USANA Health Sciences Reports Decline in Net Sales and Net Earnings for Q3 and Nine Months Ended September 28, 2024

USANA Health Sciences, Inc. reported its financial results for the three and nine months ended September 28, 2024, revealing a decline in both net sales and net earnings compared to the same periods in the previous fiscal year. For the third quarter of 2024, net sales totaled $200.2 million, a decrease of 6.2% from $213.4 million in Q3 2023. Similarly, net sales for the nine months ended September 28, 2024, were $640.9 million, down 8.4% from $699.9 million in the prior year. The decline in revenue was attributed to a reduction in active customers and average spending per customer, exacerbated by challenging economic conditions, although modest price increases partially offset these declines.

Gross profit for the third quarter of 2024 was $161.0 million, representing 80.4% of net sales, an increase from 80.1% in the prior year, driven by lower material costs and favorable market mix changes. However, net earnings for Q3 2024 were $10.6 million, down 6.5% from $11.3 million in Q3 2023. For the nine-month period, net earnings decreased to $37.6 million from $47.0 million, with diluted earnings per share falling to $1.96 from $2.43.

USANA's total assets increased to $671.3 million as of September 28, 2024, up from $632.8 million at the end of 2023. Cash and cash equivalents also rose to $364.9 million, compared to $330.4 million at the end of the previous fiscal year. The company reported a net cash flow from operating activities of $55.2 million for the nine months ended September 28, 2024, an increase from $44.6 million in the same period of 2023.

In terms of strategic developments, USANA launched its Affiliate program in the United States, Canada, and Mexico in 2023, with plans to evaluate its introduction in other markets. The company also conducted its annual goodwill impairment test in Q3 2024, concluding no impairment was necessary. Additionally, USANA amended its Credit Agreement with Bank of America, replacing the Bloomberg Short-Term Bank Yield Index rate with the Secured Overnight Financing Rate (SOFR), maintaining a revolving credit limit of $75 million.

As of September 28, 2024, USANA had approximately 452,000 active customers worldwide, with a notable increase in the Greater China region, while the Americas and Europe saw a decline in active customers. The company continues to focus on its core product lines, with USANA Nutritionals contributing 71% of total product revenue in the Direct-selling segment, consistent with the prior year.