USANA Health Sciences lowered its full-year 2026 outlook and disclosed a preliminary noncash goodwill impairment charge of $29 million related to its Hiya reporting unit. CFO G. Hekking attributed the lowered guidance to a more difficult and expensive direct-to-consumer digital marketing environment affecting Hiya’s second-half net sales and lower near-term net sales from Rise Wellness, which experienced a packaging issue that disrupted commercial execution during the quarter. The company recorded $9 million in income tax expense on a pretax loss of $19 million, while ending the quarter with $169 million in cash, zero debt, and $20 million of free cash flow. Management emphasized that the impairment does not reflect a change in commitment to the business and that the outlook revision is about near-term timing rather than long-term conviction in either venture company. CEO Kevin Guest noted that the core nutritional business is performing in line with expectations, with Mainland China showing renewed strength.
USANA Health Sciences IncLowers 2026 outlook and records $29M goodwill impairment, with CFO citing difficult digital marketing and packaging issues.
Goodwill impairment of $29M and lower net sales due to expensive digital marketing environment.
