USANA Health Sciences Q4 Earnings Call Highlights

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Chief Financial Officer Doug Hekking said the company’s consolidated net sales outlook for fiscal 2026 implies growth of “about 4%” at the midpoint. Hekking attributed expected growth primarily to USANA’s venture companies, Rise Wellness and Hiya. He noted that fiscal 2026 will be a 52-week year, with one less week of operations than fiscal 2025.

Hekking also said the company intends to accelerate its technology roadmap to improve customer experience and drive longer-term efficiency, but added that this “incremental investment has not been factored into our fiscal 2026 outlook at this time.” Management said it will provide updates once the scope, timing, and capital requirements are finalized.

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In the Q&A, executives discussed how performance could move toward the higher end of guidance. Management said the revenue range is influenced by growth trajectories at Rise Wellness and Hiya and the timing of retail orders, with achieving the top-line viewed as a key driver for reaching the upper end of earnings performance. Chief Operating Officer Walter Noot said much of the inventory buildup reflects business already booked in retail channels.

Hekking said inventory increased $35 million, or 48%, to $107 million at the end of fiscal 2025. He said approximately 80% of the year-over-year increase was driven by initiatives supporting “significant growth opportunities” at Rise Wellness and Hiya.

• Rise Wellness: Hekking said inventory was built to support the launch and growth of Protein Pops, particularly at retailers such as Costco.

• Hiya: He said inventory increased due to channel expansion, including distribution into Target, international expansion into Canada and the United Kingdom, and building raw materials inventory as USANA prepares to manufacture Hiya products in-house.

Given the growth trajectories of both brands, Hekking said the company anticipates elevated inventory levels throughout fiscal 2026 and intends to support product demand alongside the expansion of distribution channels and geographies.

Hekking said USANA expects Rise Wellness to operate at approximately break-even in fiscal 2026 as it scales the business and works to strengthen its long-term revenue and profitability profile. In response to questions on margin and expenses, management said the mix of businesses will influence key line items, noting that Rise currently carries a “much thinner gross margin,” which may affect consolidated margin presentation.

USANA also guided to an effective tax rate range of 55% to 60% for fiscal 2026. Hekking said the elevated tax rate is largely driven by a geographic misalignment between where revenue is generated and where costs are incurred. He said this dynamic was particularly evident in the second half of fiscal 2025 and was “particularly felt with the recognition of certain one-time costs during the period.” He added that executing the growth strategy and targeted cost efficiencies are expected to contribute to a lower effective tax rate in future years.

Executives also said that broadening revenue sources through an omnichannel strategy could help reduce disproportionate reliance on certain geographies and potentially improve the effective tax rate over time, as profitability becomes more geographically diversified.

On seasonality, management said the core nutrition business is influenced by Lunar New Year activity, particularly in China and parts of the Asia-Pacific region. Chief Commercial Officer Brent Neidig said promotional cadence ahead of the holiday typically contributes to a stronger first quarter, with momentum often extending into the second quarter alongside conventions and events. He said the company typically sees a lull in the third quarter due to summer schedules and then increased activity in the fourth quarter as brand partners “prepare for the following year.”

Management also discussed cost realignment actions taken in the fourth quarter. Hekking said about 10% of the workforce was impacted and estimated net savings of roughly $10 million to “$10+ million,” noting that some savings are being repurposed to support strategic initiatives and stabilization efforts, primarily within SG&A.

Closing the call, Guest said the core business has faced year-over-year sales declines, but that the company is seeing “encouraging signs of stabilization.” He emphasized that Hiya and Rise Wellness broaden USANA’s market reach and said the company’s cash position and cash flow generation provide flexibility to invest and pursue its next phase of expansion.

USANA Health Sciences, Inc is a Utah‐based company that develops, manufactures and distributes nutritional supplements and personal care products through a network of independent distributors. Founded in 1992 by Dr. Myron Wentz, the company’s portfolio includes vitamins, minerals, dietary supplements, weight‐management products and skin‐care formulations. USANA’s products are formulated in its own laboratories to meet pharmaceutical‐grade standards, and the company has invested heavily in research and development and quality control to support its offerings.

Operating primarily through a direct selling model, USANA serves markets in North America, Asia Pacific, Europe and Latin America.

The article “USANA Health Sciences Q4 Earnings Call Highlights” was originally published by MarketBeat.