Direct Sales players Nu Skin has seen its share prices rise on the back of a revised outlook for its financial performance in 2013 that should see its revenues grow at well into double digit figures.
Although the company is headquartered in the US and a global player, most of its revenues are derived from the Asia Pacific region, and more specifically the China market, where it has ridden a wave of strong growth in the cosmetics and personal care category.
The Utah-based skin care and nutritional supplements provider said that it was anticipating a ‘significant increase to estimated revenue and earnings per share for the second quarter of 2013’.
Outlook for revenue and earnings raised significantly
The outlook has been raised from a prior revenue forecast for the quarter of $570m to $580m, to $680m, while the earnings per share guidance goes from a range of $0.91 to $0.95, up to $1.20.
Not surprisingly the news was well received by investors, causing a rally on the company’s shares that sent prices surging, with share prices up more than 8 percent in early morning trading today, to $5.42, a significant achievement considering share prices have already risen by around 80 percent so far this year.
The company also said that it was expecting its full-year 2013 revenue to increase, up from earlier forecasts of around $$2.5bn to a new forecast range of Yea$2.83bn to $2.86bn, with an anticipated 5 percent impact from foreign currency fluctuations.
Strong on new product launches
"Our second-quarter results reflect the strong momentum of our business," said Truman Hunt, company president and chief executive officer.
"After a record 2012 that included impressive ageLOC product launches in the second quarter, we continue to generate healthy gains throughout our global business, particularly in the Greater China, North Asia and Americas regions.”
Looking ahead to the rest of the year, Hunt stated that the company was ramping up its biggest ever product introduction, related to the company’s new ageLOC TR90 weight management system.
“We continue to expect this product introduction to be the largest in our history and anticipate a net impact of approximately $380 to $400 million from TR90 sales in the second half of the year," said Hunt.