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

Aug 06, 2019 • 05:00 pm ET

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

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Presentation
Executive
Ritch N. Wood

has the confidence of our sales leaders. Several key initiatives, including the launch of a new Galvanic Spa and new incentives for sales leader performance will kick off this quarter and should help strengthen our Mainland business.

We are encouraged with the performance of our other segments, which performed largely in line with our expectations in the second quarter, particularly giving a -- given a difficult comparison as we reported 28% growth in the prior year in connection with our LumiSpa launch. Our manufacturing platform reported second quarter growth of 39%, and we continue to see great potential in this area.

In the second half of the year, we will focus our attention on several key global product initiatives, including the release of a new-and-improved Galvanic Spa, historically our top-selling product. In October, we will be holding our biennial global sales leader event, which we call LIVE!, where we will be hosting our sales leaders from around the world. We are confident that we have the right strategy focused on customer growth and driven by engaging platforms, enabling products and empowering programs.

I'll now turn the call over to Ryan, who will give some additional detail around our strategy and plans for the rest of the year, and then Mark will take us through the financials. Ryan?

Executive
Ryan Napierski

Thanks, Ritch. Good afternoon, everyone. Let me first begin by reiterating comment -- Ritch's comments that we remain confident in our growth strategy as we adapt to changing environmental factors. We continue to focus on empowering sales leaders to grow their businesses by acquiring and retaining customers through engaging platforms, enabling products, and empowering programs. I also want to address some of the steps we are taking in response to the situation in China and the progress we are making in executing our overall growth strategy.

First, regarding China; we are encouraged with our increasing ability to hold meetings which facilitates the building and training of our sales force. In fact, I was in Shanghai three weeks ago for our Company's largest ever Mainland China sales event with more than 20,000 enthusiastic sales leaders in attendance. Their enthusiasm gives me confidence for our future in China.

China remains a top priority as we continue to work to strengthen our business in the second half. We have three specific initiatives to accomplish this goal. First, the launch of our new-and-improved Galvanic Spa, together with our new ageLOC Nutriol, hair and scalp treatment system; second, new business incentives intended to improve sales leader productivity; and third, initiatives focused on customer acquisition and retention, including a new customer referral program.

Next, let me mention a few of the highlights in our other regions. The Americas-specific segment generally performed as expected, but was negatively impacted by the hyper-inflationary environment in Argentina. The Pacific, Mexico and Peru generated strong results, and we look forward to the Discover the Best US initiative in our home market, which is a multifaceted campaign consisting of several platform, product and program initiatives