Nature's Sunshine Cuts 2026 Sales Outlook After Growth Cools

The Tip Desk · October 17, 2026 · 3 min read

Second-quarter net sales were $117.0 million, up 2%, as the company lowered full-year sales guidance to $490 million to $500 million.

Nature’s Sunshine Products (NATR), a global marketer of herbal and nutritional supplements, reported second-quarter net sales of $117.0 million, up 2% from a year earlier and 4% in constant currency, a slower pace than the 9% year-over-year increase posted in the first quarter.

The herbal-supplement maker said the slowdown reflected a stronger U.S. dollar and recent softness in China, and it lowered full-year 2026 net sales guidance to a range of $490 million to $500 million from $500 million to $515 million. Adjusted EBITDA guidance for the full year was cut to $48 million to $52 million from $50 million to $54 million.

Gross profit margin expanded 194 basis points to 73.7% from 71.7% a year earlier, after a 116-basis-point increase to 73.2% in the first quarter. The company said the latest expansion was driven by cost-savings initiatives and market mix. Operating income rose to $5.5 million, or 4.7% of net sales, from $4.3 million, or 3.7% of sales, a year earlier.

Adjusted EBITDA was $11.3 million, unchanged from $11.3 million a year earlier, after a 33% increase to $14.6 million in the first quarter. GAAP net income attributable to common shareholders fell to $3.5 million, or $0.19 a share, from $5.3 million, or $0.28 a share, a year earlier. Other income (expense), net, was a $0.1 million expense versus $3.3 million of income a year earlier, primarily consisting of foreign-exchange losses in Asia, partially offset by foreign-exchange gains in Europe and Latin America.

Asia, the largest segment, posted net sales of $53.0 million, up 0.6% from $52.7 million a year earlier, or 5.3% excluding currency, after 7.3% growth in the first quarter. Europe net sales were $22.7 million, up 4.4% from $21.7 million a year earlier, or 3.7% excluding currency. North America net sales were $36.0 million, up 2.8% from $35.0 million a year earlier. Digital sales in North America increased 26%. Latin America and Other net sales were $5.3 million, down 0.5% from $5.4 million a year earlier, or down 3.7% excluding currency.

Chief Executive Ken Romanzi said constant-currency sales growth of 4% spanned nearly all geographic regions, with 5% growth in Asia Pacific on consultant engagement and North America digital sales up 26% on new and returning customers. He said the quarter marked the start of investments in the company’s Vision for Growth, including expansion of the digital business, enhanced digital tools for consultants, deeper penetration of existing markets, and entry into new markets.

Volume incentives were 30.6% of net sales, compared with 29.9% a year earlier. The increase was primarily due to the timing of promotional incentives and market mix. Selling, general and administrative expenses were $44.9 million, or 38.4% of net sales, compared with $43.7 million, or 38.1% of sales, a year earlier. The increase was primarily related to consultant events and variable selling expenses, partially offset by compensation costs.

For the six months ended June 30, 2026, net cash used by operating activities was $1.0 million, compared with $6.9 million provided in the prior-year period. Capital expenditures totaled $5.3 million, compared with $2.5 million a year earlier. The company repurchased 113,000 shares for $2.6 million, or $22.55 a share. Cash and cash equivalents were $82.5 million at June 30, 2026, with zero debt.

Nature’s Sunshine appointed Ruth Perkins as Executive Vice President and Chief Financial Officer, effective September 1, 2026. Perkins, who most recently led global value-chain finance at The Estée Lauder Companies, will head the global finance organization.