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: Usana stock falls after slow sales during COVID-19 force cut to outlook

Usana Health Sciences Inc. shares fell in the extended session Thursday after the nutritional supplements company said it expects a weak quarter and cut its outlook for the year.

Usana
USNA,
-0.06%

shares dropped 4% after hours, following a 0.1% decline in the regular session to close at $87.46.

“Our sales results for the third quarter have been softer than we anticipated, largely because of increased disruptions and lockdowns in several of our markets due to the escalation of the COVID-19 pandemic,” said Kevin Guest, Usana chief executive and chairman, in a statement.

“These disruptions have affected our customers and salesforce and, in some cases, our ability to operate and ship products,” Guest said.

The company expects earnings between $1.28 and $1.33 a share on revenue of $265 million to $270 million. Analysts surveyed by FactSet had forecast $1.44 a share on revenue of $303.2 million.

Usana also cut its outlook for the year to earnings between $5.80 and $6.00 a share on revenue of $1.18 billion to $1.20 billion from a previous forecast of $6.15 to $6.50 a share on revenue of $1.24 billion to $1.28 billion. Analysts expected $6.63 a share on revenue of $1.26 billion.

Also, Usana said its board increased its share buyback authorization to $150 million, which includes the $14 million of authorization left on its previous buyback plan.

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