Usana Health Sciences 2025 Q2 Earnings Beats Expectations as Net Income Edges Up 0.1%

Usana Health Sciences (USNA) reported its fiscal 2025 Q2 earnings on July 22, 2025. The company exceeded analyst estimates with net sales of $236 million, surpassing expectations of $225.20 million. Diluted EPS also beat the projected $0.34, coming in at $0.52. Usana's fiscal year 2025 outlook remains unchanged, projecting consolidated net sales between $920 million and $1.0 billion, with adjusted diluted EPS expected to range from $2.35 to $3.00. The company anticipates sales growth of 8% to 17%, despite potential promotional costs and customer acquisition expenses.

Revenue

Usana Health Sciences reported a revenue increase of 10.8% for 2025 Q2, totaling $235.85 million, compared to $212.87 million in 2024 Q2.

Earnings/Net Income

Usana's EPS declined by 5.5% to $0.52 in 2025 Q2 from $0.55 in 2024 Q2, while net income showed marginal growth, rising to $10.44 million from $10.43 million in 2024 Q2. EPS performance indicates moderate challenges.

Price Action

The stock price of Usana Health Sciences climbed 3.75% during the latest trading day, edged up 0.67% during the most recent full trading week, and increased 3.58% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing USNA shares post-revenue increase on the financial report release date and holding for 30 days resulted in a -63.05% return, underperforming the benchmark return of 88.32% over the past three years. This approach exhibited a -18.15% CAGR, a maximum drawdown of 0.00%, and a Sharpe ratio of -0.57, indicating substantial volatility and a high-risk, low-reward scenario.

CEO Commentary

USANA Health Sciences delivered positive second quarter results, with an 11% year-over-year net sales growth, as stated by Jim Brown, President and Chief Executive Officer. The business performed in line with expectations, supported by a comprehensive commercial strategy for the direct sales segment, which includes enhancements to the incentive offerings and a new "Brand Partner" terminology. Mr. Brown highlighted upcoming announcements during the global convention will further advance this strategy, aiming to drive sustainable sales and Active Customer growth. The Hiya direct-to-consumer business also showed strong growth, supported by a new partnership with Disney.

Guidance

The company is reiterating its fiscal year 2025 outlook, projecting 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. Adjusted diluted EPS is expected to be between $2.35 and $3.00, with adjusted EBITDA projected at $107 million to $123 million. Doug Hekking, Chief Financial Officer, noted expectations for consolidated net sales growth of 8% to 17%, acknowledging potential promotional costs and customer acquisition expenses in the third quarter related to the new direct sales compensation plan.

Additional News

Usana Health Sciences announced the elevation of its business opportunities on July 1, 2025, aiming to enhance its direct selling segment. On July 2, 2025, the company scheduled its Q2 2025 earnings release for July 22, 2025, and planned a conference call for the following day. Furthermore, USANA Executive Chairman Kevin Guest invited stakeholders to explore opportunities for freedom during July, promoting engagement and participation in the company's strategic initiatives. These developments reflect Usana's ongoing commitment to growth and stakeholder engagement, emphasizing the evolution of its commercial strategies and the broadening of its market reach.