USANA Health Sciences(USNA) - 2025 Q1 - Quarterly Results

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]