USANA Health Sciences, Inc. (NYSE:USNA) Q3 2024 Earnings Call Transcript October 23, 2024 11:00 AM ET

Company Participants

Andrew Masuda - IR
Jim Brown - President and CEO
Douglas Hekking - CFO
Brent Neidig - CCO

Conference Call Participants

Anthony Lebiedzinski - Fidelity Sidoti
Linda Bolton Weiser - Davidson

Operator

Good day, and welcome to today's Usana Health Sciences Third Quarter Earnings Conference Call. Throughout today's recorded presentation, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] And now, I'd like to hand the call over to Andrew Masuda. Please go ahead, sir.

Andrew Masuda

Thank you, Sergei, and good morning, everyone. We appreciate you joining us to review our third 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 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 the market closed, we announced our third quarter results 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. Third quarter net sales fell modestly short of our internal expectations as the operating environment in many of our key markets remained challenging. Notably, our China market experienced a more challenging environment in the third quarter than what we experienced during the first six months of the year. Although we increased active customer counts by 7% year-over-year in this important market, our net sales declined by 4% due to a decrease in average spend.