwind of over 4%.

Non-GAAP earnings per share were near the top end of the range, reflecting continued progress to plan for our business transformation, while managing costs and driving efficiencies.

Overall, the operating environment remains challenging for our core Nu Skin business, due in large part to macroeconomic factors and pressures on the direct selling industry itself.

Despite these challenges, we were encouraged by sequential gains in several of our markets, including the U.S., South Korea, and parts of Southeast Asia-Pacific. Most notably, we experienced year-over-year improving trends and paid brand affiliates globally, which translated into improving new sales leaders. China remained challenging due to macro trends in the market.