We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Does Nu Skin's Mavely Sale Mean for Its Long-Term Strategy?
Read MoreHide Full Article
Nu Skin Enterprises Inc. (NUS - Free Report) has announced a strategic move that could shape its future. The company’s subsidiary, Rhyz Inc., completed the sale of its Mavely affiliate marketing technology platform to Later, a portfolio company of Summit Partners, for nearly $250 million. This deal includes the cash payout and a minority equity stake in the merged Later/Mavely business. As part of the deal, Mavely will continue to offer technology and social commerce solutions to enhance Nu Skin's affiliate marketing operations.
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.
NUS’ Positive Return on Investment
The sale of Mavely marks a notable success for Nu Skin, as the company generated a five-times return on its investment in Mavely, which it acquired in 2021. The deal will not only reduce the company’s debt but also fund innovations in its core business. In addition to driving growth within Nu Skin, the proceeds will enable the company to enhance shareholder value, particularly through its existing stock repurchase program.
Image Source: Zacks Investment Research
What Else Should You Know About NUS?
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. Despite efforts to stabilize its business, the Zacks Rank #5 (Strong Sell) company lacks clear visibility into when its core direct-selling business might return to growth.
Despite current challenges, Nu Skin's strategic sale of Mavely and its ongoing investments in innovation and growth through Rhyz position the company for a more resilient future, paving the way for long-term success in its evolving beauty, wellness and lifestyle ecosystem. NUS shares have gained 17.6% in the past three months against the industry’s decline of 17.5%.
Three Better-Ranked Picks
Abercrombie & Fitch Co. (ANF - Free Report) , is a specialty retailer of premium, high-quality casual apparel. The company currently flaunts a Zacks Rank #1 (Strong Buy).
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 - Free Report) , 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 - Free Report) , 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 earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year sales and earnings suggests declines of 5.3% and 19.2%, respectively, from the year-ago quarter’s reported figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What Does Nu Skin's Mavely Sale Mean for Its Long-Term Strategy?
Nu Skin Enterprises Inc. (NUS - Free Report) has announced a strategic move that could shape its future. The company’s subsidiary, Rhyz Inc., completed the sale of its Mavely affiliate marketing technology platform to Later, a portfolio company of Summit Partners, for nearly $250 million. This deal includes the cash payout and a minority equity stake in the merged Later/Mavely business. As part of the deal, Mavely will continue to offer technology and social commerce solutions to enhance Nu Skin's affiliate marketing operations.
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.
NUS’ Positive Return on Investment
The sale of Mavely marks a notable success for Nu Skin, as the company generated a five-times return on its investment in Mavely, which it acquired in 2021. The deal will not only reduce the company’s debt but also fund innovations in its core business. In addition to driving growth within Nu Skin, the proceeds will enable the company to enhance shareholder value, particularly through its existing stock repurchase program.
Image Source: Zacks Investment Research
What Else Should You Know About NUS?
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. Despite efforts to stabilize its business, the Zacks Rank #5 (Strong Sell) company lacks clear visibility into when its core direct-selling business might return to growth.
Despite current challenges, Nu Skin's strategic sale of Mavely and its ongoing investments in innovation and growth through Rhyz position the company for a more resilient future, paving the way for long-term success in its evolving beauty, wellness and lifestyle ecosystem. NUS shares have gained 17.6% in the past three months against the industry’s decline of 17.5%.
Three Better-Ranked Picks
Abercrombie & Fitch Co. (ANF - Free Report) , 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 - Free Report) , 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 - Free Report) , 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 earnings surprise of 4.7%, on average.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year sales and earnings suggests declines of 5.3% and 19.2%, respectively, from the year-ago quarter’s reported figures.