USANA Health Sciences Reports 7.2% Net Sales Decline for Fiscal Year 2024

USANA Health Sciences, Inc. reported a net sales decline of 7.2% for the fiscal year ending December 28, 2024, totaling $854.5 million, down from $921 million in 2023. The decrease was attributed to a reduction in both the average spend per customer and the number of active customers, which fell by 6% to approximately 454,000. The company's net earnings also decreased significantly, dropping 34.1% to $42 million, primarily due to lower sales, increased operating expenses, and a higher effective tax rate.

The company's financial performance reflects notable changes compared to the previous fiscal year. In particular, USANA's operations in Greater China, which represents a significant portion of its revenue, saw a decline in net sales of 3.6%, contributing to the overall decrease. The Southeast Asia Pacific and North Asia regions also experienced declines of 10.4% and 22.9%, respectively. The Americas and Europe segment reported a 5% decrease in net sales, indicating a broad-based challenge across multiple markets.

Strategically, USANA completed the acquisition of Hiya Health Products, LLC on December 23, 2024, acquiring a 78.85% ownership interest. This acquisition is expected to enhance USANA's direct-to-consumer capabilities, particularly in the children's health and wellness sector. The integration of Hiya is anticipated to provide synergies and growth opportunities, although it may also present challenges in aligning operations and realizing the expected benefits.

Operationally, USANA's employee headcount stood at approximately 1,700 as of the end of 2024, with a significant portion based in the United States and China. The company continues to focus on enhancing its Associate compensation plan to improve retention and attract new Associates. Additionally, USANA's investment in research and development remained steady at $11.6 million, reflecting its commitment to product innovation and quality. The company also reported a gross profit margin of 81.1%, an increase from the previous year, attributed to favorable product sales mix and lower material costs.

Looking ahead, USANA aims to execute a global growth strategy with a focus on increasing active customer numbers and enhancing product offerings. The company plans to refine its compensation structure, accelerate product launches, and strengthen brand messaging to improve market presence. However, USANA acknowledges the ongoing challenges posed by economic conditions, regulatory scrutiny, and competition in the direct selling industry, particularly in key markets like China.