USANA Health Sciences, Inc. released its financial results for the first fiscal quarter, posting net sales of $248 million, a 9% sequential increase from $228 million in the fourth quarter of 2022, but a net sales decline from the first quarter of 2022, which totaled $273 million.
First quarter diluted EPS was $0.95, compared to $1.15 during the same period of 2022 and $0.66 during the fourth quarter of 2022.
“USANA’s solid first quarter performance was driven by several initiatives that helped stabilize active customer counts and contribute to sequential quarter net sales growth,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “Our results during the first few weeks of the quarter benefitted from increased demand for several of our health products in China following the government’s shift in COVID policy. In addition, our announcement of product price increases in several markets stimulated product purchasing ahead of those increases.”
Asia Pacific continued to be the strongest market for USANA, with net sales of $200 million and 386,000 customers. Within this region, Greater China posted $124 million in net sales, a 5% sequential increase, but a 7% decline from the same period last year. The Americas and Europe posted $49 million in net sales, a 9% sequential increase, with 105,000 active customers.
“We continue to make progress on several key strategic initiatives for 2023, most of which are aimed at increasing the active customer base and positioning USANA for long-term sustainable growth,” Guest said. “Key among these initiatives is the return to live sales meetings and events where possible. The in-person meetings and events held during and following the first quarter were targeted at engaging and further incenting our sales force and the feedback from these events has been encouraging. We remain optimistic that our overall strategy for the year will support customer engagement and stimulate positive momentum in our business.”
USANA is now revising the lower end of its net sales and earnings per share guidance for fiscal 2023 as a result of first quarter performance, with a consolidated net sales outlook of $875-$950 million and a diluted EPS of $2.40-$3.30.
The company ended the quarter with $295 million in cash and cash equivalents and no debt.
