USANA Cuts 2021 Outlook as Lockdowns Soften Third Quarter Sales

USANA gave preliminary third-quarter results and cut its fiscal 2021 outlook. Net sales for the quarter ending October 2 were expected at 265 million to 270 million dollars, compared with 299 million dollars a year earlier. Diluted earnings were expected at 1.28 to 1.33 dollars a share, compared with 1.44 dollars. Final results were planned for October 26, 2021.

Chief executive Kevin Guest said COVID-19 lockdowns disrupted customers, the sales force, shipping, and events, and that some product launches were delayed into 2022. Less favorable currency also hurt the quarter. Full-year net sales guidance was reduced to 1.18 billion to 1.20 billion dollars from 1.24 billion to 1.28 billion dollars. Diluted earnings guidance was reduced to 5.80 to 6.00 dollars from 6.15 to 6.50 dollars. Guest still expected sales growth of 4 percent to 6 percent and another record sales year.

The board increased the share repurchase authorization to 150 million dollars, including 14 million dollars that remained as of September 16, 2021. Purchases can be made in the open market or through block trades depending on market conditions and cash.