USANA Q2 Preliminary Sales Down 21% To $265 Million

USANA Health Sciences, Inc. (NYSE: USNA) today announced preliminary results for the second quarter ended July 2, 2022, and provided an updated outlook for fiscal year 2022.

The Company anticipates that second quarter 2022 net sales will be approximately $265 million, which compares with $337 million in the prior-year period. Earnings per share for the quarter are expected to be approximately $1.05, which compares with $1.87 during the second quarter of 2021.

“Our sales performance during the second quarter was below expectations, as COVID-related lockdowns, restrictions, and other disruptions continued in mainland China and other markets,”

said Kevin Guest, Chief Executive Officer and Chairman of the Board.

“These challenges were particularly disruptive to the regional sales program we offered in several key markets during the quarter, and ultimately caused participation in the program, sales results and active customer counts to come in lower than anticipated.

Importantly, this program was designed to be a catalyst for sales and customer growth not only during the quarter, but also in the second half of the year. As a result of this and the continued uncertainty surrounding the operating environment going forward, we anticipate softer sales and customer counts in the second half of the year.”

“We continue to evaluate opportunities in our markets around the world including promotional and incentive offerings in light of the operating environment and will make necessary adjustments to facilitate sales and customer growth going forward. That said, we remain committed to our established strategic growth objectives, including:

1. enhancing the digital experience for our customers to improve the overall online shopping experience;
2. improving Associate onboarding and training to help drive and sustain customer growth;
3. exploring additional promotional and incentive offerings on a market-specific basis;
4. launching experience centers in mainland China to facilitate our strategic growth plan for this key market;
5. pursuing accretive business development opportunities.

We continue to believe that these objectives remain a critical component to returning USANA to sustainable future growth.”

Doug Hekking, Chief Financial Officer, said,

“As a result of our first-half performance, and outlook for the remainder of the year, we now anticipate net sales between $1.015-$1.065 billion and diluted EPS between $3.85-$4.45. Additionally, inflationary pressures have persisted across several areas of our business, and we are continuing to work with our various stakeholders to manage operating expenses accordingly.

Despite current challenges, USANA remains very profitable and expects to generate strong cash flow in fiscal year 2022.”

About USANA

USANA develops and manufactures high-quality nutritional supplements, healthy foods and personal care products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France, Belgium, Colombia, Indonesia, Germany, Spain, Romania, and Italy. More information on USANA can be found at www.usana.com.