USANA Health Sciences, Inc. announced a record-breaking second quarter, reporting a 30.1% increase in net sales year-over-year, totaling $336.8 million. The company’s active customers also increased 8.8%, to a record-breaking total of 652,000. Diluted EPS increased 47.1% year-over-year to $1.87.
The company’s Asia Pacific region was clearly the sales and growth leader, with $279 million in net sales and 513,800 active customers.
“Strong consumer demand for our high-quality health products, coupled with the execution of our previously announced short-term sales program, contributed to our record net sales and customer numbers for the second quarter,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “Our-top line performance was driven by strong double-digit, year-over-year sales growth in each of our regions including a 16.5% increase in the Americas and Europe region and a 33.3% increase in the Asia Pacific region.”
USANA reported no debt and $256 million in cash and cash equivalents following a repurchase of 304,000 shares for $29.7 million. Outstanding diluted shares totaled 20.4 million with $51 million remaining under the existing share repurchase authorization.
“We continue to execute our strategy to enhance the overall shopping experience for customers in all of our markets and made further progress on this initiative during the quarter,” Guest said. “Additionally, the rollout of our Active Nutrition line, which was introduced in late March, is proceeding according to plan. As we look ahead to the second half of the year, we are seeing a more challenging operating environment in several markets due to escalating conditions related to the COVID-19 pandemic. We believe, however, that the successful execution of our strategy will deliver long-term sustainable growth.”
Outlook for fiscal 2021, according to the company, includes $1.24-$1.28 billion in consolidated net sales and $6.15-$6.50 diluted EPS.
“Our record second quarter results, highlighted by robust sales and earnings-per-share growth, were in-line with management’s expectations and were driven, in large part, by the sales program offered during the quarter, said Doug Hekking, Chief Financial Officer. “A similar sales program was offered during the third quarter of 2020, which was also very successful. Note that the timing of the 2020 sales program, as well as the additional week of sales in the fourth quarter of 2020, create a challenging comparable for us in the back half of 2021. Nevertheless, we continue to believe that 2021 will be another record year for USANA.”