USANA Health Sciences, Inc. (NYSE:USNA) Q2 2023 Results Conference Call July 26, 2023 11:00 AM ET

Company Participants

Andrew Masuda - Director, IR

Jim Brown - President, CEO

Doug Hekking - CFO

Brent Neidig - Chief Officer, MD China

Walter Noot - COO

Conference Call Participants

Anthony Lebiedzinski - Sidoti

Linda Bolton-Weiser - D.A. Davidson

Susan Anderson - Canaccord Genuity

Operator

Good day, everyone, and welcome to USANA Health Sciences Second Quarter Earnings Call. Today's call is being recorded.

And now at this time, I'd like to turn the call over to Andrew Masuda. Please go ahead.

Andrew Masuda

Thank you, and good morning, everyone. We appreciate you joining us to review our second 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 make 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, our Executive Chairman, Kevin Guest; as well as other executives. Yesterday, after the market closed, we announced our second 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 appreciate you joining us. We're pleased to report second quarter operating results that were better than our expectations. During the quarter, we saw further stabilization in our active customer counts, stronger-than-anticipated net sales in Mainland China and continued progress on several of our long-term strategic initiatives. As we mentioned in our first quarter call, first quarter net sales included approximately $12 million related to purchasing in Mainland China for our immunity products following the lifting of COVID restrictions, and approximately $13 million related to buy up ahead of announced price increases in several markets.