Nature's Sunshine Products Q2 2025: Navigating Contradictions in Digital Growth and International Sales

Digital business and sales growth expectations, Asia sales growth expectations, North American digital business performance, digital business growth strategy, and international market performance are the key contradictions discussed in Nature's Sunshine Products, Inc.'s latest 2025Q2 earnings call. These inconsistencies could impact investor trust and stock price volatility, as they involve strategic shifts, financial forecasts, and market growth expectations.



Revenue and EBITDA Growth:
- Nature's Sunshine reported revenue of $115 million for Q2, up 4% year-over-year (YoY), and adjusted EBITDA of $11 million, an 8% increase YoY.
- The growth was driven by strong execution across the business, particularly in Japan, Central Europe, and improved traction in North America, with a notable acceleration in the digital business.

Asia Pacific Performance:
- Sales in Asia Pacific increased by 5% to $52.7 million, with Japan seeing a 27% increase in sales, driven by customer and order growth.
- The growth in Japan was fueled by attracting younger consumers and leveraging the Subscribe & Thrive Autoship program, while declines in Taiwan and South Korea were attributed to a challenging macroeconomic environment and political instability.

North America Momentum:
- North America sales grew by 4%, with the digital business expanding by 34% and the Subscribe & Thrive Autoship program now representing over 50% of DTC sales.
- The accelerated growth in North America was attributed to improved field fundamentals, disciplined sales support, and increased consumer engagement, with a focus on digital strategy.

Gross Margin Improvement:
- Gross margin improved by 36 basis points to 71.7%, driven by gross margin savings initiatives.
- Despite market mix and foreign exchange headwinds, the company expects continued modest improvement in gross margin, supported by pricing and sourcing initiatives.

Innovation and New Products:
- Nature's Sunshine continues to focus on innovation and new product development, with products like Marine Glo marine-based collagen showing early success in the market.
- The introduction of new products aims to attract new customers, increase repeat purchases, and drive long-term business momentum.