USANA Health Sciences Reports 10.8% Net Sales Increase Driven by Hiya Acquisition

USANA Health Sciences, Inc. reported a net sales increase of 10.8% for the second quarter of 2025, reaching $235.8 million compared to $212.9 million in the same period last year. The growth was primarily driven by the acquisition of Hiya Health Products, which contributed $33.9 million in sales. However, the direct selling segment experienced a decline, with net sales falling 5.1% to $201.9 million, attributed to a decrease in active customers and challenging market conditions. Net earnings attributable to USANA were $9.7 million, a slight decrease of 7.4% from $10.4 million in the prior-year quarter, influenced by amortization costs related to the Hiya acquisition and lower net interest income.

In terms of profitability, the gross profit margin decreased to 78.7% from 81.1% in the previous year, largely due to the lower margins associated with Hiya's direct-to-consumer model. The direct selling segment's gross margin improved slightly to 81.2%, benefiting from a favorable sales mix and modest price increases. Operating expenses rose significantly, with selling, general, and administrative expenses increasing by $17.6 million, reflecting the higher costs associated with Hiya's operations and marketing efforts.

USANA's active customer base in the direct selling segment decreased to approximately 418,000, down from 468,000 a year earlier, with notable declines in the Asia Pacific region, particularly in Greater China and Southeast Asia. The Americas and Europe also saw a 17.2% drop in active customers. In contrast, Hiya reported approximately 200,400 active monthly subscribers, indicating a strong customer retention strategy through its subscription model.

The company continues to focus on strategic growth through acquisitions and product innovation. The integration of Hiya is expected to enhance USANA's market presence in the direct-to-consumer channel, diversifying its revenue streams. Looking ahead, USANA anticipates that ongoing economic challenges may impact customer acquisition and retention, but it remains committed to improving operational efficiencies and expanding its product offerings.

As of June 28, 2025, USANA's cash and cash equivalents stood at $151.3 million, down from $181.8 million at the end of December 2024. The company reported cash flow from operating activities of $27.7 million for the first half of 2025, which was offset by significant cash outflows related to financing and investing activities, including share repurchases totaling $27.5 million. USANA's management believes that its current liquidity position, combined with cash flow from operations, will be sufficient to meet its operational and capital needs in the foreseeable future.