Natural Health Trends 2025 Q2 Earnings Misses Targets as Net Income Falls 91%

Natural Health Trends (NHTC) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company’s net income fell significantly, marking a decrease of 91.3% to $15,000, as compared to $173,000 in 2024 Q2. Despite this decline, the company's earnings per share (EPS) remained stable at $0.00, in line with the previous year’s quarter. Management provided guidance indicating ongoing challenges due to trade tensions, which are expected to continue affecting consumer sentiment in key markets. The company plans to realign its supply chain to mitigate tariff-related risks and bolster long-term resilience.

Revenue

Natural Health Trends experienced a 6.3% decline in total revenue, reaching $9.81 million in 2025 Q2 compared to $10.47 million in 2024 Q2. Product sales accounted for $9.60 million, accompanied by administrative fees, freight, and other income of $262,000. Sales returns reduced total revenue by $45,000, culminating in net sales of $9.81 million.

Earnings/Net Income

Natural Health Trends maintained stable EPS at $0.00 in 2025 Q2 compared to 2024 Q2. Meanwhile, the company's net income declined to $15,000 in 2025 Q2, down 91.3% from $173,000 reported in 2024 Q2. The EPS stability highlights challenges in maintaining profitability amid decreasing net income.

Price Action

The stock price of Natural Health Trends has edged down 0.00% during the latest trading day, has edged up 0.65% during the most recent full trading week, and has climbed 6.70% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Natural Health Trends shares after a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days resulted in underperformance. Historically, this approach failed to leverage profit opportunities, yielding a compound annual growth rate (CAGR) of 0.00% and an excess return of -87.61% over the past three years. This indicates a persistent inability to capitalize on earnings releases, pointing to potential strategic reevaluation for investors aiming to optimize returns from NHTC's post-earnings price movements.

CEO Commentary

"Our second quarter sales reflected the heightened economic uncertainty caused by evolving trade tensions, which we expect will continue to heavily weigh on consumer sentiment in our biggest market," commented Chris Sharng, President of Natural Health Trends Corp. He noted that to mitigate tariff-related risks, the company is realigning its supply chain by transitioning production to trusted manufacturing partners in Asia, aimed at bringing operations closer to core markets and enhancing long-term resilience.

Guidance

The company anticipates that ongoing trade tensions will continue to impact consumer sentiment in its primary market. Management is focused on improving supply chain resilience through strategic adjustments in production locations, aiming for a more robust operational framework in response to market challenges.

Additional News

Natural Health Trends Corp. announced a quarterly cash dividend, payable on August 22, 2025, maintaining its commitment to returning value to shareholders despite recent earnings challenges. Furthermore, on May 22, 2025, OptiBiotix Health plc unveiled its SlimBiome products in partnership with Natural Health Trends, highlighting collaborative efforts in expanding product offerings. Additionally, the company held its Annual General Meeting on May 6, 2025, where strategic initiatives and shareholder interests were discussed, underscoring its focus on aligning operational strategies with market demands.