USANA targets 4% sales growth in 2026 despite tax and margin hurdles

USANA Health Sciences has outlined its financial and strategic plans for fiscal 2026. The company expects a 4% increase in news sales but warns of high tax rates and margin pressures. A shift toward retail partnerships and new product launches will shape its future direction.

The company's effective tax rate for 2026 is forecasted to remain high, between 55% and 60%. This stems from a mismatch between where revenues are generated and where costs are incurred. Despite global revenue holding steady at around $900 million, USANA's presence in the US retail supplement market remains minimal, with less than 0.5% share over the past five years.

Inventory levels rose sharply in 2025, climbing by $35 million to reach $107 million. The bulk of this increase—80%—was tied to investments in Rise Wellness and HYA, two brands set to drive future news. These investments will support new product launches in major retail outlets, part of a broader push to expand beyond direct selling.

USANA also faces ongoing margin pressures as it scales lower-margin businesses. To stay competitive, the company is prioritising technology upgrades and greater use of AI. The goal is to transition into a science-driven, omnichannel nutrition business, reducing reliance on its traditional direct-selling model.

The company's 2026 outlook includes modest sales growth but highlights challenges like high taxes and tight margins. Success will depend on expanding retail partnerships and launching new products. Rise Wellness and HYA are expected to play a central role in this strategy.