Nature's Sunshine Products Q1 2025 Earnings Report

Nature's Sunshine Products EPS Results

• Actual EPS: $0.25
• Consensus EPS: $0.16
• Beat/Miss: Beat by +$0.09
• One Year Ago EPS: N/A

Nature's Sunshine Products Revenue Results

• Actual Revenue: $113.25 million
• Expected Revenue: $109.39 million
• Beat/Miss: Beat by +$3.86 million
• YoY Revenue Growth: N/A

Nature's Sunshine Products Announcement Details

• Quarter: Q1 2025
• Date: 5/6/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, May 6, 2025
• Conference Call Time: 5:00PM ET

Nature's Sunshine Products (NASDAQ:NATR), a natural health and wellness company, manufactures and sells nutritional and personal care products in Asia, Europe, North America, Latin America, and internationally. It offers general health products related to blood sugar support, bone health, cellular health, cognitive function, joint health, mood, sexual health, sleep, sports and energy, and vision. The company also provides immunity, cardiovascular, and digestive products; and personal care products, such as oils and lotions, aloe vera gels, herbal shampoos, herbal skin treatment, toothpaste, and skin cleansers, as well as weight management products. It offers its products under the Nature's Sunshine and Synergy WorldWide brands through a sales force of independent consultants. Nature's Sunshine Products, Inc. was founded in 1972 and is headquartered in Lehi, Utah.

Nature's Sunshine Products Q1 2025 Earnings Call Transcript

Key Takeaways

• Despite macro uncertainty and evolving tariffs, the company has increased raw ingredient inventory, enforced pricing contracts, and pre‐positioned finished goods—holding 9–12 months of high‐risk product inventory—to shield its supply chain in 2025.
• First‐quarter revenue of $113 million (up 5% on a constant‐currency basis) and adjusted EBITDA of $11 million (up 20% YoY) outperformed expectations, driven by double‐digit growth in Asia Pacific (Japan +24%, Taiwan +18%) and 9% constant‐currency growth in Europe, while North America saw digital sales jump 19%.
• The company’s 2024 impact report highlights achieving most of its sustainability goals, including 50% carbon emission reduction, 35% waste reduction, 100% solar power at its manufacturing facility, and zero waste certification at U.S. distribution centers.
• Full‐year 2025 guidance was reaffirmed with projected net sales of $445–470 million and adjusted EBITDA of $38–44 million, reflecting a conservative stance amid tariff headwinds and macroeconomic volatility.
• Nature’s Sunshine has increased its share repurchase authorization by $25 million (bringing total capacity to $33.3 million) and repurchased 38,000 shares in Q1, signaling confidence that its shares are undervalued.

Presentation

[Operator]

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's Financial Results for the First Quarter Ended 03/31/2025. Joining us today are Nature's Sunshine CEO, Terence Morehead CFO, Shane Jones and General Counsel, Nate Brower. Following the remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Brower as he reads the company's safe harbor statements within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements.

[Operator]

Nate, please go ahead.

[Nathan Brower, Executive VP, General Counsel & Secretary at Nature's Sunshine Products]

Good afternoon, and thanks for joining our conference call to discuss our first quarter twenty twenty five financial results. I'd like to remind everyone that this call is available for replay via telephonic dial ins through May 20 and via a live webcast that will be posted in the Investor Relations portion of our website at ir.naturessunshine.com. The information on this call contains forward looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will and other similar expressions. Forward looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by forward looking statements.

[Nathan Brower, Executive VP, General Counsel & Secretary at Nature's Sunshine Products]

Factors that could cause results to differ materially from those implied herein include, but are not limited to, those factors disclosed in the company's annual report on Form 10 ks under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein. Now I would like to turn the call over to the CEO of Nature's Sunshine, Terence Moorhead.

[Nathan Brower, Executive VP, General Counsel & Secretary at Nature's Sunshine Products]

Terence?

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Thank you, Nate, and good afternoon, everyone. I want to thank you for joining today's call to discuss our first quarter results. Today, I'll provide an overview of our first quarter performance and offer some insights into how the business is building momentum. From there, Shane will take you through our financials in more detail.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

To begin, we find ourselves operating in an increasingly uncertain macroeconomic environment as international trade, tariffs and consumer sentiment have become increasingly volatile. So before I dive in, I want to take a moment to share some thoughts on how we're approaching the current situation. And specifically, I'd like to talk about our plans to get ahead of the evolving tariff situation and the actions we're taking to protect the business and our customers. Despite increased market uncertainty, the underlying demand for our products remains strong and our outlook for 2025 remains positive. Importantly, we've taken some aggressive steps to minimize our exposure to the tariffs like increasing raw ingredient inventory, enforcing pricing contracts with key suppliers and moving finished goods into selected markets to avoid retaliatory tariffs.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

For our high risk products, we're holding anywhere from nine to twelve months of inventory. This gives us time to realign our supply chain, find alternative suppliers, identify product substitutes, evaluate pricing or make any other necessary adjustments. Based on our plans, we believe we're well positioned to address the threat posed by the tariffs in 2025. We continue to monitor the situation and are particularly sensitive to how consumer spending will be impacted if household budgets come under increased pressure. Our goal is to continue our positive customer growth trend.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

So we've tried to position ourselves in a way that allows us to avoid tariff related price increases that might interrupt our momentum. Now with that as a backdrop, we're very pleased to report that 2025 is off to a strong start. First quarter results beat analyst expectations as revenue came in at $113,000,000 or $115,000,000 on a constant currency basis, up 5% versus prior year. Adjusted EBITDA was also strong coming in at $11,000,000 up 20% versus prior year. The results reflect strong execution of our strategies in Asia Pacific and Europe, while leading indicators show us building momentum in North America.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

In Asia Pacific, we continued to benefit from the strategic changes that we made to our marketing mix as first quarter revenue increased 10% versus prior year on a local currency basis. Once again, Japan and Taiwan were standout performers as sales increased twenty four percent and eighteen percent respectively on a local currency basis. Our strategy to refocus the business on high velocity products that offer an attractive repeat purchase opportunity continued to drive strong order growth, while the expansion of our Subscribe and Thrive Autoship program helped improve customer activation and drive orders. Overall, we remain very encouraged by the strength of our business in the region. In Europe, our performance continued to strengthen as sales increased 9% on a constant currency basis.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

The strong performance was primarily driven by Central Europe, which was up 16% in local currency as we continued to see positive results from the team's disciplined approach and strong execution. An intensified focus on the power line continued to drive sales and customer spend while our expansion into the Baltic States helped increase customer activation. Moving forward, we expect to see continued positive momentum in the region. In North America, sales were down 4% on a very difficult comparison versus prior year. Having said that, Q1 performance was slightly ahead of expectations as we saw our third consecutive quarter of sequential order growth, a positive sign that we're building momentum.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Additionally, our nutritional health practitioners, specialty retailers and affiliates continued to show improved fundamentals in response to some organizational changes that were put in place to improve touch management, discipline and support. We also continued to build our digital capabilities to attract and retain customers. In the first quarter, digital sales increased 19% versus prior year, which is more than double the supplement industry's digital growth rate. So we continue to gain share in this segment and are on track with our strategy. We're also encouraged by our Subscribe and Thrive Autoship program that represents approximately 26% of total sales and about 45% of DTC sales.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

We expect to see continued growth from Subscribe and Thrive as it continues to be the most attractive way to buy our products. Moving forward, we believe there is significant untapped potential in North America and expect to continue to build momentum in 2025. Finally, in March, we launched our 2024 impact report that outlines our ongoing commitment to sustainability and transparency. Our customers understand and appreciate the value sustainability initiatives offer and they count on us to bring them the best, most reliable products in the world. To live up to their expectations, we set bold sustainability goals that include everything from reducing our carbon emissions by 50% to cutting waste by 35%, from utilizing 100% solar power at our manufacturing facility to achieving zero waste certification at our U.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

S. Distribution centers and delivering zero waste to landfill in The U. S. I'm pleased to share that we achieved most of the sustainability goals we established, which is a testament to the strength of our culture and our commitment to responsible business practices. Of course, we look forward to doing more to proactively impact our planet in the future.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

In closing, as we look ahead to the balance of 2025, we're encouraged by the strength of our first quarter results and remain confident in the underlying fundamentals of the business. Our investments in field activation, product marketing and digital have been instrumental in strengthening demand for our products as evidenced by our double digit growth in Asia Pacific, exceptional growth in Europe and double digit customer growth in North America. We are excited about the opportunities in front of us and we will continue to drive operational improvements and capitalize on emerging opportunities to deliver long term value for our shareholders. With that, I'd like to turn the call over to our Chief Financial Officer, Shane Jones. Shane?

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Thank you, Terrence. Let's talk about results in more detail. Net sales in the first quarter were $113,200,000 compared to $111,000,000 in the year ago quarter, a 2% increase versus the prior year or a 5% increase excluding the impact of foreign exchange rates. As Terence discussed, this was driven by strong performance across both Asia Pacific and Europe. Looking at sales by market in Q1, I'll start with APAC.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

In Asia Pacific, we reported growth of 5% to $48,700,000 or up 10% when excluding the impact of foreign exchange. This was driven by a very strong growth in Taiwan and Japan where sales on a local currency basis grew 1824% respectively in Q1. The strategies we implemented last year continued to produce the results intended yielding growth in both customers and transactions. We're especially excited about the momentum that we see in Japan, where new customer growth has exceeded 20 for three straight quarters now. Sales in Europe during Q1 increased 8% on a reported basis and 9% on a local currency basis.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Excellent field execution combined with the strong adoption of our power line products and continued expansion in The Baltics drove robust growth in Central Europe where sales increased 15%. We're also seeing some encouraging signs in Eastern Europe where sales grew 8% year over year during Q1. Looking at our North America business, sales declined 4% on both a reported and local currency basis. The sales decline in North America is reflective of a difficult year over year comp as Q1 twenty twenty four was a strong quarter with over 5% growth. In addition to that, we continue to see increased uncertainty in the North America macroeconomic environment, which is impacting consumer sentiment.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Despite that headwind, we see encouraging signs in both our digital and core businesses. The digital business grew 19% in Q1 showing two points of sequential acceleration versus Q4. This growth was driven by a 30% increase in DTC customers along with increases in ordering accounts, retention and Amazon sales. In addition to this strength, we are also seeing stabilization and early signs of improvement in our core business, which should lead to sequential improvement in sales trends during Q2 and Q3. The combination of these factors increases our confidence that we're moving in the right direction as we work to stabilize and reaccelerate growth in the region.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Gross margin in the first quarter increased 90 basis points to 72.1% compared to a year ago, driven by the results of our gross margin initiatives combined with disciplined cost management. Q1 gross margin results also showed sequential improvement from Q4, reflecting steady margin improvement. We expect that trend to continue in coming quarters as we realize savings from our initiatives and as the negative impact of foreign exchange rates diminishes. This improvement will be despite negative headwinds caused by recent tariff announcements and volatility due to the rapidly evolving trade landscape. We have a diverse supply chain and have already taken measures to prepare for and mitigate the impacts of recent trade policy changes.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Therefore, we believe we are well positioned to be able to adapt and adjust as necessary and expect minimal impact to gross margin in 2025. Volume incentives as a percentage of net sales were 30.8% compared to 30.2% in the year ago quarter. The increase was primarily due to changes in market mix. Selling, general and administrative expenses during the first quarter were $40,600,000 compared to $40,800,000 in the year ago quarter. The decrease was due to our cost out initiatives and strong cost control.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

As a percentage of net sales, SG and A expenses decreased to 35.8% in the first quarter compared to 36.7% a year ago. We continue to scrutinize costs closely and ensure that investments have a strong return on investment. As such, we expect SG and A to remain near these levels as we progress through the year. Operating income increased to $6,200,000 or 5.4 percent of net sales compared to $4,600,000 or 4.2% of net sales in the year ago quarter. GAAP net income attributable to common shareholders for the first quarter was $4,700,000 or $0.25 per diluted common share compared to net income of $2,300,000 or $0.12 per diluted share in the year ago quarter.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Adjusted EBITDA, as defined in our earnings release, increased 20% to $11,000,000 compared to $9,200,000 in the year ago quarter. Our balance sheet remains clean with cash and cash equivalents of $86,500,000 and zero debt. Inventory increased to $64,900,000 at the end of the first quarter, which is $5,500,000 more than we ended 2024. We made a conscious decision to increase inventory levels of both raw materials and finished goods to support service levels and in preparation for tariff related costs and delays. Net cash provided by operating activities was $2,600,000 compared to $2,200,000 in the prior year period.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

We repurchased 38,000 shares for approximately $500,000 during the quarter ended 03/31/2025, with $8,300,000 remaining on our previous $30,000,000 share repurchase program. As announced today, the company's Board of Directors increased our share repurchase authority by an additional $25,000,000 bringing the total to $33,300,000 We believe that our shares are substantially undervalued and plan to leverage this increased buyback authority to take advantage of the current opportunity. Looking beyond share repurchases, our healthy capital allocation structure positions us well to continue our digital transformation and other strategic initiatives. Now turning to our 2025 outlook. We are reiterating our previous guidance, expecting full year 2025 net sales to range between $445,000,000 and $470,000,000 inclusive of an estimated $5,000,000 headwind to growth due to foreign exchange, thereby implying year over year growth net of foreign exchange between negative 15%.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

This guidance includes the assumption of a challenged macroeconomic environment both in The United States and globally. It also reflects a conservative stance as we assess the impact of tariffs on raw materials, supply chain disruptions and the effect on consumer behavior. For adjusted EBITDA, we continue to expect to range between $38,000,000 and $44,000,000 This assumes the gross margin will be flat to modestly higher in 2025 and that quarterly SG and A will be 40,000,000 to $42,000,000 Overall, we believe that the company is very well positioned to capture current market opportunities, while navigating and adjusting to shifting trade policy and macroeconomic uncertainty. Our strategic initiatives are yielding good results and our cost out measures have made us more streamlined and more efficient. This work combined with our best in class product portfolio, passionate distributors and loyal customer base position us well for significant future growth and continued profitability despite potential short term headwinds.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Now I will turn the time back to the operator.

[Operator]

Thank you. Our first question will come from Brian Holland from Davidson. Please proceed.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Thanks. Good afternoon and congratulations on the strong start to the year.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Thanks Brian.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

I guess, yes, two things to start with, excuse me, guidance. To clarify this, how did 1Q come in vis a vis internal expectations?

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

We

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

were slightly ahead of our internal expectations for the quarter.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Okay, perfect. So just maybe a little bit more specificity around thinking about guidance over the balance of the year, probably to discern how much of what we're seeing here in the maintaining of guidance is a reflection of, hey, it's only one quarter versus trying to signal forthcoming pressures or headwinds, whether it's tariffs or whatever. So I guess what I'm getting at is, can you assume at the midpoint of guidance that the macro backdrop worsens from what we saw in 1Q over the balance of the year or sustains from where we've been over the last three months?

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Let's take that, Shane.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Yes.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Thanks for the question, Brian. Yes. So we're very encouraged by the way that the year has started. We had a good Q1. Our business continues to run very well.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

We just noticed an uncertain environment. And so therefore, we're taking a conservative stance. As you think about the guidance that we've given, really the midpoint of the guidance would say that we continue to have some macroeconomic instability, that we continue to see some issues with tariffs and we continue to see that impact not only United States but other parts of the country. The lower end of that guidance would say we're really in a recession type environment where things get very bad. And then the upper end would say that we continue to see the things that we've seen in Q1.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

We continue to see good results and we get to that number.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Helpful.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

That answer your question?

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Yes. No, that's perfect. Thank you. And one other follow-up on the guidance. Relative to whatever may have been factored into the initial guide for tariffs, if anything, going back a couple of months, based on what's known today, any changes there for better or worse with respect to other than obviously some of the pauses that have been put into place?

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Anything look better or worse relative to what might have been embedded in initial expectations?

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

That's a rapidly environment, obviously. Some day to day, obviously, things can change all the time. So I can't say that nothing has changed. But at the same time, when we issued this guidance last quarter, we were very conservative, very thoughtful about making sure that it would encompass all situations that could occur. I would say, I would reiterate that again to say, we are trying to encompass things that we may not even know at this point, as far as impacts to the economy from tariffs.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

And I think what we would say is we've tried to do our homework on our end to make sure that we've done everything that we can do to prepare to offset as Jane has mentioned earlier, the potential impact of tariffs. So we've tried to be prepared, we've tried to buy ourselves some time so that we can react to things across our supply chain. But it's highly uncertain volatile market, but we've done everything we think we can to protect ourselves in 2025.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

I'm tired of answering the question.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Thought it'd be fun to see someone else

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

try to

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

take a swing at it, appreciate the color, very helpful.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

I hear you.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Switching maybe strategically, curious about the new digital toolkit. Just checking to see if that's still on track for launch in North America in the second half of 'twenty five. And then maybe to what extent have your practitioners been able to test, get comfortable with the toolkit? And maybe just, this should be a fairly significant rollout. So anything else you're doing to minimize order disruption during the introductory phase?

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Yes, we do not anticipate any order disruption. This would be an incremental opportunity for them. So this won't interrupt any of the processes that practitioners or retailers who want to use the tools. It won't disrupt them in any way. We are still on track for a kind of back half of the year launch and in preparation for that, we will be getting it in people's hands.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

So right now it's still kind of in our hands internally. We have some processes to go through before we can kind of start showing it and getting it out to people but on a larger scale. So, but we're very optimistic and very pleased about the potential of really getting some powerful tools in our people's hands that will allow them to manage their customer bases better and hopefully attract new customers to their businesses as well.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Appreciate the color, Terence. I'll hop back in the queue.

[Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson]

Thank you.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Thank you.

[Operator]

Our next question comes from the line of Susan Anderson from Canaccord Genuity. Your line is open.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Good evening.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Hi, Susan.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Thanks for taking

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

the questions. How's it going?

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Great. How are you doing today?

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Good. Not too bad. If you could talk a little bit about Europe and Asia, obviously, seeing some very strong performance there. I mean, I think Europe's been growing for several quarters now and Asia kind of just right behind them. So I guess, how are you thinking about kind of the tailwinds there or the drivers there to kind of continue that growth as we look forward?

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Do you still see a lot of kind of market share or customers that you can kind of grab in those markets to continue to drive that growth? Thanks.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

I think the market opportunities continue to be there for us. The businesses in both of those two regions are driven by very strong fundamentals across sales and marketing. So we feel very good about that. We feel confident that when we go to market with either new products or we want to engage with kind of even to penetrate further with existing products, we have a powerful kind of approach to the market. So I think we feel good about both of those businesses and the opportunities are still there.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Having said that, in APAC, they'll be going up in the back half of the year against some of their largest sales. And so right now, they've got great runway ahead of them. The challenge is going to be for them to keep that momentum up in the back half of the year. But again, it's a very strong team, very strong kind of opportunity for us. Shane, do have any additional thoughts kind of on that one?

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Yes. No, as we look at places like Japan, we're really encouraged. As I mentioned, we see new customer growth of over 20% each quarter for three consecutive quarters. That's our best leading indicator for the future. So have a lot of confidence especially in Japan, we should see that continue.

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

But to Terrence's point, if you look at the comps in Q3 and Q4 for both of those, we had amazing results last year that they'll have to lap. So it's difficult to say that we're going to continue at 20% clip, in those markets.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

But the good news again is the growth we're seeing is based on orders, it's based on customers, that's sustainable. So we're not just trying to sell more products into the same people. So again, we feel good about the business.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Okay. Great. Yes, that's some really good results. And then maybe if you could just talk about North America and, I guess, what do you think needs the digital sales are great. Obviously, it's nice to see that 19% growth.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

In terms of the practitioners and the retailers, how are you thinking about kind of getting that channel back on track in North America? Thanks.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Yeah, Duane, a couple of things. I think kind of first and foremost, it is about focus, and building out the fundamentals there as I had mentioned when I was talking. So we put some new a new team in place. There's new leadership, not just at the top, but kind of all the way down throughout organization. So, I think we've got a great team on the ground there to help build out the fundamentals, put some discipline in place, build out kind of stronger support as well.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

I think a big piece of them turning the corner is going to be, kind of getting them the right tools in place, also. So again, in the back half of the year, they're going to have a completely new toolkit that will allow them to access consumers better, talk to their consumers better, access social media much more effectively. So really, it's a combination of building out the field fundamentals with getting the right kind of tools in their hand and then, of course, getting our marketing proposition which is kind of really strengthening getting that right as well. So it's kind of a combination of those three things I think will really help them kind of catch up to the type of growth we're seeing in on the digital side of the business and really start to be complementary.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Okay, great. And then if I could just ask a couple of model questions here. I guess, how should we think about the balance between gross margin and then op expenses to kind of get to your EBITDA for the rest of the year? And is there any cadences we should be thinking about as well?

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Jane, do want to grab that?

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

Yes. So for gross margin, we should see modest improvement as we progress through the year. Not substantial, but modest improvement. So we should see a slight build each quarter, but modest. And then on our SG and A side, we expect between 40,000,000 and $42,000,000 of SG and A each quarter.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

And then also just any timing on the new share repurchase program or cadence of repurchases or anything like that we should take into consideration?

[Shane Jones, EVP & CFO at Nature's Sunshine Products]

We're going to take advantage of market opportunities and we believe we're very undervalued at this point in time. So we're going to buy aggressively when the opportunity presents itself.

[Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets]

Okay. Perfect. That sounds good. Thanks so much. Good luck for the rest of the year.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Thank you. Thanks, Susan.

[Operator]

At this time, this concludes our question and answer session. I would now like to turn the call back to Mr. Moorhead for closing remarks.

[Terrence Moorehead, President, CEO & Director at Nature's Sunshine Products]

Okay. Thank you, Chloe. We'd like to thank everyone for listening to today's call, and we look forward to speaking with you when we report our second quarter twenty twenty five results. And again, thanks for joining us, and take care.

[Operator]

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Nathan Brower, Executive VP, General Counsel & Secretary
• Terrence Moorehead, President, CEO & Director
• Shane Jones, EVP & CFO

Analysts

• Brian Holland, MD and Research Analyst - Food & Beverage at D.A. Davidson
• Susan Anderson, Managing Director & Senior Analyst at Canaccord Genuity - Global Capital Markets