Financial Data and Key Metrics Changes - For the full year of 2018, net sales grew by 13.6%, marking the 16th consecutive year of record sales [10] - The operating margin for the fourth quarter was above 16%, exceeding the target range of 14.5% to 15% [9] - The active customer base increased by 9% year-over-year [10] Business Line Data and Key Metrics Changes - Nearly all markets worldwide experienced local currency sales growth, with four markets growing by more than 20% and five additional markets growing by more than 10% [8] - The company launched a new Celavive skincare line and opened four new European markets during the year [11] Market Data and Key Metrics Changes - The company noted that the strengthening of the U.S. dollar impacted results, yet local currency sales growth was strong across most markets [8] - In China, the perception of USANA as an American brand is seen as a strength, despite local manufacturing [43] Company Strategy and Development Direction - In 2019, the company plans to enhance customer experience globally and introduce a new healthy living product category [12][13] - The strategy includes targeting different customer demographics within existing markets and offering trial initiatives and incentives [15][16] - The company is focusing on vertical integration by bringing some food products in-house to improve supply chain control [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2019, expecting another record year in revenue, earnings, and active customers [16] - There is an acknowledgment of changes in the direct sales environment and the need for a longer-term view on the impact of new initiatives [22][23] - The company is actively listening to customer feedback and conducting external research to guide product expansion [54] Other Important Information - The company plans to invest significantly in technology enhancements to improve customer shopping and sharing experiences [14] - Capital expenditures for 2019 are projected to be around $32 million, a significant increase from $11.5 million in 2018 [33] Q&A Session Summary Question: Follow-up on EBIT guidance and expected sales growth - Management indicated that investments in initiatives would be made throughout the year, with returns expected over time rather than immediately [20][22] Question: Timing of new healthy living product launches - A couple of products will be launched at the Asia Pacific convention in April, with a full launch planned for the third quarter [31] Question: Consumer perception of USANA in China - USANA is viewed as a strong American brand in China, which is beneficial despite local manufacturing [43] Question: Reorder rates for personal care products - Reorder rates are similar to other products, but the usage cycle is more sporadic than anticipated [45] Question: Strategy change regarding product offerings - The company is broadening its product strategy to include healthier alternatives, responding to customer demand for a wider range of products [51][54] Question: Focus on prebiotics and probiotics in new product lines - The company confirmed that the micro biome strategy, including prebiotics and probiotics, will be a major focus in product development [65] Question: Marketing and technology investments - Investments will focus on enhancing technology for customer engagement and supporting both agents and direct-to-consumer marketing efforts [71]