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SALT LAKE CITY - USANA Health Sciences, Inc. (NYSE:USNA) shares surged 14% in after-hours trading Tuesday after the nutritional supplement company reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong performance in both its direct selling business and its Hiya direct-to-consumer segment.
The company reported adjusted earnings per share of $0.74 for the second quarter, handily beating the analyst consensus of $0.54. Revenue came in at $236 million, surpassing the analyst estimate of $225.2 million and representing an 11% increase YoY. The strong results were bolstered by the company’s Hiya direct-to-consumer business, which contributed $34 million in sales during the quarter.
"USANA delivered positive second quarter results, highlighted by 11% year-over-year consolidated net sales growth," said Jim Brown, President and Chief Executive Officer. "Our business performed in line with expectations, and we are maintaining our fiscal 2025 outlook."
Despite the revenue growth, the company’s direct selling business faced some challenges, with Active Customers declining to 418,000 from 468,000 in the same period last year. However, Hiya’s performance remained strong with 200,400 active monthly subscribers.
The company maintained its full-year 2025 guidance, projecting revenue between $920 million and $1 billion and adjusted earnings per share between $2.35 and $3.00, compared to analyst consensus of $2.61. USANA expects its direct selling business to generate sales of $775 million to $840 million, while Hiya is forecast to contribute $145 million to $160 million, representing YoY growth of 29% to 42%.
During the quarter, USANA repurchased 528,000 shares for $15 million and ended the period with $151 million in cash and zero debt. The company also repaid the $23 million draw on its credit facility that was used for the Hiya transaction.
"We continue to execute our comprehensive commercial strategy for our direct sales business," added Brown, noting that the company plans to make important announcements at its global convention in August, including simplification of its direct sales model and enhanced sales incentives.
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