Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected top line results.</li><li>Further, management reiterated 2024 EBITDA guidance and increased the upper end of the revenue range.</li><li>There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates.</li></ul>

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected top line results.Further, management reiterated 2024 EBITDA guidance and increased the upper end of the revenue range.There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates.

BWMX: 1Q Review: In-Line Q, With Multiple Positives; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results after the close on Thursday.</li><li>We believe, with momentum returning at the Betterware division, JAFRA remaining on a new product and marketing focus, the United States market becoming a larger emphasis and BWMX continuing to offer a compelling (and secure) dividend yield of 8.5%, BWMX remains well positioned to reward investors on multiple levels, and we reiterate our Buy rating and $22.50 price target.</li></ul>

We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results after the close on Thursday.We believe, with momentum returning at the Betterware division, JAFRA remaining on a new product and marketing focus, the United States market becoming a larger emphasis and BWMX continuing to offer a compelling (and secure) dividend yield of 8.5%, BWMX remains well positioned to reward investors on multiple levels, and we reiterate our Buy rating and $22.50 price target.

BWMX: 1Q Preview: Moving to the Offensive; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog.</li><li>While the level of newness declined, perhaps due to the shifting Easter Holiday, the key positive trends remain, from higher YoY SKU levels, continued emphasis on full price selling, expansion into innovative adjacent categories and leveraging an improving supply chain to offer values in a still somewhat inflationary environment.</li><li>As such, we remain upbeat on the potential for another YoY up quarter for the Betterware division and believe the division remains poised to shift again into registering increases in the level of Associates, which would be the next key step forward in the turn.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog.While the level of newness declined, perhaps due to the shifting Easter Holiday, the key positive trends remain, from higher YoY SKU levels, continued emphasis on full price selling, expansion into innovative adjacent categories and leveraging an improving supply chain to offer values in a still somewhat inflationary environment.As such, we remain upbeat on the potential for another YoY up quarter for the Betterware division and believe the division remains poised to shift again into registering increases in the level of Associates, which would be the next key step forward in the turn.

BWMX: Snapping the Catalog: Remain On Trend in April; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the March catalog.</li><li>March completed a 1Q with material YoY positives, from higher SKU counts, rising cadence of new and debuting products, a return of key favorites and continued reductions in overall discounting levels.</li><li>We believe Betterware management has been able to capitalize on the return to normalcy for their supply chain to roll out compelling new items, offer normalized pricing and drive higher levels of orders and, in 1Q, have begun to register increases in the overall levels of Associates and Distributors.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the March catalog.March completed a 1Q with material YoY positives, from higher SKU counts, rising cadence of new and debuting products, a return of key favorites and continued reductions in overall discounting levels.We believe Betterware management has been able to capitalize on the return to normalcy for their supply chain to roll out compelling new items, offer normalized pricing and drive higher levels of orders and, in 1Q, have begun to register increases in the overall levels of Associates and Distributors.

BWMX: Snapping the Catalog: 1Q Registered Progress; Reiterate Buy, $22.50 PT

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>Direct selling as a business model has a large global presence.</li><li>According to the World Federation of Direct Selling Associations (WFDSA), approximately 77% of global direct sales were conducted outside the US in 2022.</li><li>Therefore, foreign currency exchange rates can have a significant impact on reported earnings and cash flows for the dollar-based direct selling platforms, such as NUS, HLF, USNA, and LFVN.</li></ul>

Direct selling as a business model has a large global presence.According to the World Federation of Direct Selling Associations (WFDSA), approximately 77% of global direct sales were conducted outside the US in 2022.Therefore, foreign currency exchange rates can have a significant impact on reported earnings and cash flows for the dollar-based direct selling platforms, such as NUS, HLF, USNA, and LFVN.

Direct Sellers - Currency Outlook Remains Mixed

United States

Nu Skin Enterprises, Inc. is a global direct selling company.  The Company distributes premium quality personal care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region.  The Company provides marketing and distribution of technology-based products through Big Planet, Inc.

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Nu Skin Enterprises Inc A (NUS US)

BWMX: 1Q Review: In-Line Q, With Multiple Positives; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected...

Small Cap Consumer Research

BWMX: 1Q Preview: Moving to the Offensive; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results...

Small Cap Consumer Research

BWMX: Snapping the Catalog: Remain On Trend in April; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog. While the level of...

Small Cap Consumer Research

BWMX: Snapping the Catalog: 1Q Registered Progress; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the March catalog. March completed...

Small Cap Consumer Research

Direct Sellers - Currency Outlook Remains Mixed

According to the World Federation of Direct Selling Associations (WFDSA), approximately 77% of global direct sales were conducted outside the US in...

Water Tower Research

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