Nature’s Sunshine (NATR) Lays Out a $1B Growth Target Amid Guidance Cuts

On August 6, Nature's Sunshine Products (NATR) reported its strongest second quarter ever, with net sales reaching $117 million and a gross margin of 73.7%. However, the company simultaneously lowered its full-year sales and profit guidance due to currency fluctuations and a decline in China sales. North America digital sales grew 26% year-over-year, with new customers acquired through the digital channel increasing by the same amount.

Autoship subscriptions made up 36% of website orders, while social commerce jumped 177%. The digital business is on track to reach $50 million in sales by the end of 2026, just five years after its launch. Growth outside China, including Japan and Europe, also showed positive trends. Ruth Perkins, a finance veteran, and Janine Weber, a skincare brand expert, joined the company as CFO and North America President, respectively.

Despite these accomplishments, China sales fell 20% in the quarter, leading to a revised full-year guidance range of $490 million to $500 million and EBITDA guidance of $48 million to $52 million. SG&A expenses rose to $44.9 million, with management expecting it to reach between $45 million and $47 million for the remainder of the year.

The company acknowledged the challenges faced by its North American direct selling business, which is set for a major overhaul in early 2027. The stock's forward price-to-earnings ratio sits at 13.37, a modest multiple for a company aiming to double its sales. While NATR posted its best second quarter ever, its ambitious growth target is built on a weaker foundation than initially anticipated.