USANA announced preliminary fiscal year 2022 results and initial guidance for fiscal year 2023.
The Company currently anticipates 2022 net sales to be approximately $995 million. USANA’s most recently issued 2022 guidance anticipated net sales between $955 and $975 million. Total Active Customers were approximately 490,000 at year-end.
Net sales for Q4 and full-year benefitted from incremental sales in mainland China during the last two weeks of fiscal 2022, the company said. This was due to increased demand for certain products following the unanticipated shift in COVID policy in this market. While these incremental sales contributed to the Company’s better-than-anticipated operating results for the quarter and year, USANA said it does not have visibility into whether or how long this increased demand will continue into the year 2023.
“Active Customer counts stabilized during the fourth quarter as key markets in our Asia Pacific region experienced initial signs of easing COVID lockdowns and restrictions,” said Kevin Guest, CEO and Chairman of the Board. “As a result of the improving operating environment in most of our markets, and the continued efforts of our team, we anticipate that net sales and diluted EPS for the year will be above the high end of our previous guidance range.
USANA’s initial net sales outlook for fiscal year 2023 is $850-$950 million.
As the Company states, net sales guidance for 2023 reflects: 1) Growing Active Customer counts throughout the year from a lower starting point as compared to the beginning of fiscal year 2022; 2) Ongoing uncertainty in the operating environment in mainland China and other Asia Pacific markets; 3) An estimated $30 million unfavorable currency exchange rate impact on net sales; 4) More normalized volume and cadence of planned promotional activity throughout the year as compared to fiscal year 2022; and 5) Continued progress in the digital marketing efforts to elevate brand awareness and better communicate with a younger demographic.
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