NuSkin Enterprises, the Utah-based multilevel marketing company was the second MLM company to be granted access to conduct business in China. The Far East has been a source of great expectations for many MLM companies as they explore opening into this untapped market of billions.
Unfortunately for NuSkin; currency fluctuations and decreased revenue has forced the company to report 3rd Quarter losses for 2006.
Utah newspaper, The Daily Herald reports:
“Nu Skin Enterprises Inc. posted a 25 percent drop in third quarter net profits because of weak sales in Asia and unfavorable foreign currency fluctuations.
The Provo direct seller of nutritional supplements and personal care products said net income for the third quarter ended Sept. 30 fell to $13.2 million, or 19 cents a share, from $17.7 million, or 25 cents a share a year ago. Total revenue for the third quarter dipped to $276.3 million from $290.8 million for the prior-year period.
Shares of Nu Skin dipped 2.23 percent or 42 cents to close Thursday’s trading session at $18.45.
Hurting the company’s third-quarter earnings were slower sales in China and Japan, both of which account for more than 50 percent of Nu Skin’s revenues,(emphasis Mine) as well as unfavorable foreign currency fluctuations.
Revenues in China dropped 12 percent to $51 million for the third quarter from $58 million a year ago, while revenues in North Asia as a whole fell to $147.8 million in the third quarter, from $160.4 million a year ago.”
I’ll add that NuSkin is a 20-year old company and I feel they’ll be able to weather this loss due to their infrastructure; just my opinion.