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Nu Skin Enterprises' CEO Discusses Q2 2012 Results - Earnings Transcript

Stocks in this article: NUS

We use this same approach in the second half of the year with LTO launches in Europe of R2 and the Body Spa in Japan and South Korea.

So the momentum we’re generating with the new region regional new product launches as a result of record level distributors and preferred customers nearly 900,000 at the end of the quarter. With each product launch, we’re improving our overall trial and our penetration rates and our sales leaders are also becoming more familiar with the process and frankly they become believers when they see the successful launch process reflected in their commission checks.

The second headline I want to site for the quarter is that while we’ve been very successful with our ageLOC product platform, the best of ageLOC is still yet to come. AgeLOC products in the market today consist of the Facial and Body Spas, the ageLOC skin care transformation system, vitality and R2, which are both energy products. But the larger categories are yet to come. Weight management in 2013, next year is going to be big. And then we will ageLOC, our core nutrition product, which will also be significant in the subsequent product launch. Both of these launches have more revenue impact than anything we’ve done so far.

And as we further refine our launch process to reach deeper into a growing consumer and sales leader base, we have great ammunition to sustain growth for the foreseeable future. Now, of course, we’re going to run into occasional quarters where comps are difficult because the timing of our launches may not always a line on exact annual anniversaries. So overall, we’re very confident that we have a very sound pipeline for growth for the next several years.

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