Chinese Direct Sales Investigation Weighs on Nu Skin Outlook
Nu Skin exceeded first-quarter estimates, but guidance for its second quarter disappointed as business operations in China resume following an investigation into its direct-selling practices.
Nu Skin exceeded first-quarter estimates, but guidance for its second quarter has disappointed Wall Street. The direct seller of beauty products expects sales of $700 million and EPS of $1.25, lower than forecasts of $790 million and $1.43. Lower guidance comes as business operations in China resume following an investigation into its direct-selling practices. Earlier in the year, the company was penalized $540K by Chinese authorities as the country cracks down on unethical sales practices.
