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Natural Health Trends Q2 revenue falls on cautious consumer spending in China

Natural Health Trends Q2 revenue falls on cautious consumer spending in China


Overview

  • US direct-selling firm's Q2 revenue fell 23% yr/yr amid challenging operating environment

  • Company posted Q2 net loss, reversing a small profit in prior-year period

  • Board authorized resumption of share repurchases, with ~$16 mln available


Outlook

  • Company expects additional cost savings from restructuring in the second half of the yr

  • Natural Health Trends says operating environment remains challenging, especially in China

  • Company developing programs and campaigns to support members and invest in products, technology


Result Drivers

  • CHINA CONSUMER CAUTION - Co said ongoing cautious consumer spending in China weighed on revenue and operating results

  • MEMBER CONDUCT DISRUPTION - Co said violations of Hong Kong policies by certain members disrupted business and adversely affected Q2 revenue and operating results

  • RESTRUCTURING COST SAVINGS - Restructuring program generated $300,000 in operating and margin-related cost savings in Q2, per management


Company press release: ID:nGNX6MNKPF


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Sales

$7.60 mln

Q2 Loss Per Share

$0.05

Q2 Net Loss

$451,000

Q2 Gross Profit

$5.72 mln

Q2 Operating Expenses

$6.36 mln

Q2 Operating Income

-$643,000

Q2 Pretax Loss

$453,000


Reuters Recommended Reads

  • July 29 - Danone shares down as China slowdown clouds second-quarter sales beat

  • July 28 - Unilever lifts outlook on strongest volume growth in over a decade

  • July 28 - Philips falls 9% as weak orders, China concerns overshadow outlook hike


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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