Usana Health Sciences 2025 Q1 Earnings Net Income Declines 43.8%

Usana Health Sciences (USNA) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Revenue increased by 9.5% to $249.54 million, up from $227.80 million in 2024 Q1. The company reported lower net income and EPS compared to last year, missing the expectations. Despite this, Usana reiterated its fiscal year 2025 guidance, forecasting growth supported by its direct sales and Hiya businesses. The company remains vigilant amid global economic uncertainty and is managing its inventory to navigate challenges.

Revenue

The total revenue of Usana Health Sciences increased by 9.5% to $249.54 million in 2025 Q1, up from $227.80 million in 2024 Q1.

Earnings/Net Income

Usana Health Sciences's EPS declined 43.0% to $0.49 in 2025 Q1 from $0.86 in 2024 Q1. Meanwhile, the company's net income declined to $9.29 million in 2025 Q1, down 43.8% from $16.54 million reported in 2024 Q1. This decline in EPS and net income indicates a challenging quarter for the company.

Price Action

The stock price of Usana Health Sciences has edged down 0.28% during the latest trading day, has edged up 2.08% during the most recent full trading week, and has jumped 11.78% month-to-date.

Post Earnings Price Action Review

Over the past five years, the strategy of buying USNA shares after a revenue drop quarter-over-quarter and holding for 30 days has yielded poor results. This strategy resulted in a return of -12.03%, significantly underperforming the benchmark return of 83.12%. Furthermore, the excess return was -95.15%, with a compound annual growth rate (CAGR) of -2.56%, indicating substantial losses. Its Sharpe ratio was -0.40, underscoring its poor risk-adjusted performance. With a maximum drawdown of -12.49% and a volatility of 6.34%, the strategy carried significant risk and volatility, making it a losing approach during this period.

CEO Commentary

"USANA is off to a solid start to the year as we continue to execute our growth strategy through our core direct sales business and our recently acquired direct-to-consumer business, Hiya," said Jim Brown, President and Chief Executive Officer. He highlighted that net sales and Active Customers are growing modestly, and Hiya is experiencing strong growth in both net sales and Active Monthly Subscribers. Brown acknowledged the uncertainty in the global macroeconomic environment but maintained that underlying demand for USANA’s products remains strong, emphasizing the effective management of inventory and sourcing to navigate these challenges.

Guidance

USANA Health Sciences reiterates its fiscal year 2025 guidance, expecting consolidated net sales between $920 million and $1.0 billion, net earnings of $29 million to $41 million, and diluted EPS ranging from $1.50 to $2.20. The company anticipates top-line growth of 8% to 17% while factoring in a potential unfavorable currency exchange impact of approximately $30 million. Additionally, fiscal 2025 is noted to be a 53-week year, which will contribute to sales figures.

Additional News

On April 28, 2025, USANA's Celavive Postbiotic Rescue Serum was honored with a Good Housekeeping 2025 Beauty Award, recognizing its excellence in personal care products. Earlier, on April 22, 2025, USANA Health Sciences reiterated its full-year outlook, affirming confidence in its strategic direction. On April 25, 2025, USANA's stock price surged 16% following a positive earnings announcement, showcasing strong market response to the company's financial performance.