USANA Q3 Revenue Down 15 % To $233 Million

USANA Health Sciences, Inc. announced financial results for its fiscal third quarter ended October 1, 2022. Key Financial & Operating Results:

Third quarter net sales were $233 million as compared with $274 million during the third quarter of the prior year. Third quarter diluted EPS totaled $0.78 versus $1.36 during the third quarter of 2021. Company revises fiscal 2022 net sales and diluted EPS outlook to $955 million to $975 million and $3.15 to $3.40, respectively.

Q3 2022 Financial Performance – Consolidated Results

Net Sales $233 million

• -15% vs. prior-year quarter
• -9% constant currency vs. prior-year quarter
• -$15 million YOY FX impact, or -6%
  -9% sequentially in constant currency
• Diluted EPS $0.78 -43% vs. prior-year quarter -22% sequentially
  Diluted shares of 19.3 million, -4% year-over-year
  Active Customers 474,000 -18% vs. prior-year quarter -15% sequentially

“The challenging operating environment in Asia Pacific and the strengthening U.S. dollar negatively affected our operating results in the third quarter,”

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

“COVID-related disruptions and challenging economic conditions resulting from those disruptions negatively impacted our results in several key Asia Pacific markets where city-wide lockdowns and other COVID restrictions persisted. This difficult operating environment has impacted our entire industry.”

Guest continued,

“While we remain committed to our long-term business strategy, our team is evaluating and executing several short-term initiatives to regain momentum in our business. These initiatives include new and modified incentives in various markets and regions to make our overall incentive offering more rewarding and attractive to our sales force.

They also include more targeted, relevant in-person communications amongst our management team and Associate leaders, as well as accelerating our return to live sales force meetings and events in markets where that is possible.

In that regard, in August we held a successful 30th Anniversary Global Convention in Salt Lake City. The four-day event attracted 4,000 in-person and more than 50,000 virtual attendees. In-person gatherings of this nature, as well as smaller more targeted gatherings, have been, and will continue to be, invaluable in generating momentum for our business.

Finally, we continued to make progress on our digital strategy during the quarter by improving our consumer online shopping experience and will continue to execute our digital strategy going forward.”

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.