USANA announced its third quarter 2024 financial results. Third quarter net sales were $200 million with a diluted EPS of $0.56, down from $213 million and $0.59 respectively during the previous year’s quarter. Active customers during the quarter were down by 3% year over year and sequentially, totaling 452,000 people.
“Third quarter operating results reflected continued top line headwinds across many of our key markets,” said Jim Brown, President and Chief Executive Officer. “Our sales force continued to face challenges in attracting new customers as consumer sentiment remained cautious, including in our largest market, mainland China. Despite these challenges, we remain confident in our direction and continue to make progress on the five key initiatives that underpin our long-term strategy. Our commercial team, which was reorganized earlier this year, has been executing on these initiatives to enhance the overall value proposition of our business to our customers and we are beginning to see results in several of these areas.”
Asia Pacific continued to be the strongest market for the company, with $160 million in Q3 net sales, a 6% decline from Q3 2023. Americas and Europe markets reached $40 million in net sales, a 7% year-over-year decline, and 92,000 active customers, representing a 10% year-over-year decline.
“Third quarter net sales were modestly below expectations as we continue to see downward pressure on customer acquisition and consumer spending in several key markets, resulting in lower customer counts and average spend per customer,” said Doug Hekking, USANA Chief Financial Officer. “We are monitoring the recently-announced stimulus initiatives in China, but we do not expect them to meaningfully impact our near-term operating results. Accordingly, we have adjusted our fiscal 2024 guidance to reflect year-to-date operating performance as well as promotional activity planned for the fourth quarter. Notwithstanding the macroeconomic challenges we have faced in 2024, our business fundamentals remain strong. We’ve generated $47 million of free cash flow year-to-date and our balance sheet remains pristine with $365 million of cash and no debt.”
USANA provided updated financial guidance for fiscal year 2024 to include net sales of approximately $850 million with a diluted EPS of $2.45.
