Group 1 - USANA President and CEO Jim Brown has been elected to the Board of Directors of the Direct Selling Association (DSA) for a three-year term [1] - Jim Brown has over 25 years of leadership experience, with 19 years at USANA in various roles [1] - The DSA has been a national trade association for direct selling companies for over a century, generating $36.7 billion in retail sales in 2023 [2] Group 2 - In 2023, 6.1 million entrepreneurs in the U.S. engaged in direct selling, providing a personalized buying experience for customers [2] - DSA CEO David Grimaldi expressed confidence in Jim Brown's impact on the board, highlighting his significant experience in the industry [3] - USANA has been recognized for its quality nutritional and lifestyle products for over 30 years [4]

Company Overview - USANA Health Sciences is a global leader in health and wellness products, emphasizing the importance of social wellness in building a successful business [8] - Since its founding in 1992, USANA has focused on clear communication to build trust with customers and distributors across 25 countries [8] Leadership Insights - Kevin Guest, Executive Chairman of USANA, encourages individuals and families to celebrate National Outdoors Month by engaging with nature, drawing from his personal experiences growing up in Montana [1][2] - Guest's book, "All the Right Reasons: 12 Timeless Principles for Living a Life in Harmony," highlights the transformative power of nature and its role in achieving physical, mental, and emotional well-being [2][6] Benefits of Nature - Physical Health Improvements: Engaging in outdoor activities enhances physical fitness, cardiovascular health, and energy levels [3] - Mental Well-Being Enhancement: Nature has been shown to alleviate anxiety and improve mood, acting as a healer that restores balance [4] - Stress Reduction: Time spent in green spaces lowers cortisol levels, aiding in stress management [4] - Creativity Boosts: The outdoors fosters imagination and innovation, providing a tranquil environment for inspiration [5] - Social Bonding Opportunities: Nature serves as a setting for strengthening relationships and building meaningful connections [5] Corporate Social Responsibility - Proceeds from Guest's book go towards feeding hungry children, with each purchase providing 40 meals [7]

Core Insights - USANA has released its fifth annual sustainability report, showcasing its commitment to sustainability in the areas of people, planet, and products since 2020 [2][3] Group 1: Sustainability Commitment - The company emphasizes that sustainability is a fundamental part of its mission to create the healthiest family on earth [2] - USANA's sustainability achievements include significant advancements in employee engagement, leadership diversity, and energy use [6] Group 2: Stakeholder Assessment - In 2020, USANA initiated a formal stakeholder assessment to evaluate its sustainability performance and identify key issues [3] Group 3: Achievements and Initiatives - Key achievements include 84% engagement in global employee surveys, 51% of leadership positions held by women, and 58% of energy use at its Salt Lake campus sourced from solar and renewable energy [6] - The company diverted 57% of operational waste from landfills and saved the equivalent of 300,319 supplement bottles worth of plastic in 2024 [6] - USANA provided 12.3 million meals through the USANA Foundation and employees completed over 2,690 volunteer hours [6] - The company launched seven new products and invested $11.6 million in research and development [6]

Core Insights - Kevin Guest, Executive Chairman of USANA Health Sciences, emphasizes the importance of living a life of purpose, harmony, and fulfillment, sharing strategies for success on Executive Coaching Day [1][2] Company Overview - USANA Health Sciences is a global leader in health and wellness products, founded in 1992, focusing on social wellness and clear communication to build trust with customers and distributors in 25 countries [6][7] Key Principles for Success - **Growth Mindset**: The belief that abilities and potential can be developed through effort and learning, encouraging individuals to push through fear of failure [6] - **Power of Collaboration**: Emphasizes the importance of working together towards shared goals, highlighting that collaboration amplifies individual strengths [6] - **Vision**: The necessity of having a clear vision to guide decisions and priorities, as exemplified by USANA's founder, Dr. Myron Wentz [6] - **Resilience**: The ability to adapt and recover from setbacks, encouraging individuals to reframe situations and launch into comebacks [6]

Core Insights - USANA Health Sciences, Inc. announced that its Celavive Postbiotic Rescue Serum won a Good Housekeeping 2025 Beauty Award, highlighting the product's recognition in the beauty industry [1][2] Group 1: Product Recognition - The Celavive Postbiotic Rescue Serum is recognized for its ability to visibly reset and balance stressed-out, blemish-prone skin, featuring a lightweight formula with microbiome-friendly postbiotics and soothing botanicals [2] - Brent Neidig, USANA's chief commercial officer, expressed excitement over the award, attributing it to the hard work of the product and R&D teams [2] Group 2: Company Overview - USANA has been providing quality nutritional and lifestyle products for over 30 years, including award-winning supplements and innovative skincare lines [3] - The company emphasizes trust and quality in its offerings, encouraging consumers to explore its products through its website [3]

Company Overview - USANA develops and manufactures nutritional and personal care products, sold through direct sales and direct-to-consumer channels, with annual revenue of $876 million[12] - The company's product mix includes Nutritionals (87%), Skincare (6%), and Foods (6%)[12] - Geographically, Greater China accounts for 51% of sales, followed by Southeast Asia Pacific (17%), Americas & Europe (23%), and North Asia (9%)[12] Financial Performance and Guidance - Q1 2025 net sales were $249539 thousand, compared to $227800 thousand in Q1 2024, a 95% increase[123] - The company's fiscal year 2025 guidance projects net sales between $920 million and $1 billion[121] - Adjusted EBITDA for fiscal year 2025 is projected to be between $107 million and $123 million[121] - The company maintains a strong net cash position, with cash and cash equivalents of $179613 thousand as of March 29, 2025[107, 126] Growth Strategy and Acquisitions - A key strategy involves a 5-pronged approach to profitable growth, including new market expansion and M&A[21, 22] - The acquisition of Hiya Health Products is a strategic fit, expanding USANA's business in the United States and providing channel expansion into the direct-to-consumer wellness market[75, 79] - Hiya's subscription model offers predictable revenue, strong customer relationships, and cost efficiencies[96] Direct Selling Model and Active Customers - The direct selling model is a key driver of operating leverage, with relatively low incremental cost to add a new active customer[32] - As of March 29, 2025, the company had 184000 active Associates, compared to 197000 as of March 30, 2024[132] - Greater China has 189000 active Preferred Customers, representing 687% of the total[132]

Financial Data and Key Metrics Changes - Consolidated net sales grew 12% year-over-year in constant currency, including the first full quarter of contribution from Hiya [7][8] - Active customers in the direct selling business grew modestly on a sequential basis for the second consecutive quarter [8] Business Line Data and Key Metrics Changes - The direct selling business saw sequential first quarter net sales and active customers in Mainland China grow 6% and 4%, respectively [8] - Hiya business continues to deliver robust results with strong growth in net sales and active monthly subscribers [12][13] Market Data and Key Metrics Changes - Consumer sentiment in key markets remains cautious, but there are pockets of strength observed [8] - Attendance at the China National Sales Meeting in Nanjing was strong, indicating positive engagement [10] Company Strategy and Development Direction - The company continues to execute an Associate first strategy, prioritizing associate engagement through leadership events [9] - Plans for new product launches are in place, with a focus on children's health and wellness [14][28] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding potential trade policies and tariffs but has not reflected this in financial guidance [15] - The supply chain team has proactively built inventory to mitigate tariff exposure [15][39] Other Important Information - The company is exploring alternative sourcing relationships to address potential tariff impacts [15] - New product introductions are expected to accelerate in the second half of the year [49][50] Q&A Session Summary Question: Plans for additional incentives in China and South Korea - Management confirmed that promotional incentives are planned throughout the year to drive value for distributors and customers [22][23] Question: Update on Hiya's new product launches - New product launches are planned systematically throughout the year, with a significant launch expected in May [26][27] Question: Progress in India - India remains a promising market with high expectations, although growth is currently slow [35][36] Question: Impact of tariffs and inventory levels - The company has built up inventory for nutritional products, which is expected to mitigate tariff impacts [39][40] Question: New product reception in China - New products launched in China, including a chewable calcium product for children, received positive feedback [47][48] Question: Opportunities from the elimination of artificial ingredients - Management believes the company is well-positioned to capitalize on the trend towards more natural products [52][53]

Financial Data and Key Metrics Changes - Consolidated net sales grew 12% year over year in constant currency, including the first full quarter of contribution from Hyatt [6][9] - Active customers in direct selling increased significantly, with Mainland China seeing a sequential growth of 64% in both net sales and active customers [6][9] Business Line Data and Key Metrics Changes - The direct selling business remains on track to meet sales guidance, with successful product launches and promotions contributing to growth [8][9] - The newly acquired Hyatt business continues to deliver robust results, with strong growth in net sales and active monthly subscribers [9][10] Market Data and Key Metrics Changes - Strong attendance at the China National Sales Meeting in Nanjing, with 13,000 attendees, indicating positive momentum in the Chinese market [7][21] - The company is optimistic about the Indian market, which is still in a slow roll but has high expectations for future growth [29] Company Strategy and Development Direction - The company is focused on an "associate first" strategy, prioritizing associate engagement and holding leadership events to drive business [6][8] - Plans for new product launches are in place, with a focus on children's health and wellness, and the company is exploring additional channels for product distribution [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential trade policies and tariffs, noting that they have proactively built inventory to mitigate risks [11][13] - The company is confident in the continued growth of its business and is focused on maintaining operational synergies with Hyatt while not overwhelming their team [26][27] Other Important Information - The company has introduced new products in China, including a chewable calcium product for children, which received positive feedback [39][40] - The management team is actively working on multiple sourcing strategies to lessen the impact of tariffs and ensure supply chain stability [34][35] Q&A Session Summary Question: Plans for additional incentives in China and South Korea - Management confirmed that they are always evaluating promotional incentives and have plans for additional promotions throughout the year [20][21] Question: Timing and specifics of new product launches - New product launches are planned systematically throughout the year, with significant launches expected in May and during the international convention in August [22][40] Question: Update on synergy opportunities with Hyatt - Management is taking a measured approach to synergies, focusing on operational improvements without distracting Hyatt from its strategic goals [26][27] Question: Progress in the Indian market - The Indian market is still seen as promising, with ongoing efforts to increase growth momentum [29] Question: Impact of tariffs and inventory levels - The company has built up inventory for raw materials, particularly for nutritional products, to prepare for potential tariff impacts [32][33]

Group 1: Earnings Performance - USANA Health Sciences reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, but down from $0.86 per share a year ago, representing an earnings surprise of 4.29% [1] - The company posted revenues of $249.54 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.67%, compared to $227.8 million in the same quarter last year [2] - Over the last four quarters, USANA Health has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - USANA Health shares have declined approximately 33.6% since the beginning of the year, while the S&P 500 has decreased by 12.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $220.37 million, and for the current fiscal year, it is $2.59 on revenues of $941.62 million [7] - The estimate revisions trend for USANA Health is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Medical - Drugs industry, to which USANA Health belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Performance - Net sales for Q1 2025 reached $250 million, a 10% increase year-over-year, with a 12% growth in constant currency[4] - Net earnings decreased to $9.4 million, down 43% from $16.5 million in Q1 2024[4] - Diluted EPS fell to $0.49, a 43% decline compared to $0.86 in the previous year[4] - Adjusted diluted EPS was $0.73, down 15% from $0.86 year-over-year[4] - Net sales for the quarter ended March 29, 2025, were $249.539 million, a 9.5% increase from $227.800 million in the same quarter of 2024[30] - Gross profit for the quarter was $197.094 million, representing a gross margin of 79.0% compared to 81.1% in the prior year[30][40] - Earnings from operations were $15.671 million, down 36.5% from $24.673 million in the prior year[30] - Total operating expenses increased to $181.423 million, up from $160.058 million in the same quarter of 2024, an increase of 13.4%[30] Customer Metrics - Active Customers in direct selling decreased to 459,000 from 494,000[4] - Active Direct Selling Associates decreased to 184,000 as of March 29, 2025, down from 197,000 a year earlier, a decline of 6.6%[35] - Active Preferred Customers decreased to 275,000 as of March 29, 2025, down from 297,000 in the prior year, a decline of 7.4%[37] - Hiya reported net sales of $37 million and 224,000 Active Monthly Subscribers[10] Outlook and Projections - The company reiterated its fiscal year 2025 outlook, projecting consolidated net sales between $920 million and $1.0 billion[13] - Expected net earnings for fiscal year 2025 are between $29 million and $41 million[13] - The fiscal year 2025 outlook includes a 53-week year, providing an additional week of sales compared to fiscal 2024[14] Acquisition and Contributions - The acquisition of Hiya Health Products contributed $37.089 million in sales for the quarter, representing 14.9% of total sales[34] - USANA maintains a 78.8% controlling ownership stake in Hiya Health Products, focusing on children's health and wellness[28] Regional Performance - The company reported a 6.3% decline in sales from the Asia Pacific region, with total sales of $173.407 million compared to $185.101 million in the previous year[34] Cash Flow - The company generated $15 million in operating cash flow and ended the quarter with $180 million in cash and cash equivalents[11]