Nu Skin Enterprises Files 2023 Annual Report on Form 10-K

TL;DR

<b>Nu Skin Enterprises filed its 2023 10-K, detailing financial performance and operational aspects.</b>

AI Summary

NU SKIN ENTERPRISES, INC. (NUS) filed a Annual Report (10-K) with the SEC on February 15, 2024. Nu Skin Enterprises, Inc. filed its annual report for the fiscal year ending December 31, 2023. The filing includes financial data and operational details for the period. The company's principal executive offices are located at 75 West Center St, Provo, UT 84601. The filing references specific accounting standards and financial instruments. The report details various financial statement components and their changes over fiscal years 2020-2023.

Why It Matters

For investors and stakeholders tracking NU SKIN ENTERPRISES, INC., this filing contains several important signals. This 10-K provides a comprehensive overview of Nu Skin's financial health and strategic positioning for investors and analysts. Understanding the detailed financial statements and risk factors is crucial for assessing the company's future prospects and potential challenges.

Risk Assessment

Risk Level: medium — NU SKIN ENTERPRISES, INC. shows moderate risk based on this filing. The company operates in the wholesale drug and proprietary sundries sector, which can be subject to regulatory scrutiny and market fluctuations, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Nu Skin's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-15 — Filing Date (Date the 10-K was filed)
• 001-12421 — SEC File Number (SEC file number for Nu Skin Enterprises)
• 5122 — SIC Code (Standard Industrial Classification code)

Key Players & Entities

• NU SKIN ENTERPRISES, INC. (company) — Filer name
• GREGORY BELLISTON (person) — Contact person for business and mail address
• Provo, UT (location) — Business and mail address city and state
• 84601 (location) — Business and mail address ZIP code
• 801-345-1000 (phone_number) — Business phone number

FAQ

Risk Factors

• Regulatory Compliance [medium — regulatory]: The company is subject to various regulations in the markets where it operates, which could impact its business operations and financial results.
• Market Competition [medium — market]: The direct selling industry is highly competitive, and Nu Skin faces competition from other companies, which could affect its market share and profitability.
• Supply Chain and Distribution [medium — operational]: Disruptions in the company's supply chain or distribution network could adversely affect its ability to deliver products to customers.

Industry Context

Nu Skin Enterprises operates in the direct selling industry, primarily focusing on skincare and wellness products distributed through a network of independent distributors.

Regulatory Implications

The company is subject to regulations governing direct selling, product claims, and international business operations, which vary by jurisdiction.

What Investors Should Do

1. Review Nu Skin's detailed financial statements for the fiscal year ended December 31, 2023.
2. Analyze the risk factors section to understand potential challenges and their impact on the company.
3. Compare key financial metrics with previous periods to identify trends and performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-15: 10-K Filing Date — Date Nu Skin Enterprises filed its annual report.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $2.0 billion — kets worldwide. In 2023, our revenue of $2.0 billion was primarily generated by our three pr
• $216.6 m — . In 2023, the Rhyz companies generated $216.6 million, or 11%, of our 2023 reported rev
• $342 m — business. The beauty category includes $342 million, $440 million and $658 million in
• $440 million — beauty category includes $342 million, $440 million and $658 million in sales of devices an
• $658 million — includes $342 million, $440 million and $658 million in sales of devices and related consuma
• $216.6 million — f our core Nu Skin business, generating $216.6 million in revenue from sales to external custo

Filing Documents

• ef20015265_10k.htm (10-K) — 3202KB
• ef20015265_ex4-2.htm (EX-4.2) — 17KB
• ef20015265_ex10-5.htm (EX-10.5) — 136KB
• ef20015265_ex10-6.htm (EX-10.6) — 136KB
• ef20015265_ex10-13.htm (EX-10.13) — 207KB
• ef20015265_ex21-1.htm (EX-21.1) — 10KB
• ef20015265_ex23-1.htm (EX-23.1) — 2KB
• ef20015265_ex31-1.htm (EX-31.1) — 12KB
• ef20015265_ex31-2.htm (EX-31.2) — 12KB
• ef20015265_ex32-1.htm (EX-32.1) — 4KB
• ef20015265_ex32-2.htm (EX-32.2) — 4KB
• ef20015265_ex97-1.htm (EX-97.1) — 26KB
• image01.jpg (GRAPHIC) — 20KB
• 0001140361-24-008111.txt (&nbsp;) — 16234KB
• nus-20231231.xsd (EX-101.SCH) — 87KB
• nus-20231231_cal.xml (EX-101.CAL) — 125KB
• nus-20231231_def.xml (EX-101.DEF) — 550KB
• nus-20231231_lab.xml (EX-101.LAB) — 1353KB
• nus-20231231_pre.xml (EX-101.PRE) — 870KB
• ef20015265_10k_htm.xml (XML) — 2809KB

BUSINESS

BUSINESS 1 PRODUCTS 1 DISTRIBUTION CHANNEL 3 GEOGRAPHIC REGIONS 8 REGULATION 8 COMPETITION 15 HUMAN CAPITAL RESOURCES 15 AVAILABLE INFORMATION 16 INFORMATION ABOUT OUR EXECUTIVE OFFICERS 17 ITEM 1A.

RISK FACTORS

RISK FACTORS 18 ITEM 1B. UNRESOLVED STAFF COMMENTS 43 ITEM 1C. CYBERSECURITY 43 ITEM 2.

PROPERTIES

PROPERTIES 43 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 44 ITEM 4. MINE SAFETY DISCLOSURES 44 PART II 44 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 44 ITEM 6. RESERVED 45 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 46 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 59 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 61 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 98 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 98 ITEM 9B. OTHER INFORMATION 98 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 98 PART III 99 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 99 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 99 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 99 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 99 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 99 PART IV 99 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 99 ITEM 16. FORM 10-K SUMMARY 100

SIGNATURES

SIGNATURES 101 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS THIS ANNUAL REPORT ON FORM 10-K, IN PARTICULAR "ITEM 1. BUSINESS" AND "ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS," CONTAINS FORWARD-LOOKING HISTORICAL FACT ARE "FORWARD-LOOKING STATEMENTS" FOR PURPOSES OF FEDERAL AND STATE SECURITIES LAWS AND INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS OF MANAGEMENT'S EXPECTATIONS REGARDING OUR PERFORMANCE, INITIATIVES, STRATEGIES, PRODUCTS, INGREDIENTS, PRODUCT INTRODUCTIONS AND OFFERINGS, PRODUCT SOURCING, GROWTH, ACQUISITIONS AND ACQUIRED COMPANIES' PERFORMANCE, GROWTH OF OUR RHYZ BUSINESSES, GLOBAL ECONOMIC CONDITIONS, OPPORTUNITIES AND RISKS; STATEMENTS OF PROJECTIONS REGARDING FUTURE SALES, EXPENSES, OPERATING RESULTS, TAXES AND DUTIES, CAPITAL EXPENDITURES, SOURCES AND USES OF CASH, FOREIGN-CURRENCY FLUCTUATIONS OR DEVALUATIONS, REPATRIATION OF UNDISTRIBUTED EARNINGS, AND OTHER FINANCIAL ITEMS; STATEMENTS OF MANAGEMENT'S EXPECTATIONS, PLANS AND BELIEFS REGARDING OUR MARKETS, SALES FORCE, SALES COMPENSATION PLAN AND CUSTOMER BASE; STATEMENTS REGARDING THE PAYMENT OF FUTURE DIVIDENDS AND STOCK REPURCHASES; STATEMENTS REGARDING THE OUTCOME OF LITIGATION, AUDITS, INVESTIGATIONS AND OTHER LEGAL MATTERS, INCLUDING GOVERNMENT POLICIES AND REGULATIONS IN MAINLAND CHINA; ACCOUNTING ESTIMATES AND ASSUMPTIONS; STATEMENTS OF BELIEF; AND STATEMENTS OF ASSUMPTIONS UNDERLYING ANY OF THE FOREGOING. IN SOME CASES, YOU CAN IDENTIFY THESE UNDERTAKE NO OBLIGATION TO PUBLICLY UPD

BUSINESS

BUSINESS Nu Skin Enterprises, Inc. develops and distributes a comprehensive line of premium-quality beauty and wellness solutions in nearly 50 markets worldwide. In 2023, our revenue of $2.0 billion was primarily generated by our three primary brands: our beauty brand, Nu Skin; our wellness brand, Pharmanex; and our anti-aging brand, ageLOC. We operate in the direct selling channel, primarily utilizing person-to-person marketing to promote and sell our products, including through the use of social and digital platforms. In addition to our core Nu Skin business, we also explore new areas of synergistic and adjacent growth through our business arm known as Rhyz Inc. Our Rhyz businesses primarily consist of consumer, technology and manufacturing companies. In 2023, the Rhyz companies generated $216.6 million, or 11%, of our 2023 reported revenue (excluding sales to our core Nu Skin business). Rhyz is a key component of our business, and we anticipate its continued growth in the coming years both on an absolute basis and as a percentage of our consolidated revenue. These companies enable us to diversify our revenue mix, serve more customers where they shop, and create synergies for our owned and partner brands. In 2023, we generated approximately 26% of our revenue from the United States (consisting of our Nu Skin United States and Rhyz businesses) and the remainder from our international markets. Given the size of our international operations, our results, as reported in U.S. dollars, are often impacted by foreign-currency fluctuations; in 2023, our revenue was negatively impacted 3% from foreign-currency fluctuations compared to 2022. Our results also can be impacted by global economic, political, demographic and business trends and conditions. Our operations are subject to various laws and regulations globally, particularly with respect to our product categories and our distribution channel. See Item 1A. Risk Factors for a more detailed description of the risks

View Full Filing

View this 10-K filing on SEC EDGAR