Nu Skin Enterprises (NYSE:NUS) has gone through stagnation years with revenue fluctuates between US$2-3 billion annually. And in 2023, the number fell below US$2 billion and continued to decline into 2024, with debt increasing.

To improve the situation, Nu Skin sold one of its valued revenue contributors Mavely, an affiliate marketing technology platform, to Later for $250 million in early 2025.

• Warning! GuruFocus has detected 5 Warning Signs with NUS.

Since the acquisition in 2021, Mavely had generated five times its acquisition value and losing it is a hard decision. By selling Mavely, Nu Skin will lose the sales from Mavely, but this step but must be done to provide more cash for innovation and to balance its financial position.

It's the price that needs to be paid by Nu Skin for losing in competition to other beauty brands such as Ulta Beauty that thrives under the same macroeconomic challenges and higher cost of goods sold.

You can make more informed investment decision by visiting GuruFocus now and deep dive into Nu Skin's performance with charts, breakdowns, 30-year financial data, and more!