USANA Health Sciences (NYSE: USNA) shares are trading sharply lower after the company cut its FY2019 EPS and sales guidance below analyst estimates. The company also sees second-quarter EPS and sales guidance below analyst estimates.
USANA Health Sciences anticipates second-quarter net sales will range between $253 and $256 million, compared with $301 million in the prior-year period, and earnings per diluted share will range between 91 cents and 95 cents, compared with $1.36 per diluted share in the prior-year period.
“We continued to see a very challenging market in China throughout the second quarter, and these market conditions had a more significant impact on our results than we anticipated in late April,” said Kevin Guest, CEO of USANA Health Sciences.
“We began executing our planned promotional activity for 2019 during the second quarter, including in China. The promotions we offered have historically generated meaningful sales and customer growth, but did not generate the results we anticipated during the second quarter, as consumer sentiment remained low. Although we are confident that our strategy will drive long-term growth in the business, we now believe that it may take several months for consumer sentiment to return to normal in China,” adds Guest.
USANA Health Sciences shares were trading down 17.8% at $13.72 in Wednesday's pre-market session.
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