USANA Health Sciences, Inc.

Good day and welcome to the USANA Health Sciences Science first quarter conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrick Richards, Executive Director of Investor Relations and Business Development. Mr. Richards, please go ahead.

Thank you. Good morning. We appreciate you joining us this morning to review our first quarter results. Today's conference call is being broadcast live via webcast and can be accessed directly from our website at ir.usana.com. Shortly following the call, a replay will be available on our website. As a reminder, during the course of this conference call, management will make forward-looking statements regarding future events or the future financial performance of our company. Those statements involve risks and uncertainties that could cause actual results to differ, perhaps materially, from the results projected in such forward-looking statements. Examples of these statements include those regarding our strategies and outlook for fiscal year 2021, as well as uncertainty related to the magnitude, scope, and duration of the impact of the COVID-19 pandemic to our business operations and financial results. We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC. I'm joined this morning by our CEO and Chairman of the Board, Kevin Guest, our President, Jim Brown, our Chief Financial Officer, Doug Hekking, as well as other executives. Yesterday after the market closed, we announced our first quarter results and posted our management commentary results and outlook document on the company's website. We'll now hear brief remarks from Kevin before opening the call for questions.

Thank you, Pat, and good morning, everyone. We appreciate you joining us to review our first quarter results. This was another excellent quarter and a great start to an exciting year for USANA. We generated double-digit sales growth in each of our regions and total customers increased both year-over-year and sequentially. This is better than expected performance and was driven by the successful execution of our first quarter initiatives and continued strong demand for our high-quality nutritional products. Accordingly, we've raised our full-year net sales and diluted EPS outlook. In addition to our financial performance, we accomplished several other key initiatives. In late March, we launched our new, much appreciated and anticipated Active Nutrition product line, and the initial reactions from our customers have been very encouraging. This product line promotes a holistic approach to healthy weight management, as well as Digestive Health, Energy and Hydration. While the initial launch of the line was limited to the United States, Canada, Mexico, Australia and New Zealand, we plan to roll the line out to additional markets as the year progresses. Additionally, we continue to execute our digital experience strategy, which entails further enhancing the overall shopping experience for our customers with a particular emphasis on the China market. These enhancements allow consumers to easily interact with USANA while sharing their experiences with others. Finally, I'll comment briefly on our updated guidance. As we noted in yesterday's release, we raised both net sales and diluted EPS guidance. While we don't provide quarterly guidance, we noted that we have planned for and are offering a worldwide short-term sales program during the second quarter. This program is designed to further reward associates for sales to new customers for a limited period of time and is being offered in each of our markets. We offered a similar short-term sales program during the third quarter of 2020, which was very successful. We anticipate a reasonably similar response in the second quarter this year. Accordingly, we expect our net sales in the second quarter to be the highest net sales quarter of the year as we wallop our strategy. In closing, we believe that we are positioned for continued growth and are confident in our overall strategies, both long-term and for 2021. With that, I'll now ask the operator to please open the lines for questions.