USANA Q2 Revenue Down 21% To $264 Million

USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal second quarter ended July 2, 2022.

• Second quarter net sales were $264 million as compared with $337 million during the second quarter of the prior year.
• Second quarter diluted EPS totaled $1.00 versus $1.87 during the second quarter of 2021.
• Company reiterates fiscal 2022 net sales and diluted EPS outlook of $1.015 billion to $1.065 billion and $3.85 to $4.45, respectively.

“As indicated in our preliminary results release on July 6th, we continue to experience COVID-related disruptions in several key markets, including mainland China. This caused participation in sales programs, Active Customer counts, and financial performance to come in lower than anticipated,”

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

“Although many of these disruptions were outside of our control, and while we faced a tough year-over year comparable due to the timing of a successful sales program in 2021, our second quarter results were not up to our standards.

Nevertheless, we remain committed to our business strategy which we believe will deliver sustained, long-term growth in customer counts, net sales, and EPS.

Important elements of this strategy include

1. enhancing 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 promotions and incentives on a market-specific basis;
4. launching experience centers in mainland China to promote growth in this key market; and
5. pursuing accretive business development opportunities.

“During the quarter, we streamlined our Associate onboarding program and provided Associates with additional tools to help them more efficiently and effectively setup and operate their businesses.

Our team also launched improvements to our China shopping app to further improve the online shopping experience in that market. Although it takes time to recapture momentum, we are confident these strategies will deliver long-term growth.”

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.