Nu Skin Enterprises, Inc. (NYSE:NUS) announced that its earnings surged in the second quarter, mainly due to lower costs and expenses. The company also expects to revive its revenue growth in the second half of 2015.
Chief Executive Officer, Truman Hunt said the company is happy that the quarterly results came in at the high end of its forecast.
Like other competitors in the market, the company has struggled with weakness in its China business and strong U.S dollar also effected its growth.
Hunt added that NUS is satisfied with its business direction and is expecting a return to sales growth in the second half.
Overall, the company posted earnings of $44.7 million, or 75 cents per share for the quarter, well above $19.5 million, or 32 cents per share one year ago. A $50 million inventory write-down and a foreign currency charge of $25 million associated to Venezuela was included in the year-earlier period.
Revenue for the quarter came in at $560.2 million, down 14 percent from the same period last year. The decline was 7 percent excluding currency fluctuations. Sales of $76 million with limited-time promotions were also included in the year-earlier period.
NUS had predicted earnings in the range of 72 cents per share to 75 cents per share for the latest quarter, and revenue in between $540 million and $560 million.
The company’s operating expenses dropped 14 percent in the quarter.
NuSkin reported that negative effects of currency possibly will make a larger dent on its guidance than previously expected.
Looking forward, the company is now anticipating earnings in the range of $3.47 per share to $3.55 per share for the full year and revenue in between of $2.4 billion-$2.44 billion, below its previous earnings forecast of $3.65-$3.75 per share and revenue in between $2.45 billion-$2.5 billion.
