Natural Health Trends (NHTC) Q3 2025 Earnings Call

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Wednesday, November 5, 2025 astatine 11:30 a.m. ET

• President — Chris Sharng

• Senior Vice President and Chief Financial Officer — Scott Davidson

Chris Sharng: Thank you, Michelle, and acknowledgment to everyone for joining america this greeting to sermon our 3rd 4th 2025 fiscal results. With maine contiguous is Scott Davidson, our Senior Vice President and Chief Financial Officer. Third 4th nett income decreased 11% to $9.5 cardinal compared to the 3rd 4th of 2024, portion orders declined 5% year-over-year. The alteration successful nett income is successful portion owed to the timing of merchandise promotion and the presale of our caller tegument attraction enactment astatine the extremity of September 2025 successful Hong Kong. The economical outlook successful our largest marketplace remains challenging successful the adjacent term.

In response, we're executing a targeted large restructuring plan, which we expect volition effect successful $1.5 cardinal annualized savings by mid-2026. Our ongoing measures see optimizing our workforce by astir 10%, reducing operating costs and cutting backmost oregon exiting definite installation leases. Also, arsenic reported past quarter, we already begun the process of transitioning U.S.-based merchandise manufacturing to beryllium person to Asia to mitigate tariff uncertainty, streamline logistics and trim costs. As portion of these restructuring initiatives, we expect to incur a onetime complaint of astir $250,000 successful the 4th fourth and expect a simplification successful our quarterly currency dividend to $0.10 per stock successful the archetypal 4th adjacent year.

These actions volition alteration investments successful caller systems and technologies, including an AI-enabled selling app and a subordinate interface concern suite arsenic good arsenic caller selling initiatives designed to thrust maturation and engagement. By aligning costs with planetary income performance, we are positioning the institution for sustainable growth, profitability and semipermanent worth creation. In mid-September, we hosted a 4-day cruise to Kagoshima Japan, recognizing our top-performing and up-and-coming members and qualifiers with immersive grooming and squad gathering experiences designed to fortify collaboration and performance. Our Greater China marketplace remains focused connected continuous grooming and enactment improvement to deepen merchandise expertise and reenforce the beardown instauration needed for sustained concern growth.

In Hong Kong, we prelaunched a caller Korean formulated moisturizing tegument attraction bid called Soo:vea successful September. The 4-step enactment features a cleanser, toner, probiotic-infused booster serum and pick plan to enactment tegument obstruction repair and present lasting hydration. Our markets and merchandise squad are moving to rotation retired these caller products to the planetary markets successful the adjacent future. To grant 10 palmy years successful Sweden, we besides hosted a celebratory in-person lawsuit successful September, unveiling [indiscernible], a constricted variation anti-aging pick formulated to hydrate, reconstruct and diminish the signs of aging.