1. Amway for premium anti-aging skincare and wellness.

2. Mary Kay, but focused on science-backed anti-aging and nutrition.

• Nutritional Supplements: A variety of dietary supplements under the Pharmanex brand, promoting wellness, vitality, and targeted nutritional support.
• Personal Care Products: Skincare, body care, hair care, and cosmetic items designed for beauty and anti-aging benefits.
• Beauty Devices: Innovative electronic devices that enhance skincare routines, often used in conjunction with specialized topical products.

Nu Skin Enterprises (NUS) is a global direct-selling company. It primarily sells its products (skincare, personal care, and nutritional supplements) directly to individuals, rather than to other companies.

Customer Categories for Nu Skin Enterprises (NUS):

1. Brand Affiliates (Distributors): These are independent individuals who partner with Nu Skin to market and sell its products. They purchase products directly from Nu Skin (often at wholesale prices) not only for personal consumption but also to resell to others and to build and manage their own sales organizations. They are a fundamental part of Nu Skin's sales force and a major customer group as they acquire products from the company.
2. End Consumers/Customers: These are individuals who purchase Nu Skin products for their own personal use. They acquire products either directly from Nu Skin's official websites and channels, or more commonly, through a Brand Affiliate. This category also includes "Members" or "Preferred Customers" who might sign up for discounts or recurring subscriptions without necessarily pursuing the business-building aspect of a Brand Affiliate.

The key risks to Nu Skin Enterprises (NUS) are primarily driven by global economic conditions and their impact on the company's direct-selling model.

1. Macroeconomic Headwinds and Challenges in Customer and Affiliate Acquisition: Nu Skin has been significantly affected by persistent macroeconomic hurdles, including inflation, which pressure consumer spending and lead customers to seek lower-cost products. This environment has consistently impacted customer acquisition and retention globally, especially for Nu Skin's premium offerings. The company has reported declines in its customer base, paid affiliates, and sales leaders, indicating challenges in its core direct-selling business model.
2. Volatile Foreign Currency Movements: Given Nu Skin's extensive international operations across nearly 50 markets, the company is highly exposed to the risk of volatile currency movements. Adverse foreign currency fluctuations have repeatedly resulted in negative impacts on reported revenues, significantly affecting financial performance.
3. Declining Revenue and Profitability: Nu Skin has experienced a downward trend in revenue, with sales declining year-over-year in recent periods. This decline is coupled with shrinking operating margins and decreasing earnings per share (EPS), indicating difficulties in maintaining profitability amidst reduced demand and rising costs. This sustained decline in key financial metrics is a significant risk to the company's overall business quality and investor confidence.

There are two clear emerging threats for Nu Skin Enterprises:

• Shifting Consumer Sentiment and Skepticism Towards Direct Selling/Multi-Level Marketing (MLM) Models: Younger generations (Gen Z, Millennials) are increasingly skeptical of and publicly critical towards the MLM business model. This skepticism often stems from concerns about ethical recruitment practices, income transparency, high distributor churn rates, and the perceived pressure associated with direct selling interactions. This growing negative perception, amplified by social media and online discourse, poses an emerging threat to Nu Skin's ability to attract and retain new distributors and customers, which is fundamental to its growth and market expansion.
• Intensified Competition from Direct-to-Consumer (DTC) and E-commerce Beauty and Wellness Brands: The market is experiencing a proliferation of agile direct-to-consumer (DTC) and e-commerce brands that offer similar or highly specialized beauty, skincare, and nutritional products. These competitors often leverage sophisticated digital marketing, social media influencers, competitive pricing, and the convenience of direct online purchasing without an intermediary. This trend directly challenges Nu Skin's traditional reliance on its direct selling network, as consumers increasingly opt for the ease and perceived authenticity of purchasing directly from brands online, thereby eroding the unique value proposition of the direct selling model.

Global Beauty and Personal Care Products Market

Global Nutritional Supplements Market

Global Anti-Aging Products Market

Nu Skin Enterprises (NUS) is expected to drive future revenue growth over the next 2-3 years through several key strategic initiatives:

1. Launch and Expansion of the Prysm iO Platform: The introduction of the Prysm iO intelligent wellness platform is a significant catalyst for future growth. Following a limited preview for sales leaders in late Q4 2025, a broader consumer launch is anticipated in 2026. This AI-powered device is designed to measure skin carotenoid levels, provide personalized product recommendations, and is expected to boost the nutritional supplements division, potentially through subscription-based models.
2. Expansion into the Indian Market: Nu Skin is strategically entering the Indian market, with pre-market opening activities beginning in Q4 2025 and a full-scale launch targeted for the second half of 2026. India is viewed as a substantial long-term opportunity due to its large and growing middle-class segment, and the company plans to enter with a localized product portfolio and a digital-first infrastructure.
3. Growth in Emerging Markets: Nu Skin is focusing on accelerating growth in developing markets, particularly in Latin America and certain parts of Southeast Asia, which have shown strong sequential and double-digit year-over-year growth. The company plans to leverage a simplified and focused business model in these high-potential regions.
4. New Product Launches and Innovation: Continuous innovation and the introduction of new products are crucial for Nu Skin's growth. Recent and ongoing launches, such as ageLOC WellSpa iO, RenuSpa iO, TRMe, and ageLOC Tru Face Peptide Retinol Complex, are expected to contribute to revenue by capturing greater market share in the beauty and wellness sectors.
5. Strengthening the Rhyz Business Segment: The Rhyz segment, which includes manufacturing capabilities and affiliate marketing platforms like Mavely, is consistently highlighted for its strong performance and is expected to grow at a faster pace, contributing an anticipated 20% to 25% of overall revenue mix by 2025.

Share Repurchases

• Nu Skin repurchased $46.5 million of stock in Q2 2020, contributing to an approximately eight percent reduction in outstanding shares in the first half of 2020.
• The company did not repurchase any shares in Q3 2024 and Q4 2024.
• As of Q3 2025, Nu Skin repurchased $5.0 million in shares during the quarter and $10.0 million year-to-date, with $152.4 million remaining under its current share repurchase authorization. The authorized amount was $162.4 million as of Q4 2024.

Share Issuance

• Stock-based compensation, which typically involves share issuance to employees, was approximately $24.06 million in fiscal year 2020, $23.19 million in 2021, $12.37 million in 2022, $15.65 million in 2023, and $14.82 million in 2024.

Outbound Investments

• Nu Skin's strategic investment arm, Rhyz Inc., acquired the social commerce company Mavely in 2021. Nu Skin sold the Mavely platform for $250 million in January 2025, generating a five-times return on its 2021 investment.
• In 2023, the company acquired Dallas-based skincare company BeautyBio.
• Nu Skin Enterprises completed a merger/acquisition with LifeDNA as of May 3, 2023.

Capital Expenditures

• Nu Skin's capital expenditures were approximately $63.82 million in fiscal year 2020, $68.62 million in 2021, $59.06 million in 2022, $58.49 million in 2023, and $41.58 million in 2024.
• The primary focus of capital expenditures has been on strategic investments in technology and manufacturing, accelerating growth opportunities in Rhyz, and building out a digital-first affiliate opportunity platform.
• The company is also focusing investments on new market expansion, beginning with India anticipated in 2025, and advancing its Prysm iO intelligent wellness platform.