Nu Skin Plunges After Currency Woes Hurt Its Sales Forecastby
Nu Skin Enterprises Inc. shares fell the most in more than a year after foreign-currency headwinds forced the cosmetics maker to slash its sales forecast.
The company now expects third-quarter revenue of $570 million to $573 million, according to a statement on Tuesday. Nu Skin, based in Provo, Utah, previously projected sales of as much as $620 million. Analysts had been predicting an even higher number, with their average estimate coming in at $622.6 million.
In addition the strong dollar hurting overseas revenue, the skin-care company is seeing slower-than-expected sales of new cosmetic oils in China, Chief Executive Officer Truman Hunt said in the statement. That may be a reflection of the country’s economy, he said.
The stock fell as much as 23 percent to $35.82 in New York on Wednesday, the biggest intraday drop since August 2014. The shares had been up 6.6 percent this year before the decline.