USANA Health Sciences (USNA) stock plummeted 5.15% in Thursday's pre-market trading session despite reporting solid fourth-quarter and full-year 2024 results that exceeded expectations.
The nutritional supplements and skincare company reported a 7% sequential increase in net sales for Q4 2024, driven by positive response to promotional activity, particularly in the US market. Adjusted diluted earnings per share also rose 14% sequentially during the quarter.
However, USANA acknowledged the need to "pivot in a few key areas" in 2024 to position the company for long-term growth. This included reorganizing its research and development department, as well as combining its sales and marketing teams into a unified commercial team.
For 2025, USANA plans to accelerate new product launches, enhance its associate incentive offerings, and strengthen its brand messaging to drive customer growth. The company also recently acquired a 78.8% stake in Hiya Health, a fast-growing direct-to-consumer children's health and wellness company, for $205 million.
While providing guidance for continued momentum in markets like the US, Australia, and New Zealand, USANA cautioned that the China market remains challenging. Overall, the company expects its Hiya Health acquisition to contribute revenue between $145 million and $160 million in 2025, representing growth of 29% to 42% compared to 2024.