USANA Health Sciences (USNA) Tops Q2 EPS by 24c, Revenues Beat; Raises FY20 EPS/Revenue Outlook

USANA Health Sciences (NYSE: USNA) reported Q2 EPS of $1.32, $0.24 better than the analyst estimate of $1.08. Revenue for the quarter came in at $259 million versus the consensus estimate of $256.33 million.

Key Financial & Operating Highlights

• Continued strong demand and successful promotions combined to generate $259.0 million in net sales and $1.32 in diluted EPS during the quarter
• Active customers increased 7.9% vs. the prior-year quarter
• Company continued to successfully execute a virtual sales and operating strategy to deliver results
• Company raises full-year 2020 Net Sales and EPS outlook

“Strong consumer demand for our high-quality, health products and successful promotions drove our second quarter performance,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “During the quarter, we generated nearly eight percent growth in active customers, due to double-digit customer growth in three-of-our-four regions, including the Americas and Europe region. We also continued to successfully execute a virtual sales and operating strategy to deliver our results. This strategy included USANA hosting its first all-virtual Asia Pacific Convention, as well as the facilitation of other technology-based tools that assisted our Associates in their sales efforts. Finally, we offered several promotions and incentives during the quarter that benefitted net sales and our overall results. The health, wellness and safety of our employees, Associates and customers around the world remain our top priorities and our operating plan will continue to reflect those priorities.”

Mr. Guest continued, “We are raising our full-year guidance to reflect a solid second quarter as well as our expectations for the back-half of the year. We recognize that we cannot anticipate all of the challenges that might arise as a result of the ongoing COVID-19 pandemic, but we believe that we are positioned to continue adapting to an evolving operating environment. Overall, we remain confident in the strength of USANA’s underlying business and the growth strategies we have in place for the remainder of 2020 and beyond.”

GUIDANCE:

USANA Health Sciences sees FY2020 EPS of $4.70-$5.25, versus the consensus of $4.88. USANA Health Sciences sees FY2020 revenue of $1.05-1.1 million, versus the consensus of $1.07 million.

Doug Hekking, Chief Financial Officer, said, “We offered several successful promotions and incentives during the quarter that contributed to net sales while generating solid customer growth. We are raising our guidance to reflect our expectations for the back half of the year and plan on an increased cadence of promotions and incentives, particularly in the third quarter. The expected overall impact from currency remains relatively unchanged from the update we provided following the first quarter. Finally, our revised diluted earnings per share outlook reflects savings realized from event and travel costs due to the COVID-19 environment, as well as our success in aligning spending with sales performance. Although we are managing our cost structure to align with sales and to ensure the Company’s financial flexibility, we plan to continue making investments to execute our long-term growth strategies and to generate momentum in each of our regions.”

For earnings history and earnings-related data on USANA Health Sciences (USNA) click here.

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