What Does Nu Skin's Mavely Sale Mean for Its Long-Term Strategy?

Nu Skin Enterprises Inc. NUS 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 InvestmentThe 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 PicksAbercrombie & 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 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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks