Usana Guides 4% Sales Growth, Warns of 55%-60% Tax Rate and 48% Inventory Jump
Usana reported better-than-expected Q4 results and raised fiscal 2026 EPS guidance, forecasting 4% net sales growth at midpoint and an effective tax rate of 55%-60%. Inventories rose by $35 million (48%) to $107 million, and Rise Wellness is expected to operate near breakeven.
1. Q4 Performance and EPS Guidance
Usana delivered stronger-than-expected results in its fourth quarter, driven by disciplined cost management and stabilization in its core business. The company raised its EPS guidance for fiscal 2026, citing improved margins and the potential for accelerated top-line momentum in the back half of the year.
2. Fiscal 2026 Outlook
The company forecasts net sales growth of 4% at the midpoint for fiscal 2026, noting one fewer week of operations compared to the prior year. Management expects an effective tax rate between 55% and 60%, reflecting geographic misalignment between revenues and costs.
3. Inventory and Tax Rate Concerns
Inventories climbed by $35 million, or 48%, to $107 million at fiscal year end, raising concerns about working capital efficiency throughout fiscal 2026. The elevated tax rate guidance is attributed to mismatches in where revenue is generated versus where costs are incurred.
4. Omnichannel Strategy and Product Innovation
Usana is advancing its omnichannel platform and expanding its Hiya skincare line into Canada, the UK and Target stores. The Rise Wellness brand is projected to operate at breakeven, while ongoing product innovation and research-backed formulations aim to strengthen global brand positioning.