Nu Skin Enterprises Inc. (NYSE:NUS) Q4 2019 Earnings Conference Call - Final Transcript
Feb 12, 2020 • 05:00 pm ET
Good afternoon, ladies and gentlemen, and welcome to the Q4 2019 Nu Skin Enterprises Earnings Conference Call.
I will now turn the call over to Mr. Scott Pond, Vice President of Investor Relations. Please go ahead, sir.
Thank you, Lee and good afternoon everyone. On the call with me today are Ritch Wood, Chief Executive Officer; Ryan Napierski, President; Mark Lawrence, Chief Financial Officer; and Dr. Joe Chang, Chief Scientific Officer.
On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.
Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP financial numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor page at ir.nuskin.com for any required reconciliation of non-GAAP numbers.
And I'll now turn the time over to Ritch.
Good afternoon everyone and thank you for joining us today. With everything that is going on in the world right now, we appreciate you taking time to participate in today's call.
Before I speak more about the broader global issues. Let's take a couple of minutes and go over our Q4 and 2019 results. Our fourth quarter finished in line with our expectations with revenue of $583.4 million and earnings per share of $0.72. Our markets generally performed as we had modeled, although in Mainland China, we continue to feel the effects of the meeting restrictions and negative media from earlier in the year.
For 2019, our revenue was $2.42 billion, down 10% or 7% in constant currency, when adjusting for the 3% currency headwind throughout the year. Earnings per share were $3.10.
Overall, our business results were greatly impacted by the events in China which caused our China business to retreat 15% in local currency for the year. However, we are confident in our long-term position and our future opportunities in China and we have strong product and digital initiatives lined-up for 2020.
Early in the fourth quarter, we held a Global Convention in Salt Lake City with leaders from around the world in attendance and tens of thousands more participating via live stream. During the event we aligned our sales force around upcoming initiatives and outlined our product strategy for 2020 generating energy and enthusiasm among our sales leaders and setting the stage for the upcoming year.
We're also pleased with the performance of our manufacturing entities reporting 24% growth in the quarter and 35% growth for the year. These partner companies are contributing to improvements in our revenue, operating margin, cost efficiencies and product innovation and we anticipate continued growth in 2020.
Before we discuss our business in China and our outlook for 2020, I want to express our sincere concern for everyone being impacted by the recent spread