Nu Skin To Review Cost Structure

Nu Skin To Review Cost Structure

PROVO, UtahNu Skin Enterprises Inc. (NYSE:NUS) reported July 29 that for its second quarter (2Q03), ended June 30, sales and the bottom line dipped due to poor results in most of the companys international and domestic businesses.

Sales decreased to $240.7 million from $244.9 million, and gross margin rose to 81.2 percent of sales from 80.1 percent. Operating expenses rose to $170.0 million from $165.9 million, and net gain slipped to $16.8 million, or $.21 per share earned, from $18.0 million, or $.22 per share earned.

North Asia, North America and South Asia sales were down for the quarter, while numbers posted in Chinaincluding Taiwan and Hong Kongincreased even though the SARS epidemic negatively impacted results. In terms of division results, Nu Skins personal care revenue fell 6 percent to $112.0 million, although a new skin-firming product introduced in the quarter posted better-than-expected sales. Pharmanex had a 3-percent increase in revenue, coming in at $116.1 million, and Big Planet sales dipped to $12.6 million due to Nu Skins focus on Pharmanex and Nu Skin products.

The company plans to take a close look at its cost structure to focus its spending on promising growth opportunities. As part of this effort, Nu Skin did away with the companys professional employer organization and has offered an early retirement package.

The company announced Aug. 6 a quarterly cash dividend of $.07 per share for all classes of common stock to shareholders on record (as of Sept. 5) on Sept. 24.