USANA Reports Record Third Quarter Net Sales
Salt Lake City, Utah-based USANA Health Sciences, Inc. recently announced financial results for its fiscal third quarter ended Sept. 30, 2017.
For the third quarter of 2017, net sales were $261.8 million compared with $254.2 million in the prior-year period, or a 3.0 percent increase year over year. There was no meaningful year-over-year impact from changes in currency exchange rates on quarterly net sales. The company’s total number of active customers increased by 2.4 percent year over year to 563,000.
Net earnings for the third quarter were $23.8 million compared with $30.1 million during the prior-year period, a decrease of 21.0 percent. Higher SG&A expense and a higher effective tax rate reduced net earnings during the quarter as they have throughout 2017.
Earnings per diluted share for the third quarter were 97 cents compared with $1.20 in the prior year period, a decrease of 19.2 percent. The expense related to China and the company’s internal investigation into its China operations, which was disclosed in February 2017, negatively impacted the third quarter by approximately $1.9 million and earnings per diluted share by 5 cents. Weighted average diluted shares outstanding were 24.6 million for the third quarter of 2017, compared with 25.1 million in the prior-year period.
“The third quarter was significant for USANA, not only for delivering record quarterly sales, but because of the accomplishments and announcements we made during the quarter,” said CEO Kevin Guest. “In particular, we celebrated our 25th anniversary at our annual International Convention, where we introduced a new skincare line, Celavive®, and announced our plans to expand into four additional European countries. Celavive is formulated with our cell-signaling technology, InCelligence. Both the launch of Celavive and the rollout of our European expansion will take place throughout 2018. These announcements were well received by thousands of our Associates at our convention and demonstrate our commitment to improving the health of more individuals and families around the world.”
Regionally, net sales in the Asia-Pacific region increased by 4.7 percent to $199.3 million. Within Asia Pacific, net sales increased 5.5 percent in Greater China; increased 35.9 percent in North Asia; and decreased 3.8 percent in the Southeast Asia Pacific region. Sales growth in Greater China was primarily driven by 8.7 percent active customer growth in Mainland China, while sales growth in North Asia resulted from 39.1 percent active customer growth in South Korea. The total number of active customers in the Asia-Pacific region increased by 6.5 percent year-over-year.
Net sales in the Americas and Europe region decreased by 2.1 percent to $62.5 million, largely due to an 8.6 percent decrease in active customers.
“For the first time in nearly three years, the overall revenue impact from changes in currency exchange rates was neutral,” said Guest. “Our Asia-Pacific region continues to be the driver of our sales growth. While we continue to face a challenging trend in the Americas and Europe region, we will continue to offer short-term promotions leading up to the launch of Celavive and the opening of our new European markets next year.”
To see the full USANA Q3 2017 report, click here.