USANA Health Sciences(US:USNA)2024-10-22 20:12Financial Performance - Third quarter net sales were $200 million, a decrease of 6% compared to Q3 2023[2] - Diluted EPS for the third quarter was $0.56, down 5% from $0.59 in Q3 2023[2] - The company updated its fiscal year 2024 net sales outlook to approximately $850 million, down from a previous range of $850 million to $880 million[8] - The Asia Pacific region accounted for 80% of consolidated net sales, totaling $160 million, also down 6% year-over-year[4] - In Greater China, net sales were $102 million, a decrease of 4% compared to Q3 2023[4] Customer Metrics - Active customers decreased to 452,000, reflecting a 3% decline year-over-year[3] - As of September 28, 2024, USANA Health Sciences reported 188,000 active associates, a decrease from 203,000 as of September 30, 2023, representing a decline of approximately 7.4%[16] - In the Asia Pacific region, active associates totaled 145,000, accounting for 77.1% of the total, while the Americas and Europe contributed 43,000, or 22.9%[16] - The Greater China region had 65,000 active associates, which is 34.6% of the total, down from 69,000 (34.0%) in the previous year[16] - Active preferred customers reached 264,000 as of September 28, 2024, slightly up from 261,000 as of September 30, 2023, indicating a growth of approximately 1.5%[17] - The Asia Pacific region accounted for 215,000 active preferred customers, representing 81.4% of the total, while the Americas and Europe had 49,000, or 18.6%[17] - Greater China saw an increase in active preferred customers to 178,000, which is 67.4% of the total, compared to 161,000 (61.7%) in the previous year[17] - Southeast Asia Pacific's active preferred customers decreased to 24,000 (9.1%) from 28,000 (10.7%) year-over-year[17] - North Asia's active preferred customers also declined to 13,000 (4.9%) from 16,000 (6.1%) year-over-year[17] Cash Flow and Financial Health - The company generated $30 million in operating cash flow during the third quarter and ended with $365 million in cash, remaining debt-free[7] - Free cash flow year-to-date was $47 million, indicating strong business fundamentals despite macroeconomic challenges[9] - The company did not repurchase any shares during the quarter, with approximately $62 million remaining under the current share repurchase authorization[7] Product Development and Strategy - The company launched two new products: a Celavive Resurfacing Serum and a Whey Protein Isolate during the quarter[4] - The company continues to focus on expanding its market presence and enhancing its product offerings to drive future growth[18] - USANA Health Sciences is committed to maintaining its active customer base and improving engagement strategies to boost sales performance[18]