Usana Health Sciences, Inc. (NYSE: USNA) has reported its financial results for the third quarter ended September 28, 2024. The key financial and operating results for the period are as follows:
- Third quarter net sales were $200 million, a 6% decrease from $213 million in Q3 2023.
- Third quarter diluted earnings per share (EPS) stood at $0.56, down from $0.59 in Q3 2023.
The company has adjusted its fiscal year 2024 net sales outlook to approximately $850 million, with a diluted EPS of $2.45, compared to the previous outlook of $850 million to $880 million and $2.40 to $2.55, respectively.
In terms of the company's consolidated results for Q3 2024, net sales decreased by 6% compared to Q3 2023, while diluted EPS decreased by 5% compared to the same period.
The number of active customers also saw a decline, with 452,000 active customers in Q3 2024, representing a 3% decrease from Q3 2023.
The Asia Pacific region, which accounted for 80% of consolidated net sales, experienced a 6% decrease in net sales compared to Q3 2023. The greater China sub-region saw a 4% decrease in net sales, while North Asia and Southeast Asia Pacific experienced declines of 15% and 5% respectively.
In the Americas and Europe region, net sales decreased by 7% compared to Q3 2023, with a 10% decrease in active customers.
The company generated $30 million in operating cash flow during the third quarter and ended the quarter with $365 million in cash and cash equivalents, while remaining debt-free. However, no shares were repurchased during the quarter.
Looking ahead, Usana has adjusted its fiscal year 2024 guidance to reflect the year-to-date operating performance and planned promotional activity for the fourth quarter, citing continued downward pressure on customer acquisition and consumer spending in key markets.
In light of the challenges faced in 2024, the company emphasized that its business fundamentals remain strong, having generated $47 million of free cash flow year-to-date and maintaining a pristine balance sheet with $365 million in cash and no debt.
For further information on Usana’s operating results, the management commentary document has been posted on the company’s website under the investor relations section. Usana’s management team will also hold a conference call and webcast on October 23, 2024, to discuss the announcement with investors.
The market has reacted to these announcements by moving the company's shares -1.6% to a price of $34.48. For more information, read the company's full 8-K submission here.
