NEW YORK (TheStreet) -- Nu Skin (NUS) shares are down -23.41% to $44.36 today after the company reported a 73% decline in quarterly profit as costs rose and sales in China, its biggest market, fell 12%, Reuters reports.
The company said it would restate first quarter results to include about $28 million in charges reflecting high inflation rates in Venezuela and a tax rebate for its China headquarters.
The charges hit net income for the first quarter ended March 31 by about $9.4 million.
Net income dropped to $19.5 million, or 32 cents per share, in the second quarter ended June 30 from $74.4 million, or $1.22 per share, a year earlier.
Total revenue fell 3% to $650 million.
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TheStreet Ratings team rates NU SKIN ENTERPRISES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NU SKIN ENTERPRISES (NUS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."