Stock Market

Usana stock drops 10% after China’s COVID lockdowns blamed for reduced forecast

Usana Health Sciences Inc. shares fell in the extended session Wednesday after the nutritional-supplement sales company lowered its forecast for the year, blaming lockdowns in China for disrupting regional sales programs.

Usana
USNA,
+1.78%

shares dropped 10% after hours, following a 1.8% rise in the regular session to close at $76.51.

The company lowered its earnings forecast for the year to a range of $3.85 a share to $4.45 a share, down from a previous forecast of $5 to $5.70 a share. Also, Usana said it expects revenue between $1.02 billion to $1.07 billion, instead of the previously forecast $1.1 billion to $1.2 billion.

Analysts surveyed by FactSet Research had forecast earnings of $5.27 a share on revenue of $1.13 billion.

“Our sales performance during the second quarter was below expectations, as COVID-related lockdowns, restrictions, and other disruptions continued in mainland China and other markets,” said Kevin Guest, Usana’s chief executive and chairman, in a statement. “These challenges were particularly disruptive to the regional sales program we offered in several key markets during the quarter, and ultimately caused participation in the program, sales results and active customer counts to come in lower than anticipated.”

“Importantly, this program was designed to be a catalyst for sales and customer growth not only during the quarter, but also in the second half of the year,” Guest added. “As a result of this and the continued uncertainty surrounding the operating environment going forward, we anticipate softer sales and customer counts in the second half of the year.”

For the second quarter, Usana forecast earnings of $1.05 a share on revenue of $265 million. Analysts had forecast $1.26 a share on revenue of $274 million.

Related News  Investing in Chinese stocks amid coronavirus and tensions with the U.S.

For more updates check below links and stay updated with News AKMI.
Life and Style || Lifetime Fitness || Automotive News || Tech News || Giant Bikes || Cool Cars || Food and Drinks

Source

Tags
Show More

Related Articles

Back to top button

usa news wall today prime news newso time news post wall

Close