USANA Health Sciences, Inc. released its Q1 2021 financial reports. The company’s first quarter net sales increased 15.5% year-over-year, totaling $308 million, and a diluted EPS increase of 17.9% year-over-year to $1.45. There was also a repurchase of 721,000 shares for $69.5 million during Q1. Active customers during the quarter increased 7.7% over the same time period in 2020, to 617,000 customers.
“We had an excellent start to the year largely due to continued strong consumer demand for our high-quality products,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “Our strong top-line performance was driven by double-digit year-over-year sales growth in each of our regions, and we expect the execution of our 2021 global growth strategy will continue to generate growth in the remainder of the year.”
Q1 2021 regional highlights include:
Asia Pacific Region
- Net Sales: $251.3 million
- Active Customers: 472,000
Asia Pacific Sub-Regions
- Net Sales: $149 million
- Active Customers: 276,000
North Asia
- Net Sales: $30.2 million
- Active Customers: 59,000
Southeast Asia Pacific
- Net Sales: $21 million
- Active Customers: 137,000
Americas and Europe Region
- Net Sales: $56.7 million
- Active Customers: 145,000
“We successfully launched our new Active Nutrition line in late March and have received positive feedback on these new products from our customers,” Guest said. “The Active Nutrition line promotes healthy weight management, digestive health, energy and hydration. While the initial launch was limited to the United States, Canada, Mexico, Australia, and New Zealand, we will roll these products out to additional markets throughout the year. During the quarter, we also continued to advance our digital experience strategy with an emphasis on improving our overall shopping experience, particularly in China. Enhancements will allow consumers to easily interact with USANA while sharing their experiences with others.”
USANA’s outlook for fiscal year 2021 has been revised to include this strong start. Consolidated net sales are now expected to settle between $1.24-$1.28 billion with a diluted EPS between $6.15-$6.50.
“Given our first quarter results, we are increasing our outlook for 2021, which now reflects top-line growth between 9.3% and 12.8%,” said Doug Hekking, Chief Financial Officer. “Notably, we expect sales to accelerate during the second quarter, due largely to a short-term sales program we are offering around the world during the quarter. We offered a similar short-term sales program during the third quarter of 2020, which was successful and received a positive response from our associates around the world. Following the conclusion of this program, we expect to see year-over-year sales growth, albeit at a decreased growth rate from the second quarter of this year. Our updated 2021 outlook continues to reflect an operating margin between 14.8% and 15.2%, continued favorable foreign currency environment, and an increase in spending in the back half of the year related to travel and event-related costs. We continue to project an effective tax rate of 31% for the year and a diluted share count of 20.7 million, which reflects share repurchases made during the first quarter. Overall, we had a solid start to the year and I believe we are positioned to deliver record results in 2021.”
