NU SKIN ENTERPRISES, INC. Q1 FY2025 earnings call

• Ryan highlighted Q1 performance with revenue at the high end of guidance and adjusted earnings per share exceeding expectations. - Strategic priorities for 2025 include: strengthening core business with over $20B in sales compensation paid, enhancing sales compensation plan, and pursuing developing market strategy (e.g., 144% Y/Y growth in Latin America); accelerating innovation with Prysm iO, a palm-sized device measuring carotenoid levels for intelligent wellness insights, with rollout planned for Q3/Q4 2025 and broader consumer distribution in 2026; improving operational performance and efficiency, with progress on gross margin target and cost reduction efforts.

For Q1 2025, Nu Skin achieved revenue at the high end of the guidance range, totaling $364.5 million, with a 3% negative foreign currency impact of $12.3 million. GAAP earnings per share were $2.14, while adjusted earnings per share were $0.23, surpassing expectations. Q1 gross margin was 67.8% compared to 70.5% in the prior year, primarily due to revenue mix. Within the core Nu Skin business, gross margin was 76.7%, slightly down from the prior year but showing three quarters of sequential adjusted gross margin improvement. Selling expense as a percentage of revenue was 32.5%, a decline from the prior year, with core Nu Skin segment selling expense at 38.7%. General and administrative expenses improved to 28.9% of revenue. Latin America experienced significant growth, while the U.S. and Canada were affected by macro pressures. South Korea and China showed improving trends, Europe and Africa had improving results from the enhanced sales performance plan, and Japan was relatively consistent on a local currency basis.

• Q2 revenue projected between $355 million and $390 million, factoring in a foreign currency headwind between 2% to 3%. - Q2 reported earnings per share anticipated to be in the range of $0.20 to $0.30. - Maintaining current guidance with expectation of more informed updates at end of Q2 when consumer behaviors and top-line trends are clearer.

• Macro environmental factors and consumer caution in purchasing premium beauty and wellness products. - Potential impact of tariffs on inflation and consumer sentiment. - Geopolitical dynamics and their effect on the business.

Q: Operator: This does conclude today's conference call. You may all disconnect.

A: Operator: This does conclude today's conference call. You may all disconnect.