May 04, 2017
USANA and Nu Skin Report Q1 2017 Financial Results
USANA Health Sciences and Nu Skin Enterprises both announced financial results for the first quarter of 2017 this week.
At USANA, net sales increased to $255.3 million, up 6.2 percent, compared with $240.4 million in the prior-year period. Net sales growth was driven primarily by an 8.1 percent increase in the number of active Customers. Net earnings for the first quarter decreased by 4.2 percent to $21.4 million, compared with $22.3 million during the prior-year period.
“USANA generated solid top-line and customer growth during the quarter,” said CEO Kevin Guest. “Our earnings were impacted by additional expense related to our previously disclosed internal investigation during the quarter. Setting aside these expenses, our bottom-line results were essentially in-line with our expectations. We remain focused on implementing our 2017 growth strategies, including our initiatives designed to drive overall customer growth and our new product announcements later this year.”
Net sales in the Asia Pacific region increased by 10.6 percent to $195.1 million, despite a negative $5.7 million impact from the strengthening of the U.S. dollar. Within Asia Pacific, net sales increased 12.6 percent in Greater China, primarily driven by 18.2 percent active Customer growth in mainland China; increased 3.2 percent in Southeast Asia Pacific region; and increased 22.7 percent in North Asia. The total number of active Customers in the Asia Pacific region increased by 12.2 percent year-over-year.
Financial performance in the Americas and Europe region was below expectations due to a continued sales and customer decline in the U.S. and softer-than-anticipated sales and customer results in Canada. Net sales in the Americas and Europe region decreased by 5.9 percent to $60.2 million.
To see the full USANA report, click here.
At Nu Skin, revenue increased 6 percent compared to the first quarter of 2016, with the company reporting $499.1 million. “We are pleased to deliver strong first-quarter results, which demonstrates the progress we made executing on our strategic priorities to increase customer trial and acquisition,” said CEO Ritch Wood.
In Mainland China, revenue increased 26.4 percent, from $118,655 in the first quarter of 2016 to $150,004 in 2017; and South Asia/Pacific saw an increase of 9.8 percent, from $63,578 to $69,798.
South Korea, Japan and Hong Kong all experienced decreases in revenue: South Korea was down 4.2 percent, from $86,118 to $82,471; Japan, down 6 percent, from $65,091 to $61,156; and Hong Kong/Taiwan, down 10.3 percent, from $40,056 to $35,948.
The Americas saw a very slight decrease of 0.01 percent for the first quarter, from $65,748 to $65,658. Revenue in EMEA increased 4.5 percent, from $32,585 to $34,064.
Nu Skin saw an increase of 2.3 percent in customers for the first quarter of 2017, from 958,000 to 980,000; however, in that same period there was a 0.7 percent decrease in sales leaders, from 55,000 to 54,600.
“Our quarterly results reflect solid growth in Mainland China, South Asia/Pacific and EMEA,” said Wood. “Our expanding social selling efforts and the continued rollout of ageLOC Me and ageLOC Youth contributed to our strong revenue during the quarter, positioning us to deliver solid performance for 2017.”
To see the full Nu Skin report, click here.