Usana Plunges on Weaker-Than-Expected Second-Quarter Sales
Shares of dietary supplement and skin products marketer Usana Health Sciences (USNA) plunged on Wednesday, dropping more than 18% at the opening bell after the company announced preliminary fiscal second-quarter numbers significantly below analysts’ forecasts, and lowered its guidance for the remainder of 2019.
The Salt Lake City-based company said it is now expecting second-quarter sales in the range of $253 million and $256 million, vs. $301 million in the prior-year period, and earnings per share of between 91 cents and 95 cents, compared with $1.36 a share in the year-earlier period — thanks mostly to a significant drop in sales in China.
Analysts polled by FactSet were expecting second-quarter earnings of $1.31 a share on sales of $307.4 million.
— USANA, Inc. (@USANAinc) July 2, 2019
“We continued to see a very challenging market in China throughout the second quarter, and these market conditions had a more significant impact on our results than we anticipated in late April,” CEO Kevin Guest said in a statement, noting that promotions “did not generate the results we anticipated during the second quarter, as consumer sentiment remained low.”
Shares of Usana plunged more than 18% in early trading Wednesday to $62.27. They ended the trading day Tuesday at $76.72.