USANA Health Sciences Reports Third Quarter 2019 Results
USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 28, 2019.
Third quarter 2019 net sales were $260.6 million, compared with $296.8 million in the prior-year period, or a 12.2% decrease year-over-year. The strengthening of the U.S. dollar unfavorably impacted net sales by approximately $6.0 million for the quarter. The Company previously estimated the impact from currency to be neutral for the second half of the year. The Company’s total number of active Customers at the end of the third quarter was 558,000, compared to 615,000 in the prior-year period.
Third quarter net earnings were $24.2 million, or $1.09 per diluted share, compared with $31.0 million, or $1.24 per share during the prior-year period.
“Although we continue to face a challenging sales environment in China and other regions, we were pleased to see sales in several markets improve on a consecutive quarter basis,” said Kevin Guest, Chief Executive Officer. “We offered several incentives and promotions around the world during the quarter, which positively impacted customer growth and added approximately $16 million to net sales. We also recognize, however, that we still have work to do in the Southeast Asia Pacific and Americas/Europe regions towards regaining sales momentum.”
Net sales in the Asia Pacific region decreased by 12.9% to $208.6 million for the third quarter of 2019. On a constant currency-basis, net sales in the Asia Pacific region decreased 10.7% during the third quarter of 2019. The total number of active Customers in the Asia Pacific region decreased by 10.1% year-over-year. Within Asia Pacific, net sales:
- Decreased 18.6% in Greater China (down 16.4% on a constant currency basis);
- Decreased 7.6% in Southeast Asia Pacific (down 6.8% on a constant currency basis); and
- Increased 17.1% in North Asia (up 24.3% on a constant currency basis).
Active Customers decreased by 17.3% in Greater China and by 2.6% in Southeast Asia Pacific. In North Asia, Active customers increased by 28.2%.
Net sales in the Americas and Europe region decreased by 9% to $52.0 million for the third quarter of 2019, primarily due to a 6.1% decrease in active Customers.
Mr. Guest continued, “In September, the Chinese government initiated a follow-up to the industry review they conducted during the first quarter of this year. We anticipated this 100-day follow-up review and will cooperate with the government throughout this process. To date, we have not experienced the negative media environment or restrictions on meetings that accompanied the government’s previous review.