USNA

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the personal care stocks, including USANA (NYSE:USNA) and its peers. While personal care products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products. The 9 personal care stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1.5% above. While some personal care stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results. Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products. USANA reported revenues of $223.3 million, down 5.3% year on year. This print fell short of analysts’ expectations by 5%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates. The market seems disappointed with the results as the stock is down 38.5% since reporting and currently trades at $14.02. Read our full report on USANA here, it’s free. Short for "eyes, lips, face", e.l.f. Beauty (NYSE:ELF) is a developer of high-quality beauty products at accessible price points. e.l.f. Beauty reported revenues of $479.4 million, up 35.5% year on year, outperforming analysts’ expectations by 11%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates. e.l.f. Beauty achieved the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 21% since reporting. It currently trades at $104.55. Is now the time to buy e.l.f. Beauty? Access our full analysis of the earnings results here, it’s free. Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ:NATR) manufactures and sells nutritional and personal care products. Nature's Sunshine reported revenues of $117 million, up 1.9% year on year, falling short of analysts’ expectations by 5.4%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. Nature's Sunshine delivered the weakest performance against analyst estimates and weakest full-year guidance update among its peers. As expected, the stock is down 30.1% since the results and currently trades at $14.21. Read our full analysis of Nature's Sunshine’s results here. With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals. Herbalife reported revenues of $1.33 billion, up 5.4% year on year. This print beat analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it also logged full-year EBITDA guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates. Herbalife had the weakest guidance update of the whole group. The stock is flat since reporting and currently trades at $12.56. Read our full, actionable report on Herbalife here, it’s free. With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide. Inter Parfums reported revenues of $341 million, up 2.1% year on year. This result surpassed analysts’ expectations by 0.6%. Aside from that, it was a slower quarter as it recorded a significant miss of analysts’ gross margin estimates and full-year revenue guidance missing analysts’ expectations. The stock is down 8.4% since reporting and currently trades at $117.76. Read our full, actionable report on Inter Parfums here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

USANA Health Sciences faced a challenging second quarter, with results missing Wall Street’s expectations and the market responding with a sharp decline. Management attributed underperformance to a non-cash goodwill impairment in its Hiya business and a packaging issue at Rise Wellness, both of which pressured operating margins. CEO Kevin Guest addressed these setbacks directly, acknowledging, “Hiya’s direct-to-consumer business has experienced a tougher and more expensive digital marketing environment, and that’s had a clear impact on subscriber growth this year.” The company’s core nutritional segment, however, showed signs of stability, with strength in Mainland China offsetting declines elsewhere. Is now the time to buy USNA? Find out in our full research report (it’s free). Revenue: $223.3 million vs analyst estimates of $235 million (5.3% year-on-year decline, 5% miss) Adjusted EPS: -$0.07 vs analyst estimates of $0.43 (significant miss) Adjusted EBITDA: $27.85 million vs analyst estimates of $23.61 million (12.5% margin, 18% beat) The company reconfirmed its revenue guidance for the full year of $962.5 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.12 at the midpoint EBITDA guidance for the full year is $105 million at the midpoint, in line with analyst expectations Operating Margin: 4.1%, down from 7.1% in the same quarter last year Market Capitalization: $264.8 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Anthony Lebiedzinski (Sidoti & Company) asked about the sustainability of China’s recent sales uptick. Chief Commercial Officer Brent Neidig attributed ongoing progress to “resiliency of our brand partners” and new product launches, expressing confidence that recent gains are likely to continue. Lebiedzinski (Sidoti & Company) questioned the causes of North Asia’s revenue decline. Neidig cited leadership transition in Korea and soft demand but said new management and upcoming product launches could reverse the trend. Lebiedzinski (Sidoti & Company) probed Hiya’s direct subscription performance. COO Walter Noot acknowledged digital marketing headwinds but sees promise in emerging channels like TikTok and retail, calling the business “somewhat flattened out” but poised for future growth. Lebiedzinski (Sidoti & Company) inquired about the financial impact of Rise Wellness’s packaging issue. CFO Doug Hekking explained that the disruption led to lower-than-expected sales and margin pressure but maintained that long-term prospects remain positive. Ivan Feinseth (Tigress Financial Partners) asked about USANA’s evolution toward omni-channel distribution and leveraging its product development platform for future acquisitions. CEO Kevin Guest and Chief Scientific Officer Dr. Catherine Armstrong emphasized the company’s focus on relevant communications, product innovation, and utilizing R&D strengths across acquired brands. In upcoming quarters, the StockStory team will monitor (1) Hiya’s ability to rebound through channel diversification and retail expansion, (2) the pace of recovery in North Asia as new leadership and products are introduced, and (3) continued momentum in Mainland China following recent gains. Execution on product innovation and omni-channel technology investments will also be critical for assessing USANA’s progress toward its long-term strategic objectives. USANA currently trades at $14.90, down from $22.78 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 11:00 a.m. ET Director of Investor Relations - Andrew Masuda Chairman and Chief Executive Officer - Kevin G. Guest Chief Financial Officer - G. Douglas Hekking Chief Commercial Officer - Brent L. Neidig Chief Operating Officer - Walter Noot Chief Scientific Officer - Dr. Kathryn Armstrong Operator: And welcome to the USANA Health Sciences Second Quarter 26 Earnings. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. A reminder, this conference is being recorded. I would now like to turn the conference over to your host, Andrew Masuda, Director of Investor Relations. Please go ahead. Andrew Masuda: Thank you, and good morning, everyone. Appreciate you joining us to review our second quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ materially from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies, and outlook for fiscal year 26, the uncertainty related to the economic and operating environment around the world and our operations and financial results. We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. I am joined by our Chairman and Chief Executive Officer, Kevin G. Guest, our Chief Financial Officer, G. Douglas Hekking, our Chief Commercial Officer, Brent L. Neidig, our Chief Operating Officer, Walter Noot, our Chief Scientific Officer, Dr. Kathryn Armstrong as well as other executives. Yesterday, after the market closed, we announced our second quarter results posted our management commentary document on the company's website. We will now hear brief remarks from Kevin and Doug before opening the call for questions. Kevin G. Guest: Thank you, Andrew, and good morning, everyone. I want to use my time this morning to step back from the quarter and talk about where USANA is headed. Because I remain more convinced than ever that the path we are on is the right 1. We are building something different, evolving the company. We are building a diversified omnichannel health and wellness company anchored by science and built on deep lasting consumer loyalty. Video: With our products, reaching consumers wherever they choose to shop. Kevin G. Guest: This transformation is well underway and the progress we are seeing across our portfolio this year reinforces my confidence in our strategic direction. Our Core Nutritional business continues to demonstrate stability and momentum. Mainland China, our largest and most established market is showing signs of renewed strength and that matters because it reflects the deep trust our brand partners and customers place on this brand. We are backing that trust with continued innovation including the recent launch of Glow, our first skin health supplement which extends our science leadership beyond topical skincare into cellular level formulations. Looking ahead, I am pleased to note that USANA will host our live 2026 America's Convention on August 12 through the 15th in San Diego, California This event brings together our brand partners from across The United States, Canada and Mexico for business training, new product launches, product education and recognition of our top performers. Reinforcing the engagement and momentum that we continue to drive from our core nutritional business. That same momentum is what we are working to build across the business. Evolving our brand partner compensation plan accelerating our product innovation and modernizing technology that underpins how our brand partners and our customers experience and interact with our brand. I am genuinely excited about the compounding effect these initiatives will have as they mature. HYA continues to open doors for us in ways that would have been hard to imagine a few years ago, The brand's presence at Target remains strong Our early footprint in Canada and The UK is trending in the right direction, and the HYA team is leaning into the traction we are seeing on Amazon as well. At the same time, HYA's direct to consumer business has experienced a tougher and more expensive digital marketing environment and that is had a clear impact on subscriber growth this year. I do not want to gloss over that. it is a real challenge the business is confronting right now. But in the long run, I assure you that the brand equity HYA has built as the category leader in children's health and wellness is a durable asset that gives us multiple paths for growth. We see a very encouraging future as HYA expands into new retail channels new geographies new product categories and new customer demographics. Rise Wellness experienced a packaging issue that affected execution of the commercial plan during the quarter. Although that issue is resolved, we now expect that HYA's net sales for the full year to be lower than we previously anticipated. Again, when I look beyond this short term disruption, and focus on Rise's long term potential, I am very confident. Protein POP is barely a year into its life as a national brand and it is already built real distribution and shelf presence across major retail channels. The team is launching an additional protein pop product in the third quarter that demonstrates its commitment to speed and innovation. So yes, the current outlook has been disrupted but our conviction in where the brand is headed long term remains firmly intact. I see the potential synergy and growth opportunity in our company that through executing a clear strategy with discipline and stabilizing and strengthening our core nutritional business, while scaling our high potential ventures brand and investing in the technology and innovation that will define our next decade. We anticipate these efforts will stimulate growth and I am encouraged by the caliber and engagement of the teams driving this forward. Our balance sheet remains a real source of strength and opportunity for us. We ended the quarter with $169 million in cash, zero debt and generated $20 million of free cash flow driven in large part by efforts to improve our working capital management. Our financial flexibility allows us to keep investing in USANA's evolution into a diversified omnichannel health and wellness company even as we navigate near-term puts and takes across the portfolio. With that, let me hand it over to Doug to provide additional color on our second quarter financial results and our updated outlook as things come to fruition. G. Douglas Hekking: Thanks, Kevin, and good morning, everyone. There are 2 primary drivers that impacted this quarter's results that I want to briefly discuss. First, the company recorded an estimated preliminary noncash goodwill impairment charge of $29 million related to the higher reporting unit. This non cash charge primarily reflects the current lower-than-expected performance and changes in near term forecast. As well as updated valuation assumptions under applicable accounting standards including adjustments to market multiples, and discount rates. The impairment does not reflect a change in management's commitment to the business. We are confident in the future of HYA and its management team while recognizing their strategic importance as part of our long term growth strategy as they leverage the brand across additional channels in international markets. Second, we recorded $9 million in income tax expense on a pretax loss of $19 million during the quarter, which contributed to the loss. The aforementioned items created misalignment between where we generate revenue and where we incur costs and have the effect of disproportionately impacting income taxes. Now let me turn to our updated outlook for fiscal 26. We are lowering our full-year outlook that reflects the more difficult and expensive direct to consumer digital marketing environment affecting HYA's second half net sales and lower near-term net sales from Rise Wellness. Our core nutritional outlook is largely in line with expectations and is performance this quarter reinforces our confidence that the initiatives underway are the right foundation for long term sustainable growth. To be clear, this update is about near-term timing, not our long term conviction in either venture company. HYA and Rise Wellness are both continuing to build solid foundations with retail relationships product pipelines and market footholds that we believe will drive meaningful future growth. I will now hand the call back to Kevin before we open the line for questions. Kevin G. Guest: Thanks, Doug. Let me close with this. Our core nutritional business is performing in line with our expectations and gaining traction from the actions we have taken to stabilize it. And our balance sheet remains strong debt free and cash generative. HYA and Rise Wellness has encountered near-term challenges this quarter but both brands continue to build real momentum in retail e commerce and international expansion and we remain confident in their long term potential. We recognize that the path to building a diversified omnichannel health and wellness company will not always be linear. And we are managing the business accordingly with discipline and clear focus on long term value creation for our stakeholders. With that, I will now turn the call back to the operator for Q&A. Operator: Thank you. Before pressing the star key. Our first question comes from the line of Anthony Chester Lebiedzinski Sidoti and Company. Please proceed with your question. Anthony Lebiedzinski: Thank you. Morning, everyone. Thanks for taking the question. So the core nutritional segment, our expectations and certainly it was nice to see the sales growth in Greater China. So as it relates China, what do you think are the main factors driving the slight uptick in sales? And do you think the sales gains are sustainable going forward? Kevin G. Guest: that is an excellent question. I am going to ask Brent L. Neidig, our Chief Commercial Officer to respond to that. Brent L. Neidig: Hey, Anthony. Good morning. We were pleased we are pleased with the performance of China in the second quarter. As you recall from the last quarter, we did have a very robust incentive and new product launch offering in the first quarter. And anytime we do something like that, there always is a tail associated with it, and we saw that tail continue in the second quarter. We are pleased with the resiliency of our brand partners and our customers in the Chinese market. That economy is soft just like many economies around the world. But they have shown resiliency, and there is a tremendous amount of momentum that is been built up over the last several quarters with the initiatives that we have rolled out. So I expect to see that continue. So we are pleased. We have several things that are scheduled for the back half of the year, just like we do in many of our other markets in terms of product rollouts, incentive offerings, and other events. Pleased to see with the progress that we have made so far, we expect to continue. Kevin G. Guest: Hey, this is Kevin. I just wanted to add on to Brent's comments From my perspective, we have stronger leadership overall in China now than we have ever had And that leadership is really executing well on their strategy for the market. And our overall strategy for the company and we are seeing that in results Our President there, Peter, is doing a fantastic job and my confidence has never been higher in our Chinese leadership, which is a really bright spot for us. Brent L. Neidig: Thank you. Anthony Lebiedzinski: Then switching gears to North Asia, was a laggard for you guys in the direct business. So it was down 20% in revenue. Maybe if you could just take a stab at explaining what is going on there. I know it is a far smaller market in China, but nevertheless, it is important market. And what are your taking as far as steps to improve that trend? Brent L. Neidig: Yeah. So when we look at North Asia, Korea is our largest presence there. Korea has been a very big market for us in the past. We have seen a lot of slowing in that market over the last couple of years. I think I talked about this last quarter, but we went through a leadership transition. Beginning of the year in Korea. That always causes a little bit of disruption, but we are very pleased in our new general manager. For that market, and we are starting to see a lot of momentum beginning to build. there is unification taking place amongst the leadership team within the market. Including our brand partner leadership as well. So just the most recent reports and the things that we are seeing come out of that market, I have reason for optimism to see what is coming out of Korea. We also have a couple of-- new products that are going to be launched in that market, personalized packs that are gonna be unique to that market as well that is going to be launching here in this third quarter. So we are very optimistic to see where that takes us and I expect to see Korea rebound. Anthony Lebiedzinski: that is good to hear, certainly. And then switching gears to HYA. So, Certainly, I know you have Expanded Into Brick And Mortar And Doing Some International There As Well. But Just want to get A Better Sense As To How Is The Core Direct US subscription business doing. I do not know if you are prepared to give us exact number, but just wondering how it is doing on an organic basis, excluding some of the growth initiatives. that is an excellent question. Kevin G. Guest: And I am going to ask Walter Noot our Chief Operating Officer, who also from a home office perspective is managing that business the management team. Walter, will you give some color to that? Yes. Walter Noot: Thanks. So HYA as we talked about this, several quarters in a row, that with Meta, that is been the CAC's been going up. We have had issues with Meta's algorithm. And it is created-- it is created issues for us as far as customer acquisition. And we have seen improvement in that over the last let's say, last few months last month, let's say, we have seen improvement in those numbers, and that is been encouraging. The other thing is that it is back to school time. So that is a great time of the year for HYA. So we believe, you know, when you look forward, we think that is going to help us for this year. I mean, that is obviously a great thing. When we acquire customers, first order with HYA is half price, which is different than a lot of other subscription businesses. So you will see you know, as you look at our outlook, you can see that it looks let's say, somewhat flat but that is also assumed that we are going to be adding more customers with our subscription business on top of the retail that we are doing right now with Target. Anthony Lebiedzinski: Mhmm. Gotcha. So as you alluded to, you know, HYA has had some issues with Meta changing their algorithms and so on. So just wondering, what are your thoughts on shifting some of the advertising more towards, let's say, TikTok, for example, maybe using some influencers on there. You know, just wondering if you if there are ways that you can just try to diversify your efforts beyond Meta, which, as you have alluded to, you have had issues with. Yeah. Walter Noot: that is exactly right. that is exactly what the team's doing right now. We are with the HYA team. They have got plans in place. Throughout the rest of this year and beginning of next year. TikTok's going to be a big mechanism for them to be able to build growth and, of course, retail adding more retailers, and that is why we are we are very excited about the future of HYA where it is going. it is it is a transition time, I think, just, you know, we have been a subscription only business for what, 4 or 5 years, and it is been great. It has been awesome at that. Think that business is somewhat flattened out as you have seen. And HYA spent $150 million on advertising over the last x amount of years that is built a really, really good brand. it is got a great brand presence and really good awareness with parents and their kids And so we just see these opportunities in TikTok, retail, international business, we think the business is gonna do well in the future. Anthony Lebiedzinski: Okay. Sounds good. And then just shifting gears also to Rise Wellness. So is it possible for you guys to quantify the impact of the packaging issue in the second quarter? And the related costs associated with that? G. Douglas Hekking: Yes. Anthony, this is Doug. And Walter can kind of provide some clarity. he is he is been in the middle of it. But essentially, as we have identified the issue, and took proactive steps, it essentially stopped the sales from pushing through the channel. And I think, you know, I think doing the right thing, I think, represented us well with that customer and gives us future opportunity. But without a doubt, it was disruptive. We did take a charge for some inventory, and there is other inventory that we think we can go back and find a way to get out there where we feel good about standing behind the product. So that is big picture. But we had a much higher guidance range than what we provided. And that delta is really kind of the slowdown and kind of the ramp back up. But as Walter indicated, there is a lot of real positive momentum at RISE, some new product innovation that we see on the horizon. So we are quite excited about it. But, yeah, it is definitely been a short term disruption. Walter, anything else? Walter Noot: Mhmm. Yeah. It was a cosmetic issue with some packaging. We voluntarily pulled the packaging back the unsold product. It was not a safety issue or anything like that. We are gonna continue to be able to resell through that channel and through that those resellers through those retail outlets. Have good relationships with them. So, again, this is a short term thing, and it affects our quarter because we have negative impact on revenue. But we are we are very positive about where-- where Rise is going. it is a great brand. And if you look at the year, we have already exceeded what we did last year. To date. with Rise. So it is and there is a lot more coming. We have-- by year-end, we will have over 4 thousand retailers we are selling in. 4 thousand doors, and that is, you know, of a brand that is less than a year old. that is pretty good. G. Douglas Hekking: Yeah. And more specifically, Andy, the range relative to kind of the change from our original guidance in that $30 million to $40 million top line and probably about $4 million to $5 million pressure on margin just from having a little bit lower top line of some of that operational infrastructure. Anthony Lebiedzinski: that is very helpful color. And then, you know, last question for me, is just how do we think about the tax rate for the back half of the year? G. Douglas Hekking: Yeah. I think just because of the near term pressures we see in these venture companies, we are going to see an elevated tax rate. It just those things really contributed to structurally something where we have had a little misalignment with revenue, revenues are generated, costs are incurred and this amplified it. And so it is definitely going to be an elevated, tax rate through the year. Obviously, not what you saw in the second quarter on the catch up, but I think it will definitely be you know, much higher than what we would like to see it. And so we are definitely working on things and I think as we execute in these venture brands and work on some other things, you will see that come down prospectively, which we are confident we can do. Anthony Lebiedzinski: Sounds good. Well, best of luck. Brent L. Neidig: Thank you. Kevin G. Guest: Thanks, Anthony. Operator: Thank you. Our next question comes from the line of Ivan Feinseth with Tigress Financial. Please proceed with your question. Ivan Feinseth: Hi, good morning. Thank you for taking my question. So, some of the near term operational and goodwill issues, could you talk bigger picture? You know, you are evolving. It looks like you are evolving to me from a, you know, direct seller to an omnichannel distributor because now you have subscription, direct sellers, direct to consumer, now in store, availability? Can you give some of your thoughts on how you are growing that? And second, you have this tremendous vertically integrated product development manufacturing platform and how you could when you make acquisitions, bring more brands onto your platform, develop new products to increase to address what is an increasing interest on the consumer side on nutrition, preventative health, sports nutrition. So it looks like, you know, if you have a huge and growing market, and an infrastructure that you are building to address a market on multiple levels and multi different kinds of products, including the new 1 you said you just introduced the skincare supplement. Kevin G. Guest: Ivan, thank you. that is a great question. Strategically, if you look at the world overall, the wellness platform as you stated is a growth market and we are involved in a growth marketplace and we believe we are the best in the world at what we do And as we explore and find new ways to service consumers and grow consumers, our overall strategy statement is to grow consumers of our brands. We need more people every day putting what we make in their mouths. To put it simply. And that is what we are focused on. We have got it on signs hanging around the building. And that does lead us into the multi or the omnichannel approach and being better at what we do And just if you look at our core nutritional business, we have a massive opportunity just by upgrading our technology and making our products more accessible to the consumer and making the interaction be more relevant. I truly believe that the frequency of relevant communication equals brand loyalty And so as we focus on relevant communications leveraging technology, which is 1 of our major spends here as we invest in the change and evolution of the company it is more about interaction and experience and 1 thing you mentioned was our Glow product and it was really for me a test to really see the relevancy on some of our initiatives as much as it was a very, very good product launch, And we were very pleased with the amount of incremental business we were able to generate and new consumers who had not experienced our brand through a new approach and a new avenue. I am gonna ask Catherine Armstrong, our chief science officer, if you would, add some color to Ivan and the notion of product extension and how it could fit into an omnichannel marketplace. Also leveraging across the different categories, the opportunity we have there. Kathryn Armstrong: Hi, Ivan. it is good to talk with you again. So, I mean, exactly what you said. Right? We have a very strongly integrated R&D team, operations execution, and that is the strength we have that can be leveraged not just through what has been traditionally our core business, but through the acquisitions of the brands that we have acquired and through many other, you know, means. And so we are looking at how do we grow that, how do we make sure we are leveraging all of the talent we have at USANA in a way that best, drives return? For us, it is been a lot of fun as you and I have discussed as we look at these different formats and these different opportunities, things that we are learning in the core business globally has helped us as we look at, you know, for example, Haya's expansion and how we understand kids through the HYA market clearly can feed back into how we understand kids within our USANA core. So all of those are, you know, accurate reflections. insightful on your part and aligns with what we are thinking. Kevin G. Guest: When it comes to Glow, you know, I think that is really representative of who USANA is. Kathryn Armstrong: We started with ingredients that have strong clinical data. And we did not stop there. You know, we wanted to really think about how do you address skin from the inside and not just through a topical solution. So we took those, you know, clinically tested and relevant ingredients and then put them into a consumer challenge test to really understand if our consumers could see and feel the difference. it is important to us, as Kevin said, you know, we believe we are and will continue to be the best in this space. So for us, making sure we have that clinical data, those ingredients that are at the right doses in the right forms, and then ensuring that those deliver all the way through to the customer experience. Is important to all of our all of our businesses and all of our brands. Kevin G. Guest: And Ivan, I also have Dave Bagley here, who is our Executive Vice President over Product Marketing. And he works hand in glove with Catherine strategically on your question and I am-- would you add some color also to Ivan's question? Yeah. Thanks, Kevin. John Cuomo: Ivan, it is been a bit but it is good to chat with you again. Thanks for being on the call. I think at the root of it, it is not the activities we are doing. it is really, to Kevin's point, it is the strategy. And at the root of that is what are we doing to not just sell products, but really identify what the ideal customer looks like. And how do we offer something better to them than what the other people are offering. And Glow is definitely representative of that. We have a very strong audience in the women category. And they are looking to us as a trusted brand to bring unique and innovative solutions to them So I applaud Kevin's leadership in wanting to be able to look at some ways that are uncommon but yet very founded in science to deliver something meaningful that is more rooted in I would say, less marketing and more consumer experience. That elevates the USANA brand. So going to continue to lean into that and in partnership with Dr. Armstrong and her team, we are very confident where this is going. So we are excited about it. Ivan Feinseth: it is an interesting new product, a new category. it is good to see because everything is going back to gut health, including collagen synthesis and everything is in your gut, skin, digestion, health, So, it is a huge area. Even, let's say, teeth care is more even being focused on the gut than just toothpaste. So congratulations on the new product. Thanks, Ivan. Operator: Thank you. That concludes our question and answer session. I will turn the floor back Mr. Masuda for any comments. Andrew Masuda: Thanks Melissa and thank you all for your questions and participation on today's conference call. If you have any remaining questions, please feel free to reach out to Investor Relations at 801-954-7.21 thousand. Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in USANA Health Sciences, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USANA Health Sciences wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. USANA (USNA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in USANA Health Sciences, Inc.? Here are five stocks we like better. USANA lowered its full-year outlook after Hiya’s higher digital customer-acquisition costs and a packaging issue at Rise Wellness created an estimated $30 million–$40 million in revenue pressure and $4 million–$5 million in margin pressure. The core nutrition business remained broadly on track, with improving momentum in mainland China and early recovery signs in North Asia, supported by planned product launches, incentives and events. USANA recorded a preliminary $29 million non-cash goodwill impairment tied to Hiya, but ended the quarter with $169 million in cash, no debt and $20 million in free cash flow, maintaining financial flexibility for its omni-channel strategy. USANA Health Sciences (NYSE:USNA) said its core nutritional business remained in line with expectations during the second quarter of 2026, while near-term challenges at its Hiya and Rise Wellness ventures led the company to lower its full-year outlook. Chairman and Chief Executive Officer Kevin Guest said the company is continuing its transition toward a diversified omni-channel health and wellness business, combining its traditional brand-partner model with direct-to-consumer, retail and international distribution channels. → No Hangover: Revisiting Microsoft One Week After Earnings “We’re building a diversified omni-channel health and wellness company anchored by science and built on deep, lasting consumer loyalty,” Guest said during the company’s earnings call. Management highlighted improvement in mainland China, USANA’s largest and most established market. Chief Commercial Officer Brent Neidig said second-quarter performance in China benefited from momentum following a first-quarter incentive program and new-product launch, along with resilient brand partners and customers despite a softer economic environment. → MarketBeat Week in Review – 08/03 - 08/07 Neidig said the company has additional product launches, incentive offerings and events planned in China during the second half of the year. Guest added that he has increased confidence in the company’s leadership team in the market. USANA also discussed weakness in North Asia, where Korea is the company’s largest market. Neidig attributed some disruption to a leadership transition earlier in the year, but said the company is seeing early signs of renewed momentum. USANA plans to launch personalized packs unique to Korea during the third quarter. → Why the Landlord of the AI Boom Could Outlast the Chipmakers The company is also pursuing product innovation within its core business. Guest cited the recent launch of Glow, a skin-health supplement designed to extend USANA’s offerings beyond topical skincare. Chief Scientific Officer Kathryn Armstrong said the product was developed using ingredients with clinical data and consumer testing intended to determine whether users could see and feel results. Hiya, USANA’s children’s health and wellness brand, continued to expand its retail and international presence, according to management. Guest said the brand’s Target presence remains strong, while its early expansion in Canada and the United Kingdom has been trending positively. The Hiya team is also pursuing growth through Amazon. However, the company said Hiya’s direct-to-consumer subscription business has been affected by a more difficult and costly digital advertising environment. Chief Operating Officer Walter Noot said changes associated with Meta’s advertising platform and higher customer acquisition costs have pressured subscriber growth. Noot said recent customer-acquisition metrics have improved, and management expects the back-to-school period to support the brand. He also said Hiya is working to diversify its marketing approach through channels including TikTok, while adding retailers and continuing international expansion. “It’s a transition time,” Noot said, noting that Hiya had operated primarily as a subscription business for several years before expanding its retail strategy. Rise Wellness encountered a packaging issue during the quarter that disrupted its commercial execution and affected sales. Management said the problem was cosmetic rather than a product-safety issue, and the company voluntarily pulled unsold products from the channel. Chief Financial Officer Doug Hekking said USANA recorded a charge related to some inventory, while management believes other inventory can still be sold through retail channels. Noot said the packaging issue has been resolved and that Rise maintains positive relationships with retailers. Management said Rise expects to have products in more than 4,000 retail doors by the end of 2026. Guest said Protein Pop, which is less than a year into its national rollout, has established distribution and shelf presence with major retailers. The company plans to launch an additional Protein Pop product during the third quarter. Hekking said the changes from USANA’s earlier outlook reflected approximately $30 million to $40 million of top-line pressure, largely tied to the slowdown at Rise and a lower expected sales contribution from Hiya. He also cited roughly $4 million to $5 million of margin pressure from lower sales and operational infrastructure costs. USANA recorded an estimated preliminary non-cash goodwill impairment charge of $29 million related to the Hiya reporting unit. Hekking said the charge reflected current and expected performance, revised near-term forecasts and valuation assumptions, including market multiples and discount rates. He said the impairment did not change management’s commitment to Hiya or its view of the brand’s strategic role. The company also recorded $9 million in income tax expense on a pre-tax loss of $19 million during the quarter. Hekking said the tax expense was affected by a mismatch between where the company generates revenue and where it incurs costs, which was amplified by the venture-business pressures. He said USANA expects an elevated tax rate for the remainder of the year, although not at the second-quarter level. Despite the outlook reduction, Guest emphasized USANA’s financial flexibility. The company ended the quarter with $169 million in cash, no debt and $20 million in free cash flow, which he said was supported in large part by improved working-capital management. “The path to building a diversified omni-channel health and wellness company will not always be linear,” Guest said. “We are managing the business accordingly with discipline and clear focus on long-term value creation for our stakeholders.” 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "USANA Health Sciences Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Cash Position: Ended the quarter with $169 million in cash and zero debt. Free Cash Flow: Generated $20 million of free cash flow, driven largely by improved working capital management. Goodwill Impairment Charge: Recorded an estimated preliminary non-cash goodwill impairment charge of $29 million related to the Hiya reporting unit. Pre-Tax Loss: Reported a pre-tax loss of $19 million during the quarter. Income Tax Expense: Recorded $9 million in income tax expense on the pre-tax loss. Full-Year Outlook: Lowered the full-year 2026 outlook due to a more difficult direct-to-consumer digital marketing environment and lower expected net sales from Rise Wellness. Warning! GuruFocus has detected 7 Warning Signs with USNA. Is USNA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Usana Health Sciences Inc (NYSE:USNA)'s core nutritional business is performing in line with expectations, with Mainland China showing signs of renewed strength and sales growth. The company maintains a strong balance sheet, ending the quarter with $169 million in cash, zero debt, and generating $20 million in free cash flow. Usana Health Sciences Inc (NYSE:USNA) launched Glow, its first skin health supplement, extending its science leadership into cellular-level formulations and attracting new consumers. Hiya's brand presence at Target remains strong, with early footprints in Canada and the UK trending positively, and the team is seeing traction on Amazon. Rise Wellness has built real distribution and shelf presence across major retail channels, with over 4,000 retail doors expected by year-end, and is launching an additional protein product in Q3. Usana Health Sciences Inc (NYSE:USNA) is investing in technology and innovation to modernize the brand partner and customer experience, which is expected to drive long-term growth. Usana Health Sciences Inc (NYSE:USNA) recorded a non-cash goodwill impairment charge of $29 million related to the Hiya reporting unit due to lower-than-expected performance and updated valuation assumptions. Hiya's direct consumer business is facing a tougher and more expensive digital marketing environment, particularly with Meta's algorithm changes, which has impacted subscriber growth. Rise Wellness experienced a packaging issue that disrupted its commercial plan during the quarter, leading to lower full-year net sales expectations. Usana Health Sciences Inc (NYSE:USNA) lowered its full-year 2026 outlook due to the challenging digital marketing environment for Hiya and lower net sales from Rise Wellness. North Asia, particularly Korea, saw a 20% decline in revenue, attributed to a leadership transition and slowing market conditions. The company expects an elevated tax rate for the remainder of the year due to a misalignment between where revenue is generated and where costs are incurred. Q: Can you discuss the main factors driving the slight uptick in sales in Greater China and whether the sales gains are sustainable going forward? A: Brent Neidig, Chief Commercial Officer, noted that the strong performance in China was partly a tail effect from a robust incentive and new product launch offering in Q1. He highlighted the resiliency of brand partners and customers despite a soft economy, with momentum built over several quarters. Kevin Guest, CEO, added that leadership in China is stronger than ever, with the President, Peter, executing well on strategy, boosting confidence in sustained results. Q: What is causing the 20% revenue decline in North Asia, and what steps are being taken to improve the trend? A: Brent Neidig explained that Korea, the largest market in North Asia, has slowed over the past couple of years, partly due to a leadership transition at the start of the year. He expressed optimism about the new general manager, unification within the leadership team, and upcoming product launches, including personalized packs unique to that market in Q3, expecting Korea to rebound. Q: How is the core direct US subscription business performing for Hiya, excluding growth initiatives? A: Walter Noot, COO, stated that Hiya has faced challenges with Meta's algorithm changes, impacting customer acquisition, but has seen improvement in the last few months. He noted that back-to-school season is a strong period for Hiya, and while the outlook appears flat, it assumes adding more subscription customers on top of retail expansion with Target. Q: Are there plans to diversify advertising efforts beyond Meta, such as using TikTok, given the issues with algorithm changes? A: Walter Noot confirmed that the team is actively diversifying, with plans for TikTok as a significant growth mechanism through the rest of the year and into next year. He emphasized that Hiya has built strong brand awareness through $150 million in advertising, and now sees opportunities in TikTok, retail, and international expansion for future growth. Q: Can you quantify the impact of the packaging issue at Rise Wellness in Q2 and the related costs? A: Doug Hekking, CFO, explained that the proactive step to stop sales through the channel was disruptive, with a charge taken for some inventory. He noted the delta from the higher guidance range reflects the slowdown and ramp-up. Walter Noot added it was a cosmetic packaging issue, not safety-related, and the company will resell through retail outlets. Doug quantified the change from original guidance at $30-40 million, with about $4-5 million pressure on margin. Q: How should we think about the tax rate for the back half of the year? A: Doug Hekking indicated that due to near-term pressures in venture companies, the tax rate will be elevated through the year, though not as high as the Q2 catch-up. He noted a structural misalignment between where revenue is generated and where costs are incurred, and expressed confidence in bringing the rate down as the venture brands execute and other initiatives progress. Q: Beyond near-term operational issues, how are you evolving from a direct seller to an omnichannel distributor, and how can you leverage your integrated product development and manufacturing platform for growth? A: Kevin Guest emphasized the strategy to grow consumers of their brands through an omnichannel approach, focusing on relevant communication and technology investments. Kathryn Armstrong, Chief Scientific Officer, highlighted the strength of the integrated R&D and operations team, leveraging learnings across brands like Hiya and the core business. David Bagley, EVP of Product Marketing, added that the focus is on identifying ideal customers and offering better solutions, with Glow representing a science-backed innovation for the women's category. Q: Can you provide more color on the new Glow product launch and its significance? A: Kathryn Armstrong explained that Glow, the first skin health supplement, uses clinically tested ingredients at the right doses and forms, validated through consumer challenge tests to ensure visible and feelable differences. Kevin Guest noted it was a test of relevancy for new initiatives, bringing in incremental consumers through a new approach. David Bagley added that it leverages the strong women's audience and positions Usana as a trusted brand for unique, science-based solutions. Q: What is the outlook for the core nutritional business, and how does it factor into the updated full-year guidance? A: Doug Hekking stated that the core nutritional outlook is largely in line with expectations, with Q2 performance reinforcing confidence in the initiatives for long-term sustainable growth. The lowered full-year outlook reflects the difficult digital marketing environment for Hiya and lower net sales from Rise Wellness, not a change in long-term conviction for either venture. Q: Can you elaborate on the goodwill impairment charge related to Hiya and its implications? A: Doug Hekking explained that the $29 million non-cash goodwill impairment charge reflects current performance, changes in near-term forecasts, and updated valuation assumptions, including market multiples and discount rates. He clarified that it does not reflect a change in management's commitment to Hiya, which remains strategically important for long-term growth across additional channels and international markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company Continues Evolution to a Diversified, Omnichannel Health and Wellness Business SALT LAKE CITY, August 04, 2026--(BUSINESS WIRE)--USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal second quarter ended July 4, 2026. Key Financial Results Second Quarter 2026 vs. Second Quarter 2025 Net sales of $223 million versus $236 million. Net loss of $(21.4) million, which includes an estimated preliminary non-cash impairment charge(3) of $29.1 million, versus net earnings of $9.7 million. Diluted EPS of $(1.16) as compared with $0.52. Adjusted diluted EPS(1) of $(0.07) as compared with $0.74. Adjusted EBITDA(2) of $27.8 million versus $30.5 million. Core Nutritional Active Customers of 384,000 versus 418,000. Hiya Active Monthly Subscribers of 166,000 versus 200,400. Company updates fiscal 2026 guidance. Q2 2026 Consolidated Performance "Our consolidated second quarter results reflect mixed performance as the Core Nutritional business delivered results generally in line with our expectations, while our ventures businesses performed below expectations," said Kevin Guest, Chairman and Chief Executive Officer. "Specifically, Hiya continued to experience a challenging digital marketing environment, which pressured topline performance, subscriber growth, and margins. Additionally, Rise Wellness experienced a packaging-related disruption that impacted its commercial execution during the quarter. While we believe that these challenges for Hiya and Rise are temporary, and both companies remain well positioned to execute their growth strategies, we now expect net sales for these businesses during the full year to be below our prior expectations and are updating our outlook accordingly. "We remain confident in USANA's strategic transformation from a single-channel direct sales business into a diversified, omnichannel health and wellness company built on consumer acquisition and loyalty. We are continuing to evolve our Brand Partner incentive plan, accelerate product innovation, and modernize our technology infrastructure. We remain confident that these initiatives will lead to long-term sustainable growth. "Hiya’s talented management team continues to embrace the opportunity to leverage their brand across additional channels to reach a broader consumer base, while continuing to build on strong performance at a major national retailer, early-stage international expansion, and encouraging momentum in additional e-commerce channels. Rise Wellness’ high growth protein beverage brand, Protein Pop, is just a year old, and continues to attract new retailers, expand its presence with existing retailers and create the foundation for an exciting and expanded product pipeline. We recognize this progress will not always be linear quarter to quarter, and as we manage the business with that expectation in mind, our focus remains on building long-term loyalty from the consumers and Brand Partners who depend on our brands." Q2 2026 Segment Results Core Nutritional Hiya Health Rise Wellness Balance Sheet The Company ended the quarter with $169 million in cash and cash equivalents and zero debt. As of July 4, 2026, inventory totaled $95 million, a decrease of approximately $13 million, or 12% compared to balances at year-end 2025. The Company did not repurchase any shares during the quarter and has approximately $34 million remaining under the current share repurchase authorization as of the end of the second quarter. Fiscal Year 2026 Outlook The Company is updating its outlook for fiscal year 2026, as follows: "Our GAAP net loss and negative Adjusted diluted EPS this quarter reflect lower-than-expected commercial performance from Hiya and Rise, and we’ve updated our full-year outlook accordingly," said Doug Hekking, Chief Financial Officer. "Related to Hiya, we recorded an estimated preliminary non-cash goodwill impairment charge of $29 million. This non-cash charge primarily reflects recent performance and changes in near-term forecasts, as well as updated valuation assumptions under applicable accounting standards, including adjustments to market multiples and discount rates. Hiya continues to be a core element of our strategy and we remain confident and committed to leveraging the brand across channels and international markets to drive long-term growth. Additionally, an increase in the annual estimated income tax rate, which was driven by both current performance and lower near-term forecasts, disproportionately impacted the current-year quarter and contributed to the net loss. "Our balance sheet continues to be a source of strength, as we ended the period with $169 million in cash and debt-free. We also generated $20 million in free cash flow this quarter, driven in large part by improved working capital management. Financial flexibility remains important and is central to how we're investing in USANA's continued evolution from a single-channel direct sales business into a diversified, omnichannel health and wellness company." Non-GAAP Financial Measures This press release contains the non-GAAP financial measures Adjusted EBITDA and Adjusted Diluted EPS. Adjusted EBITDA is a non-GAAP financial measure of (loss) earnings before interest, taxes, depreciation, and amortization that also excludes certain adjustments as indicated below in the reconciliation from net (loss) earnings. Adjusted Diluted EPS is a non-GAAP financial measure of diluted (loss) earnings per share that excludes certain adjustments as indicated below in the reconciliation from diluted EPS. Adjusted EBITDA (non-GAAP) is net (loss) earnings (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (benefit from) provision for income taxes, depreciation and amortization, non-cash share-based compensation, transaction-related expenses and integration costs for the Hiya acquisition, cost realignment expenses, impairment expense, and gain on sale of assets. Adjusted EBITDA attributable to USANA (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to non-controlling interest related to Hiya. Adjusted diluted (loss) earnings per share (non-GAAP) is diluted (loss) earnings per share (its most directly comparable GAAP financial measure) adjusted for amortization of intangible assets, transaction-related expenses and integration costs related to the Hiya acquisition, cost realignment expenses, impairment expense, and gain on sale of assets. Management believes that Adjusted EBITDA (non-GAAP), Adjusted EBITDA attributable to USANA (non-GAAP), and Adjusted diluted (loss) earnings per share (non-GAAP), along with GAAP measures used by management, most appropriately reflect how the Company measures the business internally. The Company prepares its financial statements using U.S. generally accepted accounting principles ("GAAP") and investors should not directly compare with or infer relationship from any of the Company’s operating results presented in accordance with GAAP to Adjusted EBITDA and Adjusted diluted (loss) earnings per share. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of non-GAAP financial information as a tool for comparison. As a result, the non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP. Management Commentary Document and Conference Call For further information on USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, August 5, 2026 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, followed by a question-and-answer session. Safe Harbor This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements are based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as "expect," "enhance," "drive," "anticipate," "intend," "improve," "promote," "should," "believe," "continue," "plan," "goal," "opportunity," "estimate," "predict," "may," "will," "could," and "would," and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding commercial performance and growth for Hiya and Rise Wellness in 2026 and continued growth in the future; statements about the Company’s long-term growth; and the statements under the sub-heading "Fiscal Year 2026 Outlook." Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control, including: risks relating to global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Brand Partners; risk that our Brand Partner compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk associated with our launch of new products or reformulated existing products; risks related to Hiya’s ability to adapt to changes in the digital marketing environment to continue to generate customer acquisition, including changes in social media advertising algorithms; risks related to Hiya’s ability to perform in an expanding distribution channel and new international markets; risks related to Rise Wellness’ ability to execute its commercial plan and its dependence on product orders from certain key retailers – specifically, if future orders from those retailers do not meet our forecasts or such retailers discontinue purchasing and selling Rise Wellness products; risks related to governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China and other key markets, including potential adverse impact from tariffs, trade policies or other international disputes by and among the United States, China, or other markets that are important to the Company; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict between the United States and Iran; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with our operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; risk that Hiya and Rise Wellness disrupt the Company’s overall strategic plans and operations; the diversion of the attention of the management teams of USANA, Hiya, and Rise Wellness from ongoing business operations; the ability to retain key personnel of USANA, Hiya and Rise Wellness; the ability to realize the benefits of the Hiya acquisition, including efficiencies and cost synergies; the ability to successfully integrate Hiya’s business with USANA’s business, at all or in a timely manner; and the amount of the costs, fees, expenses and charges related to the acquisition. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this press release set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law. About USANA USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Brand Partners and Preferred Customers across 25 global markets. More information on USANA can be found at www.usana.com. USANA also owns a 78.8% controlling ownership stake in Hiya Health Products, a children's health and wellness company and a 100% interest in Rise Wellness. Hiya and Rise Wellness offer a variety of clean-label health products. More information on Hiya can be found at www.hiyahealth.com. More information on Rise Wellness can be found on www.risebar.com and www.proteinpop.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804653227/en/ Contacts Investor contact:Andrew MasudaInvestor Relations(801) [email protected] Media contact:Sarah Searle(801) [email protected]

Let’s dig into the relative performance of USANA (NYSE:USNA) and its peers as we unravel the now-completed Q1 personal care earnings season. While personal care products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products. The 9 personal care stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 3.5% below. Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest earnings results. Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products. USANA reported revenues of $250.2 million, flat year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and EPS estimates. Interestingly, the stock is up 12.6% since reporting and currently trades at $21.69. Is now the time to buy USANA? Access our full analysis of the earnings results here, it’s free. Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming. Estée Lauder reported revenues of $3.71 billion, up 4.6% year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations. The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $80.80. Is now the time to buy Estée Lauder? Access our full analysis of the earnings results here, it’s free. With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals. Herbalife reported revenues of $1.32 billion, up 7.8% year on year, exceeding analysts’ expectations by 1.4%. Still, it was a mixed quarter as it posted EBITDA guidance for next quarter missing analysts’ expectations. As expected, the stock is down 20.4% since the results and currently trades at $13.09. Read our full analysis of Herbalife’s results here. Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods. Medifast reported revenues of $76.04 million, down 34.3% year on year. This number beat analysts’ expectations by 9.9%. Overall, it was an exceptional quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Medifast delivered the biggest analyst estimate beat and highest full-year guidance raise, but had the weakest guidance update in the group. The stock is up 5.8% since reporting and currently trades at $11.25. Read our full, actionable report on Medifast here, it’s free. Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE:EPC) sells personal care products in the skin and sun care, shave, and feminine care categories. Edgewell Personal Care reported revenues of $519.5 million, flat year on year. This result met analysts’ expectations. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA and organic revenue estimates. The stock is up 19.3% since reporting and currently trades at $27.23. Read our full, actionable report on Edgewell Personal Care here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

USANA’s first quarter saw steady performance, with revenue flat year-over-year and a positive market reaction following results that surpassed Wall Street expectations. Management credited sequential improvements in their core nutritional business to active customer growth, particularly in China, and highlighted the impact of new product launches and investments in technology modernization. CEO Kevin Guest emphasized, “Our first quarter results reflect USANA’s continued and deliberate transformation from a single-channel direct sales business to a diversified omni-channel health and wellness platform.” Is now the time to buy USNA? Find out in our full research report (it’s free). Revenue: $250.2 million vs analyst estimates of $241 million (flat year on year, 3.8% beat) Adjusted EPS: $0.61 vs analyst estimates of $0.44 (38.6% beat) Adjusted EBITDA: $28.36 million vs analyst estimates of $22.23 million (11.3% margin, 27.6% beat) The company reconfirmed its revenue guidance for the full year of $962.5 million at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.12 at the midpoint EBITDA guidance for the full year is $105 million at the midpoint, above analyst estimates of $100.2 million Operating Margin: 5.5%, in line with the same quarter last year Market Capitalization: $321.7 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Anthony Chester Lebiedzinski (Sidoti & Company) asked about macro conditions in China and the potential impact of rising fuel prices from the Iran conflict. Chief Commercial Officer Brent L. Neidig responded that China’s consumer environment remains stable, with no material impact seen yet. Lebiedzinski (Sidoti & Company) sought more detail on the product innovation pipeline. Chief Science Officer Dr. Kathryn Armstrong confirmed over 20 products are in development, focused on women’s and children’s health, as well as leveraging channel learnings. Lebiedzinski (Sidoti & Company) inquired about HYA’s international expansion and Target launch. Neidig shared that Canadian results exceeded expectations, UK is in early stages, and Target is in rollout, with optimism for both channels. Lebiedzinski (Sidoti & Company) questioned the sustainability of Rise Wellness’ retail momentum and additional retailer partnerships. CFO G. Douglas Hekking confirmed weekly reorders from Costco and agreements with nine more major U.S. retailers. Ivan Philip Feinseth (Tigris Financial Partners) asked about R&D priorities and gut health. Armstrong detailed a focus on women’s and children’s health, clinical research, and active nutrition, with new launches in China and plans for further expansion in gut health products. In the coming quarters, our analysts will be monitoring (1) the pace of omni-channel sales growth, especially as HYA and Rise Wellness expand their retail and international footprints; (2) the success of new product launches in women’s health, children’s health, and active nutrition; and (3) progress on technology modernization and its impact on margins and customer experience. Expansion into additional large retailers and early signs of operational efficiencies will also be important markers. USANA currently trades at $17.41, down from $19.26 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.