With the release of its second quarter results on Tuesday, USANA’s net sales increased to $233.2 million—up 23.9 percent compared to $188.3 million in the prior-year period. As a result, USANA has revised its outlook to include consolidated net sales between $900 million and $920 million, versus the previous outlook of between $870 million and $890 million. Earnings per share have been revised to between $6.90 and $7.20, versus the previous outlook of between $6.45 and $6.47.
The upswing in sales is attributed to a 40.3 percent growth in the number of active associates (to 397,000) and a 15.2 percent growth in the number of preferred customers. Additionally, $5 million in revenue that was deferred during the previous quarter was included in the Q2 amount.
Strong momentum in Greater China led the company’s increases. According to USANA’s Co-CEO Dave Wentz, in the Asia Pacific region, where USANA generated 72 percent of its sales last year, the Philippines and China are currently the nutrition company’s two hottest markets.
The company ended the quarter with a strong cash position—$150.9 million in cash and cash equivalents, along with zero debt and $132 million in net working capital. Notably, gross margins were reported to have improved 130 basis points year-over-year, due to changes in the marketing mix, price increases and higher net sales.
The webcast of the Q2 2015 Earnings Conference Call, which was held today at 11 a.m. EST, can be found here.
