USNA - Earnings call transcript Q1 2021 | USANA Health Sciences, Inc.

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Operator

Good day, and welcome to the USANA Health Sciences First Quarter Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrique Richards, Executive Director of Investor Relations and Business Development. Mr. ahead. go please Richards,

Patrique Richards

accessed morning. will our you conference first live site. the can being Good at Web morning Shortly available ir.usana.com. call us on to broadcast following be and webcast review quarter a via from We you. our joining site replay appreciate call, this is directly be Thank results. Web Today's our

and this outlook the commentary and closed, before our first now Kevin for announced results financial include duration we disclosures, quarter by call Chief will should performance course financial actual Jim We'll Financial make brief during to materially, our that on with our statements. of related as specific a in joined the We strategies considered SEC. well of or as regarding market pandemic conjunction Web uncertainty our remarks including in this posted for Yesterday be projected our the of call, uncertainties Chairman filings events of the Kevin that reminder, other contained the the from statements COVID-XX future statements from and forward-looking questions. as as results Board, Those our and operations management the Guest; of Hekking; forward-looking hear regarding with caution the statements recent our I'm company. in risk and data perhaps scope magnitude, and involve factors opening the site. you CEO well our statements our future of these As to management the after conference Brown; Examples results such impact to executives. results company's document risks and most those differ, results. financial the cause fiscal and these business, outlook morning President, Officer, year Doug XXXX, could

Kevin Guest

and for quarter of quarter first each joining increased continued to appreciate performance Pat, by and great Accordingly, expected our customers to excellent of quarter for strong and sales USANA. another driven first generated products. Thank a us diluted everyone. execution growth and review results. our double-digit morning and full exciting This total We We the and good high-quality demand sequentially. better outlook. start raised year you regions was you, year-over-year our than an initiatives EPS successful and we've net nutritional year This is both our sales was our in

anticipated our financial to approach key and much management, appreciated several digestive product been a hydration. performance, and product encouraging. as In This our line healthy energy to and initial customers In the new, accomplished addition active other health, very we has holistic as well line initiatives. promotes March, we from nutrition launched our weight late reactions

States, line the Mexico, line to New launch of as Australia to the While additional the United roll the we and Zealand, initial Canada, the out limited progresses. was year plan markets to

allow enhancements their Additionally, a These experience we strategy, to others. enhancing on customers digital USANA which with shopping further interact experiences execute while the overall easily with emphasis the consumers China experience continue for with entails sharing particular our to our market.

I'll updated briefly our Finally, comment guidance. on

diluted in both and raised sales we we EPS As guidance. release, noted net yesterday's

quarter is quarter sales offered during in quarter for have the XXXX, is time each of as and the quarter strategies, limited reasonably planned customers reward being sales quarterly second this strategy. growth are are sales which both similar net was take Doug we markets. our sales worldwide continued up lines first of net the we XXXX. third In response designed for that for program I'll new closing, anticipate short-term our While during wall period Research. [Operator don't to program our a believe for very we questions. the further successful. a the of we of expect Lane offered the guidance, second in and positioned we year. the in Instructions] confident to We We noted a long-term that year in we quarter. associates short-term highest With to for second provide Accordingly, we our are from sales offering and a for our operator overall Operator of question please program to and We'll This similar that, now Lane open the ask be

Doug Lane

particularly active third in recently, markets, Kevin, bit what since just the in the you quarter granularity into more quarter introduced I the the launch on where but timing that? nutrition the fourth do mean, see second quarter, a market for you to specifically late China? Asian little mentioned you or

Doug Hekking

Doug. This Doug. Yes, is

timeframe I So stuff, be rollout probably products the of line overall we'll not expect kind is the they're regulatory some because kind the going of in some China, just I full year. year. mean, But of don't here. products obviously the the having other current category this the for with to fiscal think doing product in

Doug Lane

But Korea, of Philippines, those markets? kind

Doug Hekking

rollout touch if maybe on maybe Yes, you schedule. Jim, the just

Jim Brown

Yes.

day more in third of And like it March. year. quarters focused before, We this actually active we've nutrition with talked much Pacific six fourth have Asia and started the markets pretty in about the happening last in

first more impact launched. know, the in rollouts third impact first the the for remaining as sales we'll impact we 'XX in on see more quarter that So because, again, an markets. the of an the But you for quarter, going again, the see start fourth happened really in we'll quarter, the and have markets second didn't of the the were

Kevin Guest

line NUTRIMEAL of the piece and we're the is China and this And follow-up And Active real line active Nutrition. China. to follow-up thinking replacement which back quick Doug, line. expecting is the it our is maybe But won't a nutrition of or in be And Part active we're maybe NUTRIMEAL. meal a drink, -- nutrition QX QX Kevin. that a Doug on is

strategy, build investment been the kind alignment think rolling of out the the in of investment we've I brands. just and the an plant, from

what pretty we're what excited about do. obviously I seeing. quite the we're initial internally launch it's I by And think But during excited this period. response; could think I think we're

Doug Lane

weeks I into you're Well, four mean, it.

So have I would you some read, should imagine. initial

or the in got rolled stuff when on talk numbers fourth promotion surface, comparisons out the So growth this that's driving is third comparisons help near-term good sales is the hear. But that a you've then, some going in work, that in the last we in pretty with way Can you at new the least a because bump I is product about the -- quarter. my And see sharp get to deceleration cover second that particularly you and just the from math that of quarter. of under what being year?

Kevin Guest

Yes, we week. look last I if that but think the quarter then, third your And quarter last of about extra year, the we the the accurate, had talking you third last we're in observations promotion and second of same fourth year, of ran the quarter quarter year. the year are comps fiscal this at that

are yes, were are few we're the we're right. I that us events So in modestly. But the quarter our think other doing There for pleased you're first results beyond stuff. a expectations how executing and with

Doug Lane

quarter then, in And here. China X.X%. the Mainland couple years the the a of just yes. in Yes, best organic growth Probably of lastly, least

Or a just feel growth of to get going again, in one-off on sustainability growth promotion we kind there? trying sustainability the see something can that of Was a event rate? for some Mainland accelerated to this expect is there So China? of

Kevin Guest

running it the be think I second we're mean, markets. what that's like talked all we quarter. would mindful, about, in I the in

Year, benefit bit management and takes see expect that did additive. China with our packs similar Chinese China, We the New year customer go responsibility they that I and hearing for from obviously just we and keep packs, and we care going type We little on go well. Year to is to back and what and team but of And and really itself that back this definitely forward. got executives talked So China was driving positivity account Lunar growth last to promotional the that think year, we're better a New sold often number then offer that. right around in just had as

Operator

Thank Jefferies. our And take of Sebastian Barbero from will you. next we question

Sebastian Barbero

in issue your little more your consumer recent health if as going and bit wondering well growth market, it Chinese hold [Indiscernible] the see consumer any now changes but as in China, ability to accelerating the trends in meetings could a is give the of platform? through on behavior, WeChat color percentage you encouraging to what the sales QX, in also are

Kevin Guest

us. the market China Neidig, sitting and with let in who is that. responsibility comment him Brent on chime We'll for has So

Brent Neidig

this normal would things And that a the Yes, is slow really are normal helped Corona somewhat virus year growth. last to The from think returning I condition. returning say somewhat market to down I impacts the year.

to returning normal state. it's So somewhat

Sebastian Barbero

the be size have if you meetings today. to And what's of And them? holding an ability so,

Brent Neidig

in returned. Yes, the holding meetings They're at years have were not past. we degree, same as

So on about And it were of that upward -- XX% WeChat enrollments experienced there. enrollments going is platform. come also weekly you that referenced our trend an WeChat through the

Sebastian Barbero

Got it.

results, XX% QX the year. And of the for guided for XX the team Okay. growth to China X%

Now, QX was XX%.

China in bit changes of delivery for So an growth? do over of full any year flexibility your a terms to guide there, have you

Brent Neidig

we No, don't.

present isn't we outperformed Chinese promotional And I in like these to think few China expected. as and year still ebbs numbers. I we quarter, in And Year right New expect we a and And maybe do range every some kind we're this that good good said, different short-term our in Sebastian, same progress. periods. relative kind of, there's around that level flows indicated what growth in think of expect the of things see

Sebastian Barbero

preferred the you're tools yours training still are And the [premise] Thank that providing? starting be the customer, of digital was learn of model base past of And improve to the [ph] personalization to digital high Okay. you. more goal which customer couple towards, of been you're to about Curious investments evidence the in has your expecting also, associates how feedback more new then, that getting there's a experience? years. over shifting from been you've and early,

Kevin Guest

obviously, and customers. the And over see with definitively have customers. years; and the go focus several last again, Yes. our we've I increased accounts preferred we that the back mean, can on you really preferred

information. general job to and refined associate. And and And Our more, the the training we the is the communication programs belief you're to just But more more it underway. that's market by is is, right better business. well easier consumer, directly build a easier the something is

there. and there's but game, for associates something have past some going us certain opportunity from success the And we in seeing and that we're listening. And purchased have of and also looking retargeting that back pretty go be at we're of on that teams short-term host working to able We're kind and responsive to We actively customer a some seeing. are the customers early that in we're on-boarding with behaviors feedback forward. fairly see

Sebastian Barbero

you QX Okay. An is, of of [ph] capital million Can allocation you remaining [XX] us through for under year? announcement from remainder shares you plan. in back bought the priorities of think the help existing $XX this

Kevin Guest

Sebastian, you're right.

obviously performance this of as things for relative one in we've kind that our And see be bit think year disconnect. spend go of I seeing lot with the with in come what things today, you're But first opportunistic models bit up those back environment the a back. how too. strategic those evaluating see could out I running. variety the level be looking similar the You there. from I And the that a go MCRO which to you opportunity, We -- business our were been even And mentioned, some expected guidance. to still think obviously, at relative see a there, of we and little a down And But different out year you'd in annual see to we've release little in pattern. think a we and see maybe we'll of we been initiatives. to where going we've laid pretty a with similar to from fruition the past, provided we cash price think you can development viewed I we we're levels in we've stuff, of our out

down existing that focus path. of after everything then business, So that. kind into a of we'll The kind rank keep our falls priority is growing pushing primary else

Operator

turn to Thank This to like Patrique Richards. back concludes session. now over you. today's question-and-answer would I it

Patrique Richards

call. you questions Thank your conference participation for for today's on your and

free questions, If contact Investor you at have feel remaining XXX-XXX-XXXX. please any Relations to

Operator

participation for Thank you, today's gentlemen your and call. ladies in

disconnect. now may You

USANA Health Sciences (USNA) 28 Apr 212021 Q1 Earnings call transcript