On August 6, Nature’s Sunshine Products (NASDAQ:NATR) held its second-quarter earnings call, and the numbers told two very different stories at once.
Net sales hit $117 million, the strongest second quarter in the company’s history
Gross margin climbed to 73.7%, the highest level in over four years. Yet management also cut its full-year sales and profit guidance, pointing to currency swings and a sudden reversal in China. The tension between a record quarter and a lowered forecast defines where this stock stands today.
Bull Case: Digital Sales Are Exploding North America digital sales grew 26% year-over-year in the quarter, and new customers acquired through the digital channel rose by the same amount. Autoship subscriptions made up 36% of website orders, while the newer social commerce channel jumped 177%, with autoship accounting for 60% of that revenue. Management noted that subscription customers carry a lifetime value more than three times higher than other buyers.