Nature's Sunshine Cuts 2026 Sales Outlook After Asia Slide

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter net sales fell 9% to $116.6 million as Asia dropped 14.9% and the company lowered full-year sales guidance to $460 million–$470 million.

Nature’s Sunshine Products, Inc. (NATR), a global manufacturer of herbal and nutritional supplements, reported third-quarter net sales of $116.6 million, down 9% from $128.3 million a year earlier and 7% in constant currency, reversing the 2% year-over-year increase to $117.0 million in the second quarter.

Chief Executive Ken Romanzi said the results were disappointing and fell short of expectations, pointing to challenges in China and in the company’s Digital business.

Asia, the largest reportable region, was the source of the reversal. Net sales there dropped 14.9% to $55.1 million from $64.7 million a year earlier, or 11.2% excluding currency, after 0.6% growth to $53.0 million in the second quarter. The company said operational disruptions in China had a more significant impact on its consultant leadership base than it initially anticipated and that it had already begun rebuilding that base.

North America net sales declined 6.1% to $34.0 million from $36.2 million a year earlier, after 2.8% growth to $36.0 million in the second quarter. Romanzi said that after several quarters of exceptional growth in the Digital business, the company is continuing to invest in that part of the portfolio to position it for the next phase of growth.

Europe net sales were essentially unchanged at $22.1 million versus $22.1 million a year earlier, down 0.1% as reported and up 0.9% excluding currency. Latin America and Other net sales rose 3.4% to $5.5 million from $5.3 million a year earlier, down 0.1% excluding currency.

Gross profit margin compressed 42 basis points to 72.9% from 73.3% a year earlier, after a 194-basis-point increase to 73.7% in the second quarter. The company attributed the year-over-year decline primarily to unfavorable foreign exchange. Volume incentives as a percentage of net sales rose to 32.0% from 30.7% a year earlier; the company cited timing of promotional incentives and market mix.

Selling, general and administrative expenses were $42.3 million, down from $45.7 million a year earlier, which the company said was primarily related to a reduction in variable selling expenses and cost management. As a percentage of net sales, SG&A was 36.3% versus 35.6% a year earlier. Operating income declined to $5.3 million, or 4.5% of net sales, from $9.0 million, or 7.0% of net sales, a year earlier.

GAAP net income attributable to common shareholders fell to $1.9 million, or $0.11 a share, from $5.3 million, or $0.30 a share, a year earlier. Adjusted EBITDA declined to $11.1 million from $15.2 million a year earlier. As a result of the December 2025 purchase of noncontrolling interests, there was no net income attributable to NSP China in the third quarter of 2026, compared with $1.0 million, or $0.06 a share, a year earlier.

For the nine months ended September 30, 2026, net cash provided by operating activities was $9.7 million, compared with $25.4 million in the prior-year period. Capital expenditures totaled $6.8 million. The company repurchased 345,000 shares at a total cost of $6.1 million, or $17.66 a share. Cash and cash equivalents were $89.4 million as of September 30, 2026, with zero debt.

Reflecting a stronger U.S. dollar and recent challenges in the China market, Nature’s Sunshine now expects full-year 2026 net sales to range between $460 million and $470 million, down from a prior range of $490 million and $500 million. Adjusted EBITDA is now expected to range between $44 million and $48 million, down from $48 million and $52 million. Romanzi said confidence in the long-term potential of Nature’s Sunshine remains strong.