What Happened?
Shares of health and wellness products company USANA Health Sciences (NYSE: USNA) fell 8.8% in the afternoon session after the company's fourth-quarter 2025 earnings report highlighted a significant drop in profitability, overshadowing beats on headline revenue and profit estimates.
While the health and wellness company met revenue expectations at $226.2 million and posted an adjusted profit of $0.60 per share that was 46.3% above analyst estimates, investors focused on underlying weaknesses. The company's operating margin fell to 1.7% from 3.8% in the same quarter last year, and its gross margin also declined, suggesting pricing pressure or rising costs. Furthermore, adjusted earnings per share were down from $0.64 a year ago. These signs of eroding profitability, combined with a history of declining sales and earnings over the past three years, likely prompted the negative market reaction.
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What Is The Market Telling Us
USANA’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 20.7% on the news that the company announced preliminary third-quarter results that fell below expectations, signaling a sharp decline in profitability. Although net sales were expected to increase to approximately $214 million from $200 million in the same period of the previous year, earnings from operations dropped significantly to $1.2 million from $15.6 million. The company pointed to two main issues for the poor performance. First, the rollout of a new compensation plan for its Brand Partners led to a more pronounced slowdown in sales and productivity than anticipated. Second, its direct-to-consumer business, Hiya, had weaker sales due to lower-than-expected customer acquisition. Consequently, USANA anticipated a net loss of $6.5 million for the quarter, a stark reversal from the $10.6 million in net earnings reported a year earlier.
USANA is down 2.2% since the beginning of the year, and at $19.01 per share, it is trading 46.3% below its 52-week high of $35.43 from July 2025. Investors who bought $1,000 worth of USANA’s shares 5 years ago would now be looking at an investment worth $210.01.
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