Nu Skin Enterprises, Inc. NUS posted second-quarter 2026 results, with top line missing the Zacks Consensus Estimate and the bottom line matching the same. Both net sales and earnings experienced year-over-year declines.
In the second quarter, Nu Skin posted adjusted earnings of 20 cents per share. The metric declined 53.5% from adjusted earnings of 43 cents per share in the year-ago quarter. The bottom line matched the Zacks Consensus Estimate.
Quarterly revenues of $320.1 million tumbled 17.1% year over year. Revenues included a negative impact of 1% from foreign currency fluctuations. On a constant-currency basis, revenues fell 16.1%. Rhyz revenues fell 25% year over year to $48.9 million. NUS’s top line missed the Zacks Consensus Estimate of $345 million.
Sales leaders were down 9% year over year to 26,998. Nu Skin’s customer base dropped 14% to 660,037. The company’s paid affiliates were down 8% to 120,291.
Closer Look at NUS’ Q2 Results
Gross profit declined 17.8% year over year to $218.3 million. Gross margin contracted 60 basis points to 68.2%. Within the Nu Skin business, however, gross margin improved 20 basis points to 77.7% from 77.5% in the prior-year quarter.
Selling expenses declined 15.8% to $107.9 million, but increased 50 basis points to 33.7% of revenues from 33.2%. Nu Skin business’ selling expenses were 39.8%, down 20 basis points from 40% in the prior-year quarter.
General and administrative expenses fell 14.9% to $90.8 million, while rising 80 basis points to 28.4% of revenues from 27.6%.
Adjusted operating income decreased 36.5% year over year to $19.6 million. The company’s adjusted operating margin decreased 190 basis points to 6.1% from 8% in the year-ago quarter.
Regional Revenue Results for NUS’ Q2
Region-wise, Nu Skin’s revenues declined 18.1%, 13.7%, 14.9%, 14.4%, 13.4%, 5.3%, 24.8% and 81.5% in the Americas, Mainland China, Southeast Asia/Pacific, Japan, Europe & Africa, Hong Kong/Taiwan, South Korea and Nu Skin Other, respectively.
NUS’ Financial Health Snapshot
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $189.6 million, long-term debt of $193.7 million and total stockholders' equity of $542.7 million. In the reported quarter, the company paid out dividends of $2.9 million and made no stock repurchases. The company has $137.3 million remaining under the current share repurchase authorization.
Nu Skin announced a cash dividend of 6 cents per share, payable on Sept. 9, 2026, to its shareholders’ record as of Aug. 28.
What to Expect From Nu Skin in 2026?
For 2026, NUS now expects revenues of $1.28 billion to $1.35 billion, compared with its previous outlook of $1.35 billion to $1.50 billion. The updated forecast implies a 9% to 14% year-over-year decline in revenues, including an approximately 1% unfavorable impact from foreign currency fluctuations.
Adjusted EPS is now expected to range from 70 cents to 90 cents, down from the previously projected 80 cents to $1.20.
For the third quarter, Nu Skin expects revenues of $310 million to $340 million, representing a year-over-year decline of 7% to 15%, including an approximate 2% to 3% negative impact from foreign exchange. Adjusted earnings are projected between 10 cents and 20 cents per share.
NUS stock has fallen 21.4% in the past three months against the industry’s growth of 11.5%.
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Stocks to Consider
The Estee Lauder Companies Inc. EL manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. It currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Estee Lauder’s current fiscal-year sales and earnings calls for growth of 4.4% and 59.6%, respectively, from the year-ago reported numbers. EL delivered a trailing four-quarter average earnings surprise of 39.1%.
Ulta Beauty, Inc. ULTA operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2. ULTA delivered a trailing four-quarter earnings surprise of 10%, on average.
The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales and earnings calls for growth of 10.3% and 12.3%, respectively, from the year-ago reported numbers.
Sally Beauty Holdings, Inc. SBH operates as a specialty retailer and distributor of professional beauty supplies. It currently carries a Zacks Rank of 2. Sally Beauty delivered a trailing four-quarter average earnings surprise of 6.4%.
The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year sales and earnings calls for growth of 0.8% and 9%, respectively, from the year-ago reported numbers.
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Nu Skin Enterprises, Inc. (NUS): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
Ulta Beauty Inc. (ULTA): Free Stock Analysis Report
Sally Beauty Holdings, Inc. (SBH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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