FALSE000089626400008962642024-10-222024-10-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
October 22, 2024
USANA HEALTH SCIENCES, INC.
(Exact name of registrant as specified in its charter)
Utah
(State or other jurisdiction of incorporation)
001-3502487-0500306
(Commission File No.)(IRS Employer
Identification No.)
3838 West Parkway Boulevard
Salt Lake City, Utah 84120
(Address of principal executive offices, Zip Code)
Registrant's telephone number, including area code: (801) 954-7100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareUSNANew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02    Results of Operations and Financial Condition.
On October 22, 2024, USANA Health Sciences, Inc. (the “Company” or “USANA”) issued a press release announcing its financial results for the third quarter ended September 28, 2024. The release also announced that the Company will post a document titled “Management Commentary” on the Company’s website and that executives of the Company will hold a conference call with investors, to be broadcast over the World Wide Web and by telephone and provided access information, date and time for the conference call. The Company noted that the call will consist of brief remarks by the Company’s management team, before moving directly into questions and answers. A copy of the press release, and the Management Commentary, are furnished herewith as Exhibits 99.1 and 99.2 to this Current Report on Form 8-K and are incorporated herein by reference. These documents will be posted on the Company’s corporate website, www.usana.com.
The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.
Item 7.01    Regulation FD Disclosure
The information disclosed above under Item 2.02, as well as the exhibits attached under Item 9.01 below are incorporated herein by reference.
Item 9.01    Financial Statements and Exhibits.
(d)Exhibits


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
USANA HEALTH SCIENCES, INC.
By:/s/ G. Douglas Hekking
G. Douglas Hekking, Chief Financial Officer
Date: October 22, 2024


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USANA Health Sciences Reports Third Quarter 2024 Results

SALT LAKE CITY, October 22, 2024 (BUSINESS WIRE)—USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 28, 2024.

Key Financial & Operating Results
•Third quarter net sales were $200 million versus $213 million during Q3 2023.
•Third quarter diluted EPS was $0.56 as compared with $0.59 during Q3 2023.
•Company updates fiscal year 2024 net sales and diluted EPS outlook to approximately $850 million and $2.45, respectively (previously $850 million to $880 million and $2.40 to $2.55).

Q3 2024 Financial Performance
Consolidated Results
Net Sales
$200 million
•-6% vs. Q3 2023
•No meaningful YOY FX impact
•-6% sequentially
Diluted EPS
$0.56
•-5% vs. Q3 2023
•+4% sequentially
Active Customers
452,000
•-3% vs. Q3 2023
•-3% sequentially

“Third quarter operating results reflected continued top line headwinds across many of our key markets,” said Jim Brown, President and Chief Executive Officer. “Our sales force continued to face challenges in attracting new customers as consumer sentiment remained cautious, including in our largest market, mainland China. Despite these challenges, we remain confident in our direction and continue to make progress on the five key initiatives that underpin our long-term strategy. Our commercial team, which was reorganized earlier this year, has been executing on


these initiatives to enhance the overall value proposition of our business to our customers and we are beginning to see results in several of these areas.

“During the quarter, we continued to prioritize engagement with our sales leaders, highlighted by our Americas & Europe Convention in Las Vegas, Nevada during August. Training and development were key focus areas at this event, with an emphasis on actionable initiatives to help our sales leaders grow their businesses. Feedback has been positive and leaders are actively adopting these new initiatives.

“We have also prioritized our product innovation strategy with an emphasis on increasing the cadence with which we introduce new and upgraded premium products relevant to our customers’ needs. Illustrative of this effort, we launched two new products at our recent event in Las Vegas: a Celavive Resurfacing Serum and a Whey Protein Isolate.”

Q3 2024 Regional Results:
Asia Pacific Region
Net Sales
$160 million
•-6% vs. Q3 2023
•No meaningful YOY FX impact
•-6% sequentially
•80% of consolidated net sales
Active Customers
360,000
•-1% vs. Q3 2023
•-2% sequentially
Asia Pacific Sub-Regions
Greater China
Net Sales
$102 million
•-4% vs. Q3 2023
•-5% constant currency vs. Q3 2023
•-11% sequentially
Active Customers
243,000
•+6% vs. Q3 2023
•-3% sequentially
North Asia
Net Sales
$21 million
•-15% vs. Q3 2023
•-12% constant currency vs. Q3 2023
•+4% sequentially
Active Customers
41,000
•-16% vs. Q3 2023
•-2% sequentially
Southeast Asia Pacific


Net Sales
$37 million
•-5% vs. Q3 2023
•-6% constant currency vs. Q3 2023
•+5% sequentially
Active Customers
76,000
•-8% vs. Q3 2023
•-1% sequentially

Americas and Europe Region
Net Sales
$40 million
•-7% vs. Q3 2023
•-6% constant currency vs. Q3 2023
•-5% sequentially
•20% of consolidated net sales
Active Customers
92,000
•-10% vs. Q3 2023
•-7% sequentially

Balance Sheet and Share Repurchase Activity
The Company generated $30 million in operating cash flow during the third quarter and ended the quarter with $365 million in cash and cash equivalents while remaining debt-free. The Company did not repurchase any shares during the quarter. As of the end of the third quarter, the Company had approximately $62 million remaining under the current share repurchase authorization.

Fiscal Year 2024 Outlook
The Company is updating its net sales and earnings per share outlook for fiscal year 2024, as follows:
Fiscal Year 2024 Outlook
Target
Previous Range
Consolidated Net Sales$850 million$850 - $880 million
Diluted EPS$2.45$2.40 - $2.55

“Third quarter net sales were modestly below expectations as we continue to see downward pressure on customer acquisition and consumer spending in several key markets, resulting in lower customer counts and average spend per customer,” said Doug Hekking, Chief Financial Officer. “We are monitoring the recently-announced stimulus initiatives in China, but we do not expect them to meaningfully impact our near-term operating results. Accordingly, we have adjusted our fiscal 2024 guidance to reflect year-to-date operating performance as well as


promotional activity planned for the fourth quarter. Notwithstanding the macroeconomic challenges we have faced in 2024, our business fundamentals remain strong. We’ve generated $47 million of free cash flow year-to-date and our balance sheet remains pristine with $365 million of cash and no debt.”

Management Commentary Document and Conference Call
For further information on the USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, October 23, 2024 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, followed by a questions and answers session.

Non-GAAP Financial Measures
The Company prepares its financial statements using U.S. generally accepted accounting principles (“GAAP”). Constant currency net sales, earnings, EPS and other currency-related financial information (collectively, “Financial Results”) are non-GAAP financial measures that remove the impact of fluctuations in foreign-currency exchange rates (“FX”) and help facilitate period-to-period comparisons of the Company’s Financial Results that we believe provide investors an additional perspective on trends and underlying business results. Constant currency Financial Results are calculated by translating the current period's Financial Results at the same average exchange rates in effect during the applicable prior-year period and then comparing this amount to the prior-year period's Financial Results.

About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom,


Thailand, France, Belgium, Colombia, Indonesia, Germany, Spain, Romania, Italy, and India. More information on USANA can be found at www.usana.com.

Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including: global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Associates; risk that our Associate compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk associated with governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China and other key markets; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict in Israel; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with commencing operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; and the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this press release set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.








Investor contact: Andrew Masuda
Investor Relations
(801) 954-7201
investor.relations@usanainc.com

Media contact: (801) 954-7280
media@usanainc.com




USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Quarter Ended
September 28,
2024		September 30,
2023
Net sales$200,221 $213,365 
Cost of sales39,257 42,529 
Gross profit160,964 170,836 
Operating expenses:
Associate incentives84,068 89,926 
Selling, general and administrative61,295 63,303 
Total operating expenses145,363 153,229 
Earnings from operations15,601 17,607 
Other income (expense):
Interest income3,142 2,733 
Interest expense(49)(43)
Other, net(86)234 
Other income (expense), net3,007 2,924 
Earnings before income taxes18,608 20,531 
Income taxes8,001 9,184 
Net earnings$10,607 $11,347 
Earnings per common share
Basic$0.56 $0.59 
Diluted$0.56 $0.59 
Weighted average common shares outstanding
Basic19,07819,245
Diluted19,08319,372



USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

As of
September 28,
2024		As of
December 30,
2023
ASSETS
Current assets
Cash and cash equivalents$364,889 $330,420 
Inventories63,984 61,454 
Prepaid expenses and other current assets22,318 25,872 
Total current assets451,191 417,746 
Property and equipment, net98,033 99,814 
Goodwill17,196 17,102 
Intangible assets, net29,237 29,919 
Deferred tax assets16,823 13,284 
Other assets*
58,828 54,892 
Total assets$671,308 $632,757 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable$7,041 $10,070 
Line of credit - short term— 786 
Other current liabilities107,738 107,989 
Total current liabilities114,779 118,845 
Deferred tax liabilities4,727 4,552 
Other long-term liabilities18,715 12,158 
Stockholders' equity533,087 497,202 
Total liabilities and stockholders' equity$671,308 $632,757 


*Other assets include noncurrent inventories of $2,938 and $3,128 as of 28-Sep-24 and 30-Dec-23, respectively. Total inventories were $66,922 and $64,582 as of 28-Sep-24 and 30-Dec-23, respectively.


USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
SALES BY REGION
(in thousands)
(unaudited)



Quarter EndedChange from prior
year		Percent changeCurrency impact on
sales		% change
excluding currency
impact
September 28, 2024September 30, 2023
Asia Pacific
Greater China$102,261 51.1 %$106,609 50.0 %$(4,348)(4.1 %)$865 (4.9 %)
Southeast Asia Pacific37,267 18.6 %$39,151 18.3 %(1,884)(4.8 %)561 (6.2 %)
North Asia20,541 10.2 %$24,244 11.4 %(3,703)(15.3 %)(721)(12.3 %)
Asia Pacific Total160,069 79.9 %170,004 79.7 %(9,935)(5.8 %)705 (6.3 %)
Americas and Europe40,152 20.1 %43,361 20.3 %(3,209)(7.4 %)(727)(5.7 %)
$200,221 100.0 %$213,365 100.0 %$(13,144)(6.2 %)$(22)(6.2 %)



USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
ACTIVE ASSOCIATES AND ACTIVE PREFERRED CUSTOMERS BY REGION
(unaudited)


Active Associates by Region(1)
(unaudited)
As of
September 28, 2024		As of
September 30, 2023
Asia Pacific:
Greater China65,00034.6 %69,00034.0 %
Southeast Asia Pacific52,00027.6 %55,00027.1 %
North Asia28,00014.9 %33,00016.2 %
Asia Pacific Total145,00077.1 %157,00077.3 %
Americas and Europe43,00022.9 %46,00022.7 %
188,000100.0 %203,000100.0 %


Active Preferred Customers by Region(2)
(unaudited)
As of
September 28, 2024		As of
September 30, 2023
Asia Pacific:
Greater China178,00067.4 %161,00061.7 %
Southeast Asia Pacific24,0009.1 %28,00010.7 %
North Asia13,0004.9 %16,0006.1 %
Asia Pacific Total215,00081.4 %205,00078.5 %
Americas and Europe49,00018.6 %56,00021.5 %
264,000100.0 %261,000100.0 %

(1) Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased from us any time during the most recent three-month period, either for personal use or resale.

(2) Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period. China utilizes a Preferred Customer program that has been implemented specifically for that market.


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USANA Health Sciences, Inc.                         October 22, 2024
Q3 2024 Management Commentary

Key Financial & Operating Results
•Third quarter net sales were $200 million versus $213 million during Q3 2023.
•Third quarter diluted EPS was $0.56 as compared with $0.59 during Q3 2023.
•Company updates fiscal year 2024 net sales and diluted EPS outlook to approximately $850 million and $2.45, respectively (previously $850 million to $880 million and $2.40 to $2.55).

Overview

Sales performance in the third quarter was modestly below our expectations as the operating environment in many of our markets remained challenging. Consumer spending in many of our markets remained under pressure due to macroeconomic factors, which created difficulty for our Associates to build momentum attracting new customers, particularly in our largest market, mainland China.

Notwithstanding the challenging environment, we continued to execute upon our long-term strategic initiatives. Our commercial team, which was reorganized earlier this year, has been executing on these initiatives to enhance the overall value proposition of our business to our customers and we are beginning to see results in several of these areas.

We continued our engagement efforts with our sales leaders during the quarter, highlighted by our Americas & Europe Convention in Las Vegas, Nevada. Training, development and recognition were key focus areas at this event, with an emphasis on actionable initiatives to help our sales leaders grow their businesses. Additionally, we previewed improved digital tools aimed


at enhancing the overall selling and shopping experience. Feedback has been positive and leaders are actively adopting these new initiatives.

At our Americas & Europe convention, we launched two new products: Celavive Resurfacing Serum and Whey Protein Isolate. These product launches are illustrative of the early stages of our product innovation strategy and Associate-first approach, which includes increasing the cadence of new and upgraded high-quality, relevant, and premium products. In addition to benefits anticipated from product innovation, the new commercial team is also driving shorter timelines from formulation to commercialization as well as exploring enhanced selling strategies to support our Associate-first approach.

For the fourth quarter, we expect the operating environment in many of our markets to remain challenging. We plan to modestly increase promotional activity to help offset these market pressures and to drive sales momentum. Although we are monitoring the recently-announced stimulus initiatives in China, we do not expect them to have a meaningful positive impact on our fourth quarter operating results.

We remain focused on executing the five key initiatives that underpin our long-term strategy. These include (i) leveraging performance from our restructured commercial team, (ii) expanding product innovation and commercialization, (iii) increasing our efforts to engage our sales leaders with an Associate-first approach, (iv) growing our India market, and (v) evaluating more business development activities. These initiatives are a meaningful multi-year endeavor and are focused on making USANA’s overall value proposition more compelling, ultimately driving long-term performance and stakeholder value creation.

2

Q3 2024 Financial Performance
Consolidated Results
Net Sales
$200 million
•-6% vs. Q3 2023
•No meaningful YOY FX impact
•-6% sequentially
Diluted EPS
$0.56
•-5% vs. Q3 2023
•+4% sequentially
Active Customers
452,000
•-3% vs. Q3 2023
•-3% sequentially
Balance Sheet and Share Repurchase Activity
We generated $30 million in operating cash flow during the third quarter and ended the quarter with $365 million in cash and cash equivalents while remaining debt-free.

As of September 28, 2024, inventories were $67 million, or 4% higher compared to the year-end balance in fiscal 2023. The modest increase in inventory can be attributed to strategic buying of certain raw materials during the quarter. Our in-house sourcing and manufacturing capabilities provide us with better control of inventory levels and help to mitigate supply chain risks while providing a meaningful contribution to delivering the highest quality nutritional products.

We did not repurchase any shares during the quarter. As of September 28, 2024, we had approximately $62 million remaining under the current share repurchase authorization.

Quarterly Income Statement Discussion
Gross margin increased 30 basis points from the prior year to 80.4% of net sales. The increase is largely attributed to lower material costs, favorable change in market mix and price increases, partially offset by the negative impact of foreign currency exchange rates.

Associate Incentives decreased 10 basis points from the prior year to 42.0% of net sales. The decrease largely reflects lower incentive and promotional expenses in the current year quarter.

Selling, General and Administrative expenses increased 90 basis points from the prior year to 30.6% as a percentage of net sales. The relative increase is primarily due to a loss of leverage on
3

lower year-over-year net sales. On an absolute basis, SG&A expenses decreased $2.0 million year-over-year, which can be attributed primarily to lower event and advertising-related expenses.

The year-to-date effective tax rate increased to 43.0% from the 38.0% reported in the comparable period of 2023. The higher effective tax rate can be attributed primarily to: 1) China’s increased relative share of USANA’s sales portfolio, 2) a concentration of infrastructure costs at our corporate headquarters in the U.S., and 3) generally softer operating performance, including the impact of unfavorable exchange rates in our other markets around the world.

Q3 2024 Regional Results:
Asia Pacific Region
Net Sales
$160 million
•-6% vs. Q3 2023
•No meaningful YOY FX impact
•-6% sequentially
•80% of consolidated net sales
Active Customers
360,000
•-1% vs. Q3 2023
•-2% sequentially
Asia Pacific Sub-Regions
Greater China
Net Sales
$102 million
•-4% vs. Q3 2023
•-5% constant currency vs. Q3 2023
•-11% sequentially
Active Customers
243,000
•+6% vs. Q3 2023
•-3% sequentially
North Asia
Net Sales
$21 million
•-15% vs. Q3 2023
•-12% constant currency vs. Q3 2023
•+4% sequentially
Active Customers
41,000
•-16% vs. Q3 2023
•-2% sequentially
Southeast Asia Pacific
Net Sales
$37 million
•-5% vs. Q3 2023
•-6% constant currency vs. Q3 2023
•+5% sequentially
Active Customers
76,000
•-8% vs. Q3 2023
•-1% sequentially
4

Greater China: Net sales and local currency sales in mainland China decreased 4% and 5% year-over-year, respectively. Active Customers in this market increased 7% year-over-year against a favorable comparison. Sequentially, regional performance was impacted by our mainland China market, where net sales and Active Customers decreased 13% and 3%, respectively. The primary driver of year-over-year and sequential performance is largely attributable to weakening macroeconomic conditions, which is negatively impacting consumer discretionary income and contributed to lower average spend per customer during the quarter.
North Asia: Net sales and local currency sales in South Korea declined 15% and 13% year-over-year, respectively, and Active Customers declined 17%. On a sequential basis, net sales and local currency sales increased 4% and 3%, respectively, while Active Customers declined 2%. Year-over-year declines reflect, in great part, a challenging environment due to macroeconomic weakness. We did, however, report sequential sales growth in this region through continued investments in promotional activity designed to support and generate positive growth momentum.
Southeast Asia Pacific: Net sales and local currency sales in Malaysia decreased 3% and 6% year-over-year, respectively, while Active Customers declined 17% year-over-year. Sequentially, net sales in Malaysia increased 6% (flat in local currency) and Active Customers decreased 4%. Year-over-year results reflect lower relative promotional activity. In the Philippines, net sales and local currency sales declined 11% and 9% year-over-year, respectively, while Active Customers were 5% lower. Sequentially, net sales and local currency sales in the Philippines grew 4% and 3%, respectively, while Active Customers increased 6%. Year-over-year results reflect cautious consumer sentiment in this market while sequential results reflect relatively stable levels of sales and customer counts since the beginning of the year.
5

Americas and Europe Region
Net Sales
$40 million
•-7% vs. Q3 2023
•-6% constant currency vs. Q3 2023
•-5% sequentially
•20% of consolidated net sales
Active Customers
92,000
•-10% vs. Q3 2023
•-7% sequentially

Americas and Europe Region: Net sales and local currency sales in Canada decreased 6% and 4%, respectively, while Active Customers decreased 6%. Both net sales and Active Customers in the United States declined 9% year-over-year. Sequentially, net sales and local currency sales in Canada decreased 7% and 8%, respectively, while Active Customers declined 9%. In the United States, net sales declined 1% sequentially while Active Customers were 5% lower. Results in both markets reflect a challenging environment for attracting new customers as consumer discretionary spending remains pressured.

Fiscal Year 2024 Outlook
The Company is updating its net sales and earnings per share outlook for fiscal year 2024, as follows:
Fiscal Year 2024 Outlook
Target
Previous Range
Consolidated Net Sales$850 million$850 - $880 million
Diluted EPS$2.45$2.40 - $2.55

Our updated outlook for the year reflects:
•An unfavorable currency exchange rate impact on net sales of around $11 million (previously unfavorable impact of approximately $20 million).
•An operating margin of approximately 8.5% (previously 8.0% to 8.8)
•An annual effective tax rate of approximately 43.5% (previously 43% to 44%)
•An annualized diluted share count of 19.1 million (previously 19.2 million)

Despite the challenging macroeconomic environment, USANA is well positioned to benefit from the growing consumer focus on personal health and wellness. We will continue to invest in
6

organic strategic initiatives with an Associate-first mentality, expand and enhance our best-in-class products, and evaluate accretive business development opportunities. While it will take time to fully realize the rewards of these efforts, we are confident that the successful execution of these strategies will position USANA to return to sustainable long-term growth.


Jim Brown
President and CEO

Douglas Hekking
CFO

7


Safe Harbor
This Management Commentary contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including: global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Associates; risk that our Associate compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk associated with governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China and other key markets; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict in Israel; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with commencing operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; and the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general. The contents of this Management Commentary should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this Management Commentary set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.

8

Non-GAAP Financial Measures
The Company prepares its financial statements using U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”). Constant currency net sales, earnings, EPS and other currency-related financial information (collectively, “Financial Results”) are non-GAAP financial measures that remove the impact of fluctuations in foreign-currency exchange rates (“FX”) and help facilitate period-to-period comparisons of the Company’s Financial Results that we believe provide investors an additional perspective on trends and underlying business results. Constant currency Financial Results are calculated by translating the current period's Financial Results at the same average exchange rates in effect during the applicable prior-year period and then comparing this amount to the prior-year period's Financial Results.

Investor contact:Andrew Masuda
Investor Relations
(801) 954-7210

investor.relations@usanainc.com
Media contact:801-954-7280
media@usanainc.com

9
v3.24.3
Cover
Oct. 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 22, 2024
Entity Registrant Name USANA HEALTH SCIENCES, INC.
Entity Incorporation, State or Country Code UT
Entity File Number 001-35024
Entity Tax Identification Number 87-0500306
Entity Address, Address Line One 3838 West Parkway Boulevard
Entity Address, City or Town Salt Lake City
Entity Address, State or Province UT
Entity Address, Postal Zip Code 84120
City Area Code 801
Local Phone Number 954-7100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 par value per share
Trading Symbol USNA
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000896264
USANA Health Sciences (NYSE:USNA)
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USANA Health Sciences (NYSE:USNA)
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From Jan 2024 to Jan 2025 Click Here for more USANA Health Sciences Charts.