Nu Skin Enterprises Q2 2009 Earnings Call Transcript

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2009-07-29 15:07:42.0

Tags: U.S., Japan, Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, NU Skin Enterprises Inc.

Question-and-Answer Session

Operator

(Operator Instructions). And your first question comes from the line of Olivia Tong from Bank of America. Please proceed.

Olivia Tong - BAS-ML

Thanks. Good morning, guys. How are you?

Truman Hunt

Hi, Olivia. Good. Thanks

Olivia Tong - BAS-ML

Good. Want to start just maybe if we could go over a couple of the countries, since Japan declined at a much lower pace and had been in the past couple of quarters, and then also the U.S., a decline in the growth. So, just wondering if you could give a little bit more detail, between behind those two markets?

Truman Hunt

Sure, let's take Japan first. As you'll recall, Olivia, we parachuted a new management team in there, just over a year ago. And they've really have undertaken a complete start to finish reform there of how our business opportunities is presented to the field there. Had done a terrific job growing the top-line and really playing business initiatives in place that are returning the top-line around to get ahead of the right direction.

And it's really just a question of doing there what we're doing everywhere else in the world that is working so well. And they're executing that very effectively. And at the same time has significantly restructured the labor force and some of our overhead there to result in a significant improvement on the bottom-line. In 2010, just saw you know, we're looking at about a $10 million improvement to the bottom-line in Japan based on the restructuring that's already happened so far this year or so, good things happening there.

In the U.S., we see continued enthusiasm for the business and strength for the business. You'll recall that we grew at a very robust rate of about 20% in 2008. That growth rate has come down a little bit, as reflected in our second quarter result. But what leaves me feeling really pretty comfortable with the direction of the United States is that we just have great ambition to work with during the second quarter or in the second half.

We just introduced some of the ageLOC story, a good part of the ageLOC story to our top sales force leaders about a month ago. And they're just catching a vision now, reformatting their presentations to incorporate the ageLOC story. And working towards convention in October, here in United States we fairly just have great ambition to work with.

 

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