What Nature's Sunshine Products, Inc. told the SEC could break it.

Nature's Sunshine manufactures over 800 products from bulk herbs and other raw materials it purchases and formulates (with some products made by contract manufacturers); although raw materials are generally available from multiple suppliers and it contracts in advance for annual requirements, it expects tariffs to continue adversely affecting its costs in 2026 — including the price, availability and quality of raw materials and other ingredients — so commodity-price and tariff-driven input-cost inflation could pressure its margins.

“We expect that tariffs will continue to adversely affect our costs in 2026.”

Nature's Sunshine generates a large share of revenue outside the U.S.: most sales to independent consultants outside the United States are made in their respective local currencies and translated into U.S. dollars at average exchange rates for financial reporting, and the majority of its foreign purchases from suppliers are also in local currencies; adverse movements in foreign exchange rates therefore directly affect its reported revenue, costs and results.

“Most of our sales to independent consultants outside the United States are made in the respective local currencies. In preparing our consolidated financial statements, sales are translated into U.S. dollars using average exchange rates.”

Nature's Sunshine has material exposure to the Russia/Ukraine region: its 'Russia and Other' market (within the Europe segment, including Russia, Ukraine, Belarus and other CIS states) accounted for 12.2% of net sales in fiscal 2023, and Russia's continuing invasion of Ukraine has negatively impacted its operations there (with risks of loss of life, property destruction and lost earnings in Ukraine); the company cannot estimate future impacts given war/duration uncertainty, and sanctions or escalation could further impair this revenue.

“In fiscal 2023, operations in our Russia and Other market, a market within our Europe business segment that includes Russia, Ukraine, Belarus and other Common Independent States in the region, accounted for 12.2% of net sales.”

Nature's Sunshine is subject to extensive regulation of both its products and its distribution model: U.S. agencies including the FTC (which exercises jurisdiction over the advertising of all its products), CPSC, USDA and EPA, plus numerous state, local and foreign authorities, regulate product formulation, labeling, packaging, product claims/advertising and its direct-selling system, and it is subject to foreign tax and customs authorities; adverse regulatory actions, claims substantiation challenges, or direct-selling/MLM rule changes could restrict its operations and increase compliance costs.

“We are subject to governmental regulations pertaining to product formulation, labeling and packaging, product claims and advertising and to our direct selling system.”