USANA Health Sciences Inc. (NYSE—USNA) is trimming its full-year sales guidance after a softer-than-expected third quarter.
The maker of health and wellness products sees 2016 revenue of $1.0 billion to $1.1 billion, versus July guidance of $1.02 billion and $1.05 billion. Management also narrowed its earnings outlook to $7.90 to $8.10 per share, from the previously stated $7.90 to $8.20 per share.
In the third quarter, overall sales rose 9 percent to $254.2 million, compared with $233.3 million a year ago. Analysts polled by Thomson Reuters had predicted sales of $263.4 million.
Earnings were $2.40 per share, up 25 percent from a year ago, largely due to the company’s adoption of a new accounting standard, which resulted in a significantly lower effective tax rate. By comparison, analysts had expected to see earnings of $2.13 a share.
Management said results were impacted by a modest quarter in Greater China, where sales came in below expectations despite an 11 percent increase over the prior year. In the wider Asia-Pacific region—the company’s largest in terms of revenue—sales were up 13 percent to $190.4 million.
USANA is in the midst of upgrading its global IT infrastructure and building a new state-of-the-art production facility in Beijing, which is expected to be operational by the end of the year.
“With this facility coming online, we are making preparations to begin offering growth initiatives in China in early 2017, but continue to believe that we will be in a better position to fully drive growth in China and our other markets when the improvements to our IT infrastructure are complete,” said Dave Wentz, Co-CEO of USANA.
The company also announced that its board has approved a two-for-one split of USANA common stock.