Nature’s Sunshine’s first quarter was marked by strong international performance and effective risk management amid a complex trading environment. The company’s results exceeded Wall Street’s expectations, with CEO Terrence Moorehead attributing the outperformance to robust demand in Asia Pacific and Europe. Moorehead highlighted, “Our strategy to refocus the business on high-velocity products that offer an attractive repay purchase opportunity continued to drive strong order growth, while the expansion of our Subscribe & Thrive autoship program helped improve customer activation and drive orders.” The company also increased inventory levels to hedge against evolving tariffs and supply disruptions, supporting continued product availability.
Is now the time to buy NATR? Find out in our full research report (it’s free).
Nature's Sunshine (NATR) Q1 CY2025 Highlights:
- Revenue: $113.2 million vs analyst estimates of $109.3 million (2% year-on-year growth, 3.6% beat)
- Adjusted EPS: $0.25 vs analyst estimates of $0.17 (51.5% beat)
- Adjusted EBITDA: $10.97 million vs analyst estimates of $9.75 million (9.7% margin, 12.5% beat)
- The company reconfirmed its revenue guidance for the full year of $457.5 million at the midpoint
- EBITDA guidance for the full year is $41 million at the midpoint, below analyst estimates of $42.98 million
- Operating Margin: 5.4%, up from 4.2% in the same quarter last year
- Market Capitalization: $263.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Nature's Sunshine’s Q1 Earnings Call
- Brian Holland (Davidson) asked whether revenue guidance reflected an expectation for worsening macroeconomic trends or a continuation of Q1 conditions. CFO Shane Jones said guidance was conservative, designed to encompass both ongoing instability and potential recession scenarios.
- Brian Holland (Davidson) requested clarification on tariff assumptions embedded in guidance. Jones replied that the company had been “very conservative, very thoughtful” in preparing for a range of tariff impacts, emphasizing ongoing flexibility.
- Brian Holland (Davidson) inquired about the timing and disruption risk of the new digital toolkit for practitioners. CEO Terrence Moorehead stated the launch remains on track for the second half and will not disrupt current processes, aiming instead to provide incremental benefits.
- Susan Anderson (Canaccord Genuity) asked about drivers of continued growth in Europe and Asia. Moorehead pointed to strong sales and marketing fundamentals and noted ongoing opportunities, especially in Japan, but cautioned about challenging comparisons later in the year.
- Susan Anderson (Canaccord Genuity) sought details on strategies to improve North American practitioner and retail channels. Moorehead highlighted new leadership, tools, and marketing initiatives as central to rebuilding fundamentals and supporting growth.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will monitor (1) the adoption and effectiveness of the new practitioner digital toolkit in North America, (2) the company’s ability to sustain customer and order growth in key Asia Pacific and European markets despite tougher year-over-year comparisons, and (3) the impact of ongoing tariff and macroeconomic pressures on gross margin and supply chain stability. Execution on digital and field initiatives will be critical to maintaining overall growth momentum.
Nature's Sunshine currently trades at $14.53, up from $12.46 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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