 Company: Nu Skin Enterprises, Provo, UT
Company Description: For more than 25 years, Nu Skin has been demonstrating its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. Nu Skin is the youngest $1 billion direct selling company, recently posting record 2009 revenue of $1.33 billion.
Nomination Category: Company / Organization Categories / Innovation Awards
Nomination Sub Category: Most Innovative Company of the Year - Up to 2,500 Employees
Nomination Title: Nu Skin Enterprises
1. Tell the story about what this nominated company achieved since January 1 2009 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:
II. Description of Accomplishments:
Innovation fueled Nu Skin’s success in 2009 with record revenue, a record number
of executive distributors and a record product launch of the ageLOC anti-aging
skin care system, and is also creating significant momentum for 2010 and beyond.
By focusing on innovation, Nu Skin has been able to not only weather the storm,
but surge ahead with impressive results.
• Generated $1.33 billion in revenue, a 7 percent improvement over the prior year;
• Significantly increased profitability by improving operating margin 180 basis
points to 11.9 percent of revenue, or 11.1 percent excluding restructuring;
• Generated earnings per share of $1.42, compared to $1.03 in the prior year.
• Increased our executive distributor count 8 percent
• Increased dividend payments for the 9th consecutive year, paying more than $28
million in dividends to shareholders in 2009.
• Increased stock price 150 percent.
On the product front, Nu Skin introduced a game-changing anti-aging product
platform – ageLOC. On the business side, the company enhanced its global
compensation plan through improved processes, focusing on recruiting, retention
and consumption, and also worked to streamline supply chain processes for
improved profitability.
In 2009, Nu Skin introduced of ageLOC – a unique anti-aging platform that
addresses not only the signs and symptoms of aging, but more importantly,
attacks the ultimate sources of aging—sources that are found in the human genome.
ageLOC science is exclusive to Nu Skin in three critical ways:
• First, the ability to identify functional groups of genes that Nu Skin calls
Youth Gene Clusters (YGCs);
• Second, proprietary technology to measure and target YGCs; and
• Third, an understanding of how to reset the activity of YGCs to a more
youthful level.
In the fourth quarter of 2009, Nu Skin introduced its first ageLOC skin care
system, a comprehensive daily regimen clinically proven to begin improving the
appearance of eight signs of aging in only seven days. The ageLOC skincare
system was validated by both clinical testing and genomic experimentation, and
generated tremendous enthusiasm among Nu Skin’s sales force. During its two-day
global distributor convention, the company sold $17 million of ageLOC products –
exceeding any previous convention product launch by more than 200 percent.
Nu Skin was the first to pioneer the seamless global compensation plan, but
local modifications added complexity. Nu Skin began consolidating its
compensation plan and incorporating innovative features to reward early
distributor leadership. Today, Nu Skin’s compensation plan is identical in
nearly all of its markets and this innovation has helped increase the number of
top distributors. In 2009, Nu Skin had a new Million Dollar Circle member every
six days, compared with every 10 days in 2008.
In 2009, Nu Skin revenue, earnings and operating margin jumped significantly. At
the end of 2007, operating margin was 7.5 percent. In 2009, operating margin was
11.9 percent, or 11.1 percent when excluding restructuring. And Nu Skin believes
it can continue to improve operating margin through 2010 and beyond.
2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made in the section above. IMPORTANT: Begin each link with http://, and enclose each link in square brackets; for example, [http://www.youraddress.com]:
Multimedia Release: Nu Skin Amplifies Business Opportunity with Game-Changing
Anti-Aging Approach
http://multivu.prnewswire.com/mnr/nuskin/38868/
Press Release: Nu Skin Announces Agreements with Stanford and LifeGen Technologies
http://www.nuskin.com/en_US/corporate/media_center/press_releases/2009/pr20091022.html
Press Release: Nu Skin Research Validates Youth Gene Clusters
http://www.nuskin.com/en_US/corporate/media_center/press_releases/2009/nu_skin_researchvalidatesyouthgeneclustersusinggenechiptechnolog.html
Nu Skin featured in Direct Selling News trade magazine
http://www.nuskin.com/content/dam/nse/images/0110_DSN_Nu_Skin_Eprint.pdf
Nu Skin featured in Investor’s Business Daily “The New America” section that
highlights innovative companies with great earnings and sales:
http://www.nuskin.com/content/dam/nse/images/Bretts/NuSkinEnterprises_Webprint.pdf
Nu Skin Reports Record Fourth Quarter and 2009 Results:
http://www.nuskin.com/en_US/corporate/media_center/press_releases/2010/pr20100204.html
3. Provide a brief (up to 100 words) biography about the leader of this nominated company:
In 2003, Truman Hunt was appointed president and chief executive officer of Nu
Skin Enterprises. Under his leadership, the company has continually innovated in
areas of product development, organizational alignment and customer
relationships. Hunt is also active in industry associations, serving as chairman
of the World Federation of Direct Selling Associations from 2005 to 2008. Hunt
was vice president and general counsel of Nu Skin from 1996 to 2003. Prior to
joining Nu Skin Enterprises, Hunt was a securities and business attorney in
private practice. Hunt earned a J.D. degree from the University of Utah.
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