USANA Health Sciences, Inc. reported third quarter net sales of $233 million, representing a 15% decline from last year’s $274 million during the same time period. Diluted EPS was also down significantly (43%) to $0.78 compared to $1.36 during the third quarter of 2021. Active customer numbers were down by 18% over the same time last year to 474,000.
Asia Pacific led the company’s regional net sales with $183 million and 362,000 active customers, down 17% and 18% respectively from the same period in 2021.
USANA ended the third quarter with $247 million in cash and cash equivalents and no debt.
“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, USANA 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. 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.”
The company has revised its fiscal 2022 full-year outlook to include consolidated net sales of $955 million-$975 million and a diluted EPS of $3.15-$3.40.