USANA Health Sciences Reports 5.3% Decline in Q2 2026 Net Sales

USANA Health Sciences, Inc. reported a decline in financial performance for the second quarter of 2026, with net sales totaling $223.3 million, a decrease of 5.3% compared to $235.8 million in the same period last year. The company's net loss attributable to USANA was $21.4 million, a significant drop from net earnings of $9.7 million in the prior-year quarter. This downturn was primarily driven by reduced sales in both the Core Nutritional and Hiya segments, which saw declines of $7.9 million and $5.7 million, respectively. The Rise segment, however, experienced a modest increase in sales of $1.0 million.

In terms of operational metrics, USANA's active customer base in the Core Nutritional segment decreased to approximately 384,000, down from 418,000 a year earlier, reflecting an 8.1% decline. The company noted that the decrease in active customers was a key factor contributing to the overall decline in sales. The Core Nutritional segment accounted for about 84% of consolidated net sales during the first half of 2026, with significant contributions from the Asia Pacific region, particularly Greater China, which generated $237.9 million in sales.

Strategically, USANA has been focusing on expanding its product offerings and market reach. The company operates through three reportable segments: Core Nutritional, Hiya, and Rise. The Hiya segment, which specializes in children's health products, has expanded its distribution into Canada and the United Kingdom. Additionally, USANA has integrated its operations with Rise Wellness, Inc., enhancing its product range and distribution channels. However, the company recorded a non-cash goodwill impairment charge of $29.1 million for the Hiya segment due to lower-than-expected performance and changes in near-term forecasts.

The company's financial position remains stable, with cash and cash equivalents increasing to $168.6 million as of July 4, 2026, up from $158.4 million at the beginning of the year. USANA's management expressed confidence in the long-term growth potential of its business, particularly through the Hiya segment, despite the current challenges. Looking ahead, the company aims to leverage its omni-channel platform to enhance customer engagement and drive sales growth, while also navigating the complexities of market conditions and regulatory environments.