Shares of Nu Skin Enterprises Inc. NUS rose 9.8% on Monday as the company stated that its preliminary revenues for the fourth quarter of 2024 came in at the upper end of its projected range.

For the fourth quarter, Nu Skin earlier projected revenues of $410-$445 million, suggesting a 9-16% decline from the previous year’s reported figure.

Image Source: Zacks Investment Research

Last week, Nu Skin’s subsidiary, Rhyz Inc., completed the sale of its Mavely affiliate marketing technology platform to Later for nearly $250 million. The integration of Later and Mavely will provide enhanced capabilities to Nu Skin as it continues to expand its beauty, wellness and lifestyle ecosystem. The transaction also generates additional capital and resources, enabling increased innovation within Nu Skin's core business and further investment in Rhyz companies. This deal highlights the value of Rhyz in fostering and scaling impactful businesses that create synergies across Nu Skin's operations.

The sale of Mavely is a significant win for Nu Skin, as the company achieved a five-times return on its investment in Mavely, which it acquired in 2021. This transaction will help reduce Nu Skin’s debt and support growth in its core business. The proceeds will also be used to enhance shareholder value, particularly through the company's ongoing stock repurchase program.

Is All Rosy for Nu Skin?

The operating environment for Nu Skin's core business remains challenging due to macroeconomic factors and pressures within the direct selling industry. Inflationary pressures, political uncertainty and weak consumer sentiment in key markets are likely to persist into 2025. In addition, NUS’ strong international presence exposes it to the risk of volatile currency movements. Despite efforts to stabilize its business, Nu Skin lacks clear visibility into when its core direct-selling business might return to growth.

The Zacks Rank #5 (Strong Sell) company’s shares have slumped 33.4% in the past three months compared with the industry’s decline of 29.4%.

Three Better-Ranked Picks

Abercrombie & Fitch Co. ANF is a specialty retailer of premium, high-quality casual apparel. The company currently flaunts a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the company’s current fiscal-year sales and earnings implies growth of 15% and 69.3%, respectively, from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 14.8%.

The Gap Inc. GAP is a premier international specialty retailer offering diverse clothing, accessories and personal care products. It presently sports a Zacks Rank #1.

The Zacks Consensus Estimate for Gap’s current fiscal-year earnings and sales calls for growth of 0.8% and 41.3%, respectively, from the previous year’s reported figures. GAP has a trailing four-quarter average earnings surprise of 101.2%.

Helen of Troy HELE, a leading consumer products player that operates through a diversified portfolio of renowned brands, currently carries a Zacks Rank #2 (Buy). HELE has a trailing four-quarter negative earnings surprise of 4.3%, on average.

The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year sales and earnings suggests declines of almost 5% and 18.9%, respectively, from the year-ago quarter’s reported figures.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

The Gap, Inc. (GAP) : Free Stock Analysis Report

Helen of Troy Limited (HELE) : Free Stock Analysis Report

Nu Skin Enterprises, Inc. (NUS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research