USANA Health Sciences Reports 8.3% Net Sales Increase to $925.3 Million, Net Earnings Down 74.4%

USANA Health Sciences, Inc. reported a net sales increase of 8.3% for the fiscal year ending January 3, 2026, reaching $925.3 million, compared to $854.5 million in the previous year. This growth was primarily driven by the inclusion of Hiya Health Products, which contributed $130 million in sales following its acquisition in December 2024. However, the core nutritional segment experienced a decline in sales, attributed to a 14.8% decrease in active customers, which fell to approximately 387,000. The company's net earnings attributable to USANA decreased significantly by 74.4% to $10.8 million, largely due to a lower operating margin and a substantial increase in the effective tax rate, which rose to 72.4%.

The company has made strategic moves to enhance its market position, including the acquisition of Hiya, which allows USANA to diversify its offerings and expand into the direct-to-consumer channel. The Hiya acquisition is expected to provide a steady income stream through its subscription model, which has already attracted approximately 181,700 active monthly subscribers. Additionally, USANA has been focusing on enhancing its Brand Partner Compensation Plan to improve retention and attract new partners, although this has resulted in increased expenses.

Operationally, USANA's core nutritional segment saw a decline in customer counts across key markets, particularly in Greater China, which remains the largest market, accounting for 41.3% of net sales. The company reported a significant drop in active customers in this region, reflecting ongoing challenges in the economic environment. The Americas and Europe also faced declines, with active customers decreasing by 14.4%. Despite these challenges, the average spend per customer increased, indicating a potential shift in purchasing behavior among existing customers.

Looking ahead, USANA aims to continue its focus on product innovation and geographic expansion, particularly in the direct-to-consumer space with Hiya and Rise, another acquisition from 2022. The company plans to enhance its marketing strategies and strengthen its brand messaging to improve customer engagement. However, it remains cautious about the potential impacts of regulatory changes, economic conditions, and competition in the health and wellness market, which could affect its operational performance and financial results in the future.