PROVO -- Lower than expected second quarter earnings have prompted Nu Skin Enterprises to postpone a public stock offering.
Company officials attributed the anticipated downturn in the quarter ending June 30 to a delay in the launch of its Pharmanex products, originally scheduled for early June. Nu Skin now plans to unveil the dietary supplement line in early July.Corey B. Lindley, chief financial officer, estimated second quarter earnings could be up to 10 percent lower than current analyst estimates.
"We believe the sales activity in Japan has been somewhat curtailed this quarter as distributors await the launch of Pharmanex products and a related enhancement to our compensation plan," said Steven J. Lund, president and chief executive officer.
Nu Skin, a direct seller of personal-care products, is optimistic that its third and fourth quarters will benefit from the Pharmanex marketing initiatives planned in Japan and is confident it will be positioned for renewed growth in the market, he said.
In light of the anticipated drop in Nu Skin stock prices, the company decided to delay a pending public offering of 10 million shares by existing stockholders. Nine million share are to be sold in the United States and Canada and 1 million in Japan.