USANA Health Sciences, Inc. (NYSE: USNA) announced financial results for its fiscal first quarter ended March 31, 2018.
Financial Performance
For the first quarter of 2018, net sales were $292.0 million compared with $255.3 million in the prior-year period, or a 14.4% increase year-over-year.
Favorable currency exchange rates positively impacted net sales by $16.4 million for the quarter. Targeted product promotions offered by the Company during the quarter contributed approximately $11 million to net sales and the Company’s launch of its new skincare line, Celavive, also contributed approximately $9 million in incremental sales for the quarter.
The Company’s total number of active Customers increased 1.9% year-over-year to 585,000.
The Company reported net earnings for the first quarter of $28.9 million, compared with net earnings of $21.4 million reported in the prior-year period. Earnings per diluted share increased to $1.19 per diluted share, an increase of 38.4% on a year-over-year basis.
The increase in net earnings was due primarily to higher net sales, lower relative operating expenses and a lower effective tax rate of 34.2% compared to 36% during the prior year period. Costs related to China and the Company’s internal investigation into its China operations were nominal during the first quarter of 2018 as compared to approximately $2.4 million, after tax, during the prior year period.
“We are off to a solid start to the year as