What Happened?
Shares of health and wellness products company USANA Health Sciences (NYSE:USNA) fell 3.1% in the afternoon session after the company reported weak third-quarter 2025 financial results and significantly lowered its full-year outlook.
While the health and wellness products company's revenue grew 6.7% year-over-year to $213.7 million, meeting Wall Street's expectations, profitability was a major concern. Adjusted earnings per share came in at a loss of $0.15, a significant reversal from a profit of $0.56 in the same quarter last year. Compounding the negative results, USANA slashed its full-year guidance. The company dropped its revenue forecast by 4.2% to $920 million at the midpoint and lowered its adjusted EPS guidance by over 35% to a midpoint of $1.73, signaling to investors that its challenges were expected to persist.
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What Is The Market Telling Us
USANA’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 20.7% on the news that the company announced preliminary third-quarter results that fell below expectations, signaling a sharp decline in profitability. Although net sales were expected to increase to approximately $214 million from $200 million in the same period of the previous year, earnings from operations dropped significantly to $1.2 million from $15.6 million. The company pointed to two main issues for the poor performance. First, the rollout of a new compensation plan for its Brand Partners led to a more pronounced slowdown in sales and productivity than anticipated. Second, its direct-to-consumer business, Hiya, had weaker sales due to lower-than-expected customer acquisition. Consequently, USANA anticipated a net loss of $6.5 million for the quarter, a stark reversal from the $10.6 million in net earnings reported a year earlier.
USANA is down 44.1% since the beginning of the year, and at $20.32 per share, it is trading 50.8% below its 52-week high of $41.29 from November 2024. Investors who bought $1,000 worth of USANA’s shares 5 years ago would now be looking at an investment worth $236.72.
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