USANA's Q2 2025: Dissecting Contradictions on Tariffs, China Performance, and Hiya Integration

Revenue and Earnings Growth:
- USANA Health Sciences reported consolidated net sales growth of 11% year-over-year in Q2 2025, with adjusted earnings per share increasing by 36% from the prior year.
- The growth was driven by strategic initiatives, including repayment of their line of credit, which ended the quarter debt-free with $151 million in cash on the balance sheet.

Acquisitions and Diversification:
- USANA's acquisition of Hiya and Rise Bar contributed to its ability to reach a broader demographic in the health and wellness market, providing diversification and strengthening its financial profile.
- Hiya reported strong year-over-year top-line growth with improved profitability, while Rise Bar achieved double-digit top-line growth.

Direct Sales Model Modernization:
- USANA implemented changes to its direct sales model, including enhancing its compensation plan and modernizing its brand messaging.
- These enhancements are designed to attract and reward new generations of entrepreneurs, foster customer acquisition and retention, and provide data-driven tools to brand partners.

China Market Performance:
- USANA's sales in China outperformed expectations despite a decline in active customers.
- This performance was supported by increased buy-up from consumers due to tariff uncertainties and a healthy and cohesive brand partner ecosystem.

Share Buyback and M&A Strategy:
- USANA accelerated share buybacks during the year, indicating a strong balance sheet and strategic capital allocation.
- The company remains open to new acquisition opportunities in the health sector, with its M&A department actively evaluating potential targets.