USANA Health Sciences, Inc. (NYSE:USNA) Q3 2023 Earnings Conference Call October 25, 2023 11:00 AM ET

Company Participants

Andrew Masuda – Investor Relations

Jim Brown – President and Chief Executive Officer

Doug Hekking – Chief Financial Officer

Brent Neidig – Chief Commercial Officer

Conference Call Participants

Anthony Lebiedzinski – Sidoti

Doug Lane – Water Tower Research

Ivan Feinseth – Tigress Financial Partners

Operator

Hello and welcome to USANA Health Sciences' Third Quarter Earnings Call. My name is Valeria and I'll be your coordinator for today's event. Please note that for the duration of the call, your line will be on listen-only. However, you will have the opportunity to ask questions. [Operator Instructions]

I will now hand you over to your host, Mr. Andrew Masuda to begin today's conference. Thank you.

Andrew Masuda

Thanks, Valeria, and good morning everyone. We appreciate you joining us to review our third quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will be making forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ perhaps materially from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2023, as well as uncertainty related to the economic and operating environment around the world, our operations, and financial results.

We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. I'm joined by our President and CEO, Jim Brown; our Chief Financial Officer, Doug Hekking, as well as other executives. Yesterday, after the market closed, we announced our third quarter results and posted our management commentary document on the company's website. We'll now hear brief remarks from Jim before opening the call for questions.

Jim Brown

Thank you, Andrew, and good morning everyone. We continue to face a challenging operating environment during the third quarter. The economic environment is having an impact on consumer behavior in many of our markets. Our sales force is finding it more challenging to engage and attract new customers and associates. The cadence of our promotional activity during the quarter was lower when compared to both the prior quarter and the third quarter of 2022. This decision was deliberate as part of our strategy to find the most appropriate balance of incentives, promotions, and in-person events for the full year.