Nu Skin
This article was originally published in The Rose Sheet
Executive Summary
Business "simplification" initiative in 2006 intended to benefit direct-seller's sales force will result in $15 mil.-$25 mil. in restructuring charges to be taken within the next few quarters, Nu Skin announces Nov. 30. As part of its strategy, company plans to "eliminate organizational redundancies, revamp administrative support functions, prioritize investments to favor profitable initiatives and markets, and increase efficiencies in our supply chain process." In addition to revenue shortfall, charges also will cause negative impact on earnings per share, firm notes. Strength of U.S. dollar against other currencies also has led company to revise fourth quarter sales estimates to $285 mil.-$290 mil. versus prior expectations of $300 mil.-$305 mil. (1"The Rose Sheet" Oct. 10, 2005, In Brief). Decline in revenue is anticipated to reduce earnings per share in Q4 by about $.03, firm adds...