Nu Skin Enterprises Inc. shares dropped in the extended session Thursday after the skin-care and beauty products multi-level marketing company said second-quarter sales would be coming in light given several factors.
shares fell 5% after hours, following a 1.6% decline to close the regular session at $43.69.
“Our second-quarter revenue was softer than expected due to extended COVID-related factors in Mainland China, distractions in EMEA related to the ongoing conflict in Russia and Ukraine, and the general global economic downturn that is particularly challenging for developing regions like Latin America,” said Ryan Napierski, Nu Skin chief executive, in a statement.
“Although we are disappointed in our second-quarter results, we are encouraged by growth in our Southeast Asia region and ongoing momentum in the U.S., particularly given the inflationary environment,” Napierski said.
The company did not provide specifics but said that it will provide an updated forecast following the release of second-quarter earnings scheduled for Aug. 4 after the market closes.
A month ago, Nu Skin had forecast earnings of 75 cents to 85 cents a share on revenue of $590 million to $620 million for the second quarter, and $3.60 to $3.90 a share on revenue of $2.51 billion to $2.62 billion for the year.
Based on that, analysts surveyed by FactSet are forecasting, on average, earnings of 81 cents a share on revenue of $604.7 million for the second quarter, and $3.73 a share on revenue of $2.54 billion for the year.