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Soldiering Through Scrutiny, Nu Skin Launches Growth Plan For China

This article was originally published in The Rose Sheet

Executive Summary

Nu Skin aims to achieve “higher levels of penetration” in China by expanding its direct-selling platform to additional provinces and tripling the number of stores and sales centers it operates by 2017. Meanwhile, short-seller Citron Research directs FDA and FTC to advertising for Nu Skin’s ageLOC line, which it asserts is rife with “unsubstantiated medical claims.”

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Following allegations from short seller Citron Research that it operates an illegal “pyramid compensation scheme” in China, Nu Skin gives investors a peek into its business model. The firm recorded sales growth of 40% in its second quarter, driven by a 152% jump in China, and “the best is yet to come,” Nu Skin says.

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