USANA Health Sciences, Inc. (NYSE:USNA) announced Wednesday it was lowered its guidance for FY19. The company also reported weak preliminary results for the second quarter.
The Salt Lake City-based USANA anticipates that second quarter 2019 net sales will range between $253 and $256 million, compared with $301 million in the prior-year period, and earnings per diluted share will range between $0.91 and $0.95 per diluted share, compared with $1.36 per diluted share in the prior-year period.
Upon reporting its first quarter results on April 30, 2019, the Company disclosed the challenging consumer environment it encountered in China during the quarter, due largely to the negative media coverage of the health products and direct selling industries in China.
The company also disclosed that it expected to see a more typical operating environment in China beginning in the second quarter, and that its business would continue to accelerate during the second half of the year.
During the second quarter, however, the company continued to encounter a challenging consumer environment in China and, consequently, net sales for the quarter were softer than previously expected.
Net sales for Q2 are projected to be $253-$256 million, compared to $1.21 to a previous full-year guidance range of $1.21- $1.26 billion in last year.
Said CEO Kevin Guest, Chief Executive Officer. "We began executing our planned promotional activity for 2019 during the second quarter, including in China. The promotions we offered have historically generated meaningful sales and customer growth, but did not generate the results we anticipated during the second quarter, as consumer sentiment remained low."
USNA shares plummeted $14.46, or 18.9%, to $62.17 soon after Wednesday’s opening bell
