Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.1
Segment Information
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company primarily operates as a global nutrition, personal health and wellness company that develops and manufactures high quality, science-based nutritional, and personal care products. As of March 29, 2025, the Company had two reportable segments: direct selling and Hiya direct-to-consumer.
Management identifies segments based upon the Company's organizational and management reporting structure. The direct selling segment develops and manufactures high quality, science-based nutritional, personal care and skincare products with a primary focus on promoting long-term health and wellness in various geographic markets worldwide that are distributed through the direct selling channel. The Hiya direct-to-consumer segment became a new reportable segment resulting from the Hiya Acquisition at the end of 2024, which occurred after March 30, 2024. Hiya is a leading provider of high-quality children’s health and wellness products in the U.S. that are distributed through the direct-to-consumer channel. Additionally, the Company has operating segments that are not currently material and included as a component of “Other.”
The operating segments reflect the Company's primary sales channels and represent the way the chief operating decision maker ("CODM") evaluates the Company's business performance and allocates resources. The CODM is the Company's Chief Executive Officer. The CODM evaluates the performance of each segment based on segment earnings from operations in order to determine how to allocate the Company's resources across its operating segments, including allocating capital and personnel. The CODM does not evaluate operating segments using asset information, accordingly, the Company does not report asset information by segment.
Summarized financial information for the Company’s reportable segments is shown in the following tables, including significant segment expenses that are regularly reviewed by the CODM.
Three Months Ended
March 29, 2025
Direct selling Hiya direct-to-consumer Other Total
Net sales (1)
$ 210,452  $ 37,089  $ 1,998  $ 249,539 
Less:
Cost of sales 37,180  14,107  1,158  52,445 
Associate incentives 89,843  —  142  89,985 
Selling, general and administrative (2)
65,941  23,513  1,984  91,438 
Segment earnings (loss) from operations $ 17,488  $ (531) $ (1,286) $ 15,671 
Reconciliation of segment earnings from operations
Interest income 723 
Interest expense (411)
Other, net 756 
Earnings before income taxes $ 16,739 
______________________________
(1)The direct selling segment excludes $764 of intersegment net sales.
(2)Includes amortization of acquired intangible assets of $306 and $4,455 for the Direct selling and Hiya segments, respectively.
NOTE K – SEGMENT INFORMATION - CONTINUED
Three Months Ended
March 30, 2024
Direct selling Other Total
Net sales (1)
$ 226,148  $ 1,652  $ 227,800 
Less:
Cost of sales 42,267  802  43,069 
Associate incentives 95,556  202  95,758 
Selling, general and administrative (2)
62,730  1,570  64,300 
Segment earnings (loss) from operations $ 25,595  $ (922) $ 24,673 
Reconciliation of segment earnings from operations
Interest income 2,676 
Interest expense (52)
Other, net (186)
Earnings before income taxes $ 27,111 
______________________________
(1)The direct selling segment excludes $420 of intersegment net sales.
(2)Includes amortization of acquired intangible assets of $306 for the Direct selling segment.
Three Months Ended
March 29,
2025		 March 30,
2024
Depreciation and amortization:
Direct selling $ 3,520  $ 2,799 
Hiya direct-to-consumer 4,483  — 
Other 336  359 
Consolidated total
 $ 8,339  $ 3,158 
No single Associate accounted for 10% or more of net sales for the periods presented. The table below summarizes the approximate percentage of total product revenue for our direct selling and Hiya direct-to-consumer segments, and other category, that has been contributed by the Company’s nutritional supplements, food, and personal care and skincare products for the periods indicated.
Three Months Ended
March 29,
2025		 March 30,
2024
Direct selling:
USANA® Nutritionals 75  % 87  %
USANA Foods(1)
5  % 6  %
Personal care and skincare 4  % 6  %
Hiya direct-to-consumer:
Hiya nutritional supplements 15  % —  %
Other
 1  % 1  %
(1)Includes the Company’s Active Nutrition line.
NOTE K – SEGMENT INFORMATION - CONTINUED
Selected Financial Information
Financial information, presented by geographic region is listed below:
Three Months Ended
March 29,
2025		 March 30,
2024
Net sales to external customers:
Asia Pacific
Greater China $ 118,746  $ 127,615 
Southeast Asia Pacific 35,720  36,065 
North Asia 18,941  21,421 
Asia Pacific total 173,407  185,101 
Americas and Europe (1)
76,132  42,699 
Consolidated total $ 249,539  $ 227,800 
(1)Includes results of the Hiya direct-to-consumer segment.
The following table provides further information on markets representing ten percent or more of consolidated net sales and long-lived assets (excluding intangible assets), respectively:
Three Months Ended
March 29,
2025		 March 30,
2024
Net sales:
China $ 107,690  $ 115,754 
United States (1)
$ 57,923  $ 22,164 
(1)Includes results of the Hiya direct-to-consumer segment.
As of
March 29,
2025		 December 28,
2024
Long-lived assets:
United States $ 80,352  $ 81,459 
China $ 29,567  $ 29,304