Nu Skin Enterprises, Inc. (NYSE:NUS) Q3 2019 Earnings Conference Call November 5, 2019 5:00 PM ET
Scott Pond - VP of IR
Ritch Wood - CEO
Ryan Napierski - President
Mark Lawrence - CFO
Conference Call Participants
Olivia Tong - Bank of America
Stephanie Wissink - Jefferies
Mark Astrachan - Stifel
Doug Lane - Lane research
Beth Kite - Citi
Good day, ladies and gentlemen and welcome to the Q3 2019 Nu Skin Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host, Scott Pond, Vice President of Investor Relations. Please go ahead.
Thank you, Laurie and good afternoon, everyone. On the call with me today are Ritch Wood, Chief Executive Officer; Ryan Napierski, President; Mark Lawrence, Chief Financial Officer; and Dr. Joe Chang, Chief Scientific Officer.
On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.
Also, during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statement. We believe these non-GAAP financial numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our Investor page at ir.nuskin.com for any required reconciliation of non-GAAP numbers.
Now I'd like to turn the time to Ritch.
Good afternoon everyone. Thank you, Scott and thank you all for joining us today. As we announced in our release, third quarter revenue was $589.9 million with earnings per share of $0.79. Despite a lower revenue base, earnings per share came in at the high-end of our guidance range as we benefit from a focus on operational efficiencies.
Our quarterly revenue continued to be impacted by limited sales meetings in Mainland, China. Let me begin in fact by providing an update on our business in Mainland, China and how we see things progressing there. First, we continue to see tremendous long-term growth potential with high demand for both our products and our opportunity.
In our nearly 20 years of operating in China, we have steadily build a strong foundation and invested in the future of this important market. Our long-term expectation and commitment to the market have not changed during this past year. Even though meeting restrictions have extended beyond what we initially anticipated. We expected meeting approvals to increase during the third quarter, although this did not happen, primarily because of the celebration surrounding the 70th anniversary of the founding of the People's Republic of China. Through September, slightly less than 60% of our sales leaders lived in provinces where meetings were being approved, and these meetings restrictions continued through October. Fortunately, we’re experiencing slightly improved meeting approvals in November, and we anticipate continued improvements into December.
We’re seeing sequential stabilization of our sales leaders and business in Mainland China. However, we anticipate it may take a few quarters to see a rebound in our sales leader numbers. We are pleased that our customer initiatives have been well received and have driven good customer growth. We anticipate a strong launch of our new beauty device product to drive sales leader growth in the second half of 2020. In October, we hosted our Global LIVE! Event in Salt Lake City designed to align and motivate our sales force and introduce our future product roadmap.