USANA Health Sciences Provides Preliminary First Quarter Net Sales and Updates Fiscal Year 2019 Outlook SALT LAKE CITY--(BUSINESS WIRE)

Health Sciences Provides Preliminary First Quarter Net Sales and Updates

Fiscal Year 2019 Outlook

SALT LAKE CITY--(BUSINESS WIRE)--April 2, 2019--USANA Health Sciences,

Inc. (NYSE: USNA) today announced preliminary first quarter net sales

and updated its outlook for fiscal year 2019. The Company anticipates

that first quarter 2019 net sales will range between $270 and $273

million, compared with $292 million in the prior-year period.

In conjunction with the Company's earnings release and Form 8-K filed on

February 5, 2019, the Company provided its full-year guidance for fiscal

year 2019 and, in doing so, disclosed that it anticipated a softer first

quarter due to limited promotional activity in each of its regions. The

lack of promotional activity during the quarter, however, had a

larger-than-expected impact on sales. Additionally, net sales in the

Company's mainland China market were unfavorably impacted by negative

media coverage of the health product industry and direct selling

industry in China throughout the quarter in connection with the 100-day

review1 of these industries by the Chinese government, as

disclosed by the Company in its Form 10-K filed with the Securities and

Exchange Commission on February 26, 2019. These events resulted in

softer-than-expected sales for the quarter and have reduced the

likelihood of the Company achieving the high end of its previously

issued full-year guidance. Consequently, the Company has updated its

full-year guidance as follows:

"We are updating our outlook for 2019 ahead of our regularly scheduled

earnings release to maintain transparency with investors," said Kevin

Guest, Chief Executive Officer. "Our operating plan for 2019 originally

called for increasing promotional activity as the year progressed. The

lack of promotional activity during the quarter, however, had a more

significant impact on our world-wide momentum than we originally

anticipated, particularly during the seasonal slow-down that we

experience in many of our markets during Chinese New Year. Additionally,

the Chinese government's 100-day review of the health product and direct

selling industries in China has been accompanied by negative media

coverage in China. The 100-day review and resulting negative media

coverage had a more significant impact on first quarter net sales in

China than we originally anticipated."

Guest continued, "We have several incentives and promotions that are set

to begin during the second quarter. We have also added a few additional

incentives and promotions during the year that are designed to drive

growth. Additionally, we expect that the 100-day review will conclude

during the second quarter, which should allow us to return to a more

typical operating environment in China. We are confident that these

initiatives, as well as our plans for the remainder of the year, will

drive sales growth during 2019, although at a lower growth rate than

previously estimated."

Final first quarter results will be released after the close of market

Tuesday, April 30, 2019. The above statements reflect the Company's

preliminary estimates and views on market trends observed in the first

quarter of 2019 and are based on information available as of the date

USANA develops and manufactures high-quality nutritional supplements,

healthy foods and personal care products that are sold directly to

Associates and Preferred Customers throughout the United States, Canada,

Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea,

Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the

United Kingdom, Thailand, France, Belgium, Colombia, Indonesia, Germany,

Spain, Romania, and Italy. More information on USANA can be found at www.usana.com.

This press release contains forward-looking statements within the

meaning of Section 27A of the Securities Act and Section 21E of the

Securities Exchange Act. Our actual results could differ materially from

those projected in these forward-looking statements, which involve a

number of risks and uncertainties, including: regulatory risk in China

associated with the Chinese government's 100-day review of the health

product and direct selling industries; continued negative media coverage

in China in connection with the Chinese government's 100-day review of

these industries; global economic conditions generally; reliance upon

our network of independent Associates; risk associated with governmental

regulation of our products, manufacturing and marketing activities;

adverse publicity risks globally; risks associated with our

international expansion and operations; and risks associated with the

internal investigation into BabyCare's operations. The contents of this

release should be considered in conjunction with the risk factors,

warnings, and cautionary statements that are contained in our most

recent filings with the Securities and Exchange Commission. The

forward-looking statements set forth our beliefs as of the date hereof.

We do not undertake any obligation to update any forward-looking

statement after the date hereof, except as required by law.

1 In January 2019, following unfavorable media coverage of

certain health product companies and direct selling companies, several

departments of the Chinese government initiated a 100-day review of

health product and direct selling companies in China. This 100-day

review requires direct-selling companies to conduct a self-assessment of

the regulatory compliance of their business and to provide information

to the government regarding the same. The 100-day review will also

entail a review of a company's regulatory compliance by various

departments of the Chinese government. During this review period, the

Chinese government has, among other things, (i) instructed direct

selling companies to not hold large distributor meetings, and (ii)

suspended its application review process for direct sales licenses and