Nu Skin to Shut Down Stores
November 7, 2007 | By Monika Mundell | 1 Comment »
It looks like the MLM company Nu Skin got themselves into some unexpected financial strive. According to news sources they are shutting down some 67 stores within China as well as cutting staff at their Provo headquarters.
Apparently their shares took a dive by 17 percent this last Monday and the cost of hosting their international Salt Lake City convention for $6.8 million might have been a bit over budget. According to the company their declining business in Japan and China was below their expectations and now staff has to pay the cost.
It is rarely a good thing when big companies such as Nu Skin start to shut down some of their premises. Alarm bells go off and one has to wonder whether this is the beginning of the end?
One would further wonder that by setting up a huge MLM company budgeting would have to be at the forefront of the director’s minds. Looking at this scenario certainly begs to ask questions as to why business has to reverse like this instead of moving ahead step by step?
Investors seem to call the shots right now and it looks like some heads are going to roll over this muddle up of management. According to Nu Skin they are uncertain at this stage of how many of their 1,200 employees in Utah will get the marching order. Time will tell as usual.
Regardless of the poor Asian revenue, Nu Skin’s earning in Europe and the States have increased in the third quarter. On Mondays stock dive they announced their intentions of wanting to buy back $100 million of their shares.
Nu Skin also plans to increase their profits for the year 2008. Hopefully by then they have learned their lesson.
Monika
Tags: direct marketing, mlm, MLM News, nu skin
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