USANA Health Sciences Reports Slight Increase in Q1 2026 Net Sales to $250.2 Million

USANA Health Sciences, Inc. reported a slight increase in net sales for the first quarter of 2026, reaching $250.2 million, up 0.3% from $249.5 million in the same period last year. The growth was primarily driven by a significant increase in sales from the Rise segment, which saw a 740.7% rise to $13.7 million, attributed to the successful launch of its Protein Pop product. However, this was partially offset by declines in the Core Nutritional and Hiya segments, which experienced decreases of $6.4 million and $4.9 million, respectively. The company also noted that favorable currency exchange rates contributed an estimated $8.1 million to net sales.

In terms of profitability, USANA's net earnings attributable to the company fell to $7.5 million, a decrease of 20.1% compared to $9.4 million in the prior-year quarter. This decline was largely due to a lower operating margin and a higher effective tax rate, which increased to 55.0% from 44.5% in the previous year. The diluted earnings per share decreased to $0.41 from $0.49, reflecting the impact of these financial changes.

Operationally, USANA's active customer base in the Core Nutritional segment decreased by 12.0% year-over-year, totaling approximately 404,000 active customers as of April 4, 2026. The decline was particularly pronounced in the Asia Pacific region, where active customers fell by 12.8%. In contrast, Hiya reported approximately 186,000 active monthly subscribers, down from 224,000 in the previous year, indicating challenges in customer acquisition. The company continues to focus on increasing customer engagement and retention across its segments.

Strategically, USANA has been evolving its business model to include an omni-channel approach, integrating its Core Nutritional business with its acquisitions of Hiya and Rise. This shift aims to diversify revenue streams and enhance market presence. The company has also reorganized its reportable segments to better reflect its operational structure, now categorizing its business into Core Nutritional, Hiya, and Rise segments. This reorganization is expected to improve resource allocation and performance evaluation.

Looking ahead, USANA remains cautious about the economic environment and its impact on customer spending. The company is focused on maintaining liquidity and exploring potential acquisition opportunities while navigating challenges such as fluctuating currency exchange rates and market conditions. Management has expressed confidence in its ability to meet operational and capital needs through cash flow from operations and its existing line of credit, although they acknowledge the potential need for additional financing in the future.