USANA Health Sciences, Inc. reported a solid start for the first quarter of 2025, with notable changes in key financial metrics compared to the same period in 2024. The company's net sales increased to $250 million from $228 million, reflecting a 10% year-over-year growth. In constant currency, the growth was even higher at 12%. Despite the growth in net sales, net earnings declined to $9.4 million from $16.5 million, representing a 43% decrease. Similarly, diluted earnings per share (EPS) decreased to $0.49 from $0.86.
Adjusted diluted EPS, a non-GAAP financial measure, also saw a decline from $0.86 to $0.73, representing a 15% decrease. Adjusted EBITDA decreased to $30 million from $33 million, indicating a 10% decline.
The company's direct selling active customers decreased to 459,000 from 494,000, while hiya active monthly subscribers reached 224,000.
In terms of regional performance, the Asia Pacific region saw a 6% decrease in net sales, with Greater China's net sales declining by 7%, North Asia remaining flat, and Southeast Asia Pacific decreasing by 1%. The Americas and Europe region also experienced a 9% decrease in net sales.
Despite the challenges, the company remains confident in its growth trajectory and reiterated its full-year outlook for fiscal year 2025. The outlook includes consolidated net sales ranging from $920 million to $1.0 billion and net earnings ranging from $29 million to $41 million. The company also repurchased 399,000 shares during the first quarter, with approximately $49 million remaining under the current share repurchase authorization as of the end of the first quarter.
USANA's management team emphasized the uncertain global macroeconomic environment due to volatility in international trade, tariffs, and consumer sentiment. Despite these challenges, the company remains focused on delivering the best possible shopping experience and value to its customers while actively managing inventory levels and sourcing.
For further details on the company's operating results, investors can access the management commentary document on the company’s website. Additionally, the company's management team will hold a conference call and webcast to discuss the announcement with investors on April 23, 2025, at 11:00 am Eastern Time. Today the company's shares have moved 1.7% to a price of $24.24. For more information, read the company's full 8-K submission here.
