Usana Health Sciences Inc (USNA) Reports Q3 2023 Earnings: Net Sales Down 9% Year-Over-Year
Third quarter net sales were $213 million, down 9% from Q3 2022.
Third quarter diluted EPS was $0.59, a decrease from $0.78 during Q3 2022.
Company narrows fiscal year 2023 net sales and diluted EPS outlook to $900 million to $920 million and $2.80 to $3.05, respectively.
Company plans to commence operations in India before year-end.
On October 24, 2023, Usana Health Sciences Inc (NYSE:USNA) announced its financial results for the fiscal third quarter ended September 30, 2023. The company reported a decrease in net sales and diluted EPS compared to the same period in 2022.
Financial Performance
Usana Health Sciences Inc (NYSE:USNA) reported third quarter net sales of $213 million, a decrease of 9% compared to $233 million during Q3 2022. The company's third quarter diluted EPS was $0.59, down from $0.78 during Q3 2022. The company also reported a decrease in active customers by 2% compared to Q3 2022.
Operating results for the third quarter did not meet our expectations, largely because of challenging economic conditions across many of our regions and a lower cadence of promotional activity during the quarter, said Jim Brown, President and Chief Executive Officer.
Regional Results
In the Asia Pacific region, net sales were $170 million, a decrease of 7% compared to Q3 2022. The number of active customers remained flat. In the Americas and Europe region, net sales were $43 million, a decrease of 14% compared to Q3 2022, and the number of active customers decreased by 9%.
Balance Sheet and Share Repurchase Activity
The company generated $22 million in operating cash flow during the third quarter and ended the quarter with $307 million in cash and cash equivalents while remaining debt-free. The company repurchased 180 thousand shares for a total of $12 million during the quarter.
Fiscal Year 2023 Outlook
Usana Health Sciences Inc (NYSE:USNA) revised its net sales and earnings per share outlook for fiscal year 2023. The company now expects net sales to be between $900 million and $920 million and diluted EPS to be between $2.80 and $3.05.
We are narrowing our fiscal 2023 guidance to reflect our third quarter operating results, expected fourth quarter results, and continued pressure from unfavorable foreign currency exchange rates. We remain committed to managing costs in line with expected sales performance while we continue to invest in strategic initiatives that we believe will drive sustainable long-term growth for USANA, said Doug Hekking, Chief Financial Officer.
Despite the challenging economic conditions, the company remains optimistic about its strategies and plans to continue investing in key strategic initiatives. The company also plans to commence operations in India before the end of the year.
This article first appeared on GuruFocus.
