Nu Skin Enterprises Inc. (NYSE:NUS) Q2 2019 Earnings Conference Call Transcript

Aug 06, 2019 • 05:00 pm ET

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Nu Skin Enterprises Inc. (NYSE:NUS) Q2 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

[Operator Instructions] Your first question comes from the line of Faiza Alwy from Deutsche Bank. Your line is now open.

Analyst
Faiza Alwy

Thank you. Hi. So I guess, I just wanted to go back to China a little bit, where do things stand currently? And what -- are you able to do meetings now? And what are you embedding in your 3Q and fiscal '19 guidance for China?

Executive
Ritch N. Wood

Yeah. Thanks, Faiza. We were able to start holding some limited meetings towards the end of the second quarter. And then throughout July, as I mentioned in my script, about two-thirds of areas where our sales leaders live and work were able to actually begin holding meetings. Some of those meetings are restricted based on the size that is being approved at the meeting. But nevertheless, we're able to start holding those meetings. And actually it's a little better than that here in August. And hopefully we'll see that continue as we go forward.

We are kicking off some initiatives beginning actually in August with some promotion initiatives and so forth with the sales force. What we've embedded in the guidance is essentially a slightly lower Q3 versus Q2 in China and then coming back a little bit in the Q4 timeframe as we start meetings and begin to get our promotions kicking in, get our sales force back working.

Analyst
Faiza Alwy

Okay. And can you share what the sales trajectory was, maybe June versus July in China?

Executive
Ritch N. Wood

Yeah, I mean, generally we don't go month by month, but that would be all factored into the way we guide. And again, I think we've tried to be careful in saying that we believe Q3 may be a little bit lower than Q2 and then we anticipate Q4 a little bit stronger. Q4 stronger than Q3 is normally a sequential trend that we see anyway, but we do anticipate our sales force going back to work and driving the activity.

Analyst
Faiza Alwy

Okay. And so -- and what's the timing of the new Galvanic Spa? And do you think that's going to be that's --is that a global roll-out? And are you going to be able to start selling the product in China by the end of the year?

Executive
Ritch N. Wood

Yes, we absolutely will. It kicks off in China actually with our team elites get the chance to get the new product this month and then there will be a qualified sales leader purchase in September and then the full roll out in the fourth quarter. Most of the markets will have some sort of a preview in the month of September on a limited basis with the full roll-out happening in the fourth quarter and that's pretty much global in nature.

Analyst
Faiza Alwy

Okay. And then just -- your guidance range for 4Q with the implied range seems pretty wide. So are there -- could we talk a little bit about what's some of the puts and takes are perhaps beyond of China? Or is it primarily just factoring in some uncertainty