Nu Skin 2001 Results Suffer from Weakening Yen

Nu Skin 2001 Results Suffer from Weakening Yen

PROVO, Utah--Nu Skin Enterprises Inc.(NYSE:NUS) reported that for its fourth quarter and fiscal year, ended Dec. 31, earnings decreased because of the weakening of the Japanese yen, even though revenue increased. Net sales came in at $232.6 million for 4Q01, up 4 percent from 4Q00's $223.6 million revenue. Gross margin dipped slightly to 80.1 percent of sales, compared to 82.3 percent recorded in the same period last year; operating expenses went up to $167.5 million from $164.4 million. Net profit went down 16 percent to $13.6 million, or $.16 per share earned, from $16.2 million, or $19 per share earned.

For the year, Nu Skin clocked in $885.6 million in revenue, up 1 percent from FY00's $879.8 million. Gross margin fell to 79.9 percent of sales from 83 percent experienced in the previous year, while operating expenses were chopped to $636.1 million from $640.0 million. Earnings went down 18.5 percent to $50.3 million, or $.60 per share earned, from $61.7 million, or $.72 per share earned.

The company chalked up the decline in its earnings per share to a decrease in the value of the Japanese yen. Although the company's North Asia business had a 7-percent increase in net sales in terms of constant currency, revenue was down 5 percent due to the weakened Japanese yen. However, in Southeast Asia, revenue was up 45 percent on a reported basis. In North America, revenue was level with fiscal 2000 results.

In terms of company divisions, its personal care business was up 4 percent on a reported basis during the fourth quarter, but it was down 4 percent for the year. Nu Skin's Pharmanex had revenue that was up 2 percent on a reported basis for the quarter and 3 percent for the year.