USANA Health Sciences, Inc. released preliminary third-quarter results, forecasting net sales of $265 to $275 million in 2021, down from $299 million in the prior-year period. Earnings per share are predicted to fall from $1.28 to $1.33 per share for the period, down from $1.44 in the third quarter of 2020.
“Our third-quarter sales results were less than we expected, owing to significant disruptions and lockdowns in numerous of our markets as the COVID-19 pandemic spreads,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “These outages have impacted our customers and salesforce, as well as our ability to function and supply items in some circumstances. Certain planned corporate events and activities have had to be postponed or canceled in some markets. We have postponed the introduction of additional product offerings in other markets until 2022. Following the short-term sales incentive program launched in the second quarter, we were unable to produce the level of sales activity we expected due to these collective issues. Finally, lower currency exchange rates impacted our third-quarter performance and contributed to our revised sales forecast for the remainder of the year. We are modifying our outlook for 2021 as a result of these third-quarter changes. Despite these obstacles, we are on course to achieve another record sales year, with sales increasing by 4% to 6% over the previous year.”
Share Repurchase Program Update
The Board of Directors of USANA has additionally expanded the company’s share repurchase authorization to $150 million, which includes the $14 million leftovers from the September 16, 2021 share repurchase authorization.
Repurchases may be made at any time, in the open market, through block trades, or otherwise, subject to the Securities and Exchange Commission’s applicable laws. Market conditions, cash balances, general business prospects, and other considerations will determine the number of shares to be purchased and when they will be purchased.
USANA creates and manufactures high-quality nutritional supplements, healthy foods, and personal care products for Associates and Preferred Customers in the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France, Belgium, Colombia, and other countries.