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Oct 01, 2022
USANA Q3 2022 Earnings Report
Reported a decrease in net sales and diluted EPS due to challenging operating environment in Asia Pacific and strengthening U.S. dollar.
Key Takeaways
USANA Health Sciences reported a decrease in net sales to $233 million compared to $274 million in the prior year quarter. Diluted EPS also decreased to $0.78 versus $1.36 in the third quarter of 2021. The company revised its fiscal year 2022 net sales and diluted EPS outlook to $955 million to $975 million and $3.15 to $3.40, respectively.
Third quarter net sales were $233 million, a 15% decrease compared to the prior-year quarter.
Third quarter diluted EPS totaled $0.78, a 43% decrease compared to the third quarter of 2021.
The company generated $29 million in operating cash flow and ended the quarter with $247 million in cash and cash equivalents, remaining debt-free.
Management is evaluating and executing several short-term initiatives to regain momentum, including new incentives and increased in-person communications.
Revenue by Geographic Location
Forward Guidance
The Company is revising its net sales and earnings per share outlook for fiscal year 2022 due to lower Active Customer base and continued expectations of COVID-related, inflationary and economic challenges.
Positive Outlook
- Committed to long-term strategic initiatives.
- Actively evaluating and implementing actions to minimize the impact of the macro-operating environment.
- Balance sheet remains debt-free.
- Expects to generate operating cash flow of approximately $80 million in fiscal 2022.
- New and modified incentives in various markets and regions to make our overall incentive offering more rewarding and attractive to our sales force.
Challenges Ahead
- Lower Active Customer base at the end of the third quarter.
- Continued expectations of COVID-related, inflationary and economic challenges in many markets.
- Margins will continue to be pressured in the short- to mid-term.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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