Nu Skin Enterprises (NUS) Defends Itself... Sort Of

While off the lows, shares of Nu Skin Enterprises Inc. (NYSE: NUS) are still 9 percent lower going into the close following an earlier negative report from Citron Research.

While the company hasn't issued a formal press release, Deutsche Bank's Beverages, Household and Personal Care Analyst Schmitz held a conference call with Nu Skin's CEO Hunt and CFO Wood at 1:30PM ET.

On the call, it was noted (according to sources on the call):

• China regulators investigated them 8 times and still in business and have 12 new direct selling licenses
  
• China views them well
  
• Short sellers playing govt regulators now and should leave that to regulators

Separately, the company issued a response to CNBC on the allegations. Nu Skin told them they are in compliance with China regulation and have stores in the country.

In a full statement, Nu Skin said: "We are confident that our China operations are in compliance with applicable regulations as interpreted and enforced by the government of China. Nu Skin has an eight-year history of doing business in China under these regulations, and the government has regularly reviewed our business activities. In the past year the government has issued Nu Skin new direct selling licenses in several cities and municipalities.

China’s regulatory framework is unique. Consequently, our business model in China is different than our global business model. Nu Skin utilizes retail stores with an employed sales force and contractual sales promoters, which we supplement with a direct sales opportunity in those locations where we have obtained a direct selling license. Our compensation is similar to other direct selling companies operating in China. Our employed sales force is compensated based on a number of performance factors that are similar to any other sales organization in any industry: productivity, effectiveness of sales management and leadership, as well as compliance with local regulations and company policies”

We actively educate our sales force to follow all regulations and company policies and procedures. Any member of our sales force not operating in accordance with local law or with our company policies is subject to discipline."

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Solaris Energy Infrastructure to Join S&P SmallCap 600
• Deutsche Bank Starts Echo Global Logistics (ECHO) at Buy
• Inventurus Knowledge Solutions completes TruBridge acquisition at $26.25 a share