In This Article:
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Consolidated Net Sales Growth: 12% year over year in constant currency.
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Mainland China Net Sales Growth: 6% sequential growth in the first quarter.
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Mainland China Active Customers Growth: 4% sequential growth in the first quarter.
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Hiya Business Net Sales and Subscribers: Strong growth in net sales and active monthly subscribers.
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New Product Launches: Continued rollout of new products and planned launches in the second half of the year.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Usana Health Sciences Inc (NYSE:USNA) reported a 12% year-over-year growth in consolidated net sales in constant currency, aligning with internal expectations.
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The company saw sequential growth in net sales and active customers in its largest market, mainland China, with increases of 6% and 4% respectively.
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Usana Health Sciences Inc (NYSE:USNA) successfully expanded its product offerings in several markets, including a new chewable calcium product for children in China.
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The newly acquired Hiya business continues to deliver robust results with strong growth in net sales and active monthly subscribers.
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The company has proactively built inventory to mitigate potential tariff impacts and is exploring alternate sourcing relationships to address emerging trade policies.
Negative Points
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Consumer sentiment in key markets remains cautious, impacting overall business momentum.
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The potential impact of tariffs and trade policies remains highly uncertain, posing a risk to future financial performance.
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The India market is progressing slowly, with high expectations yet to be realized.
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Usana Health Sciences Inc (NYSE:USNA) faces competition from products with artificial ingredients, requiring differentiation through natural product offerings.
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The integration of Hiya presents challenges in balancing synergy opportunities without overwhelming the existing team and strategy.
Q & A Highlights
Q: What are USANA's plans for additional incentives in China and South Korea, and how do they impact sales? A: Brent Neidig, Chief Officer and Managing Director of China, explained that China had a strong quarter due to successful product promotions before the Chinese New Year. USANA plans to continue evaluating and implementing promotional incentives throughout the year to drive value for distributors and customers. South Korea also showed positive momentum, supported by a successful event in Nanjing with 13,000 attendees.