USANA Health Sciences, Inc. (NYSE:USNA) Q1 2024 Earnings Conference Call May 1, 2024 11:00 AM ET

Company Participants

Andrew Masuda - Investor Relations
Jim Brown - President & Chief Executive Officer
Brent Neidig - Chief Commercial Officer

Conference Call Participants

Anthony Lebiedzinski - Sidoti & Company

Operator

Hello and welcome to USANA Health Sciences First Quarter Earnings Call. My name is George. I'll be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions]

I'd now like to hand the call over to your host today, Andrew Masuda. Please go ahead, sir.

Andrew Masuda

Thank you, George, and good morning, everyone. We appreciate you joining us to review our first quarter 2024 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 our 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 2024 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 Chief Commercial Officer, Brent Neidig as well as other executives. Yesterday after market closed, we announced our first 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. Solid first quarter results were driven by strength in our Mainland China market. Consolidated net sales totaled $228 million, down 5% year-over-year in constant currency, but up 2% sequentially in constant currency. We also delivered diluted EPS of $0.86 and generated $18 million of operating cash flow.

Our performance in Mainland China was strong and benefited from a successful sales promotion designed to reward associates for growth in their business. This incentive helped to generate 10% year-over-year growth in local currency net sales and 15% growth in active customers.