Exhibit 99.1

Natural Health Trends Reports Second Quarter 2017 Financial Results

Expanded operating income margin to 25%
Increased quarterly dividend 10% to $0.11 per share
Declared special dividend of $0.25 per share
Announced official market entry into Peru
Received preliminary approval for Malaysian Direct Selling License

LOS ANGELES – August 2, 2017 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and quality of life products under the NHT Global brand, today announced its financial results for the quarter ended June 30, 2017.

Second Quarter 2017 Financial Highlights

Total revenue decreased 36% to $51.5 million, compared to $80.4 million in the second quarter of 2016.

Revenue from the Company’s Hong Kong operations, which represented 89% of total revenue, decreased 38% to $45.7 million, compared to $73.3 million in the second quarter of 2016.

Revenue outside of Hong Kong decreased 18% to $5.8 million, compared to $7.1 million in the second quarter of 2016, and was partly mitigated by an increase in Europe of 256% year-over-year.

Operating income decreased 14% to $12.9 million, compared to $14.9 million in the second quarter of 2016. As a percent of total revenue, operating income was 25%, compared to 19% in the second quarter of 2016.

Net income was $10.3 million, or $0.91 per diluted share, compared to $12.2 million, or $1.07 per diluted share, in the second quarter of 2016.

The number of Active Members1 decreased 6% to 107,290 at June 30, 2017, compared to 113,710 at March 31, 2017, and decreased 15% compared to 126,440 at June 30, 2016.

1 
Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve month period.


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Year-to-Date 2017 Financial Highlights

Total revenue decreased 28% to $111.3 million, compared to $154.7 million in the first six months of 2016.

Operating income decreased 11% to $25.9 million, compared to $28.9 million in the first six months of 2016. As a percent of total revenue, operating income was 23%, compared to 19% in the first six months of 2016.

Net income was $20.7 million, or $1.84 per diluted share, compared to $23.5 million, or $2.03 per diluted share, in the first six months of 2016.

Management Commentary

“Our revenue for the second quarter declined by 14% from the prior quarter primarily due to the slowdown we have been experiencing in our Asian markets since the third quarter of 2016,” commented Chris Sharng, President of Natural Health Trends Corp. “Further, the second quarter of 2016 presented a challenging year-over-year comparison due to record product orders in anticipation of a significant product price increase effective last June. Partially offsetting the year-over-year decrease in net sales was strength in Europe, our market opening in Peru and a positive response to our most recent product introductions.”

Mr. Sharng further commented, “We are pleased to announce we received preliminary approval for a direct selling license in Malaysia, which correlates perfectly with our summer Ambassador Academy event we have been actively preparing for in Kuala Lumpur. We also recently celebrated our grand opening in Peru and received registration approval for key products, enabling us to generate nearly $500 thousand in product orders during the quarter. In addition, we are working to reinvigorate momentum in Asia by enhancing our incentive programs and adjusting our bonus and reward programs to provide more resources to the most productive and up-and-coming members. While it will take time to restore our Asian markets to growth and to train our leaders to navigate the challenges involved with operating through a slowdown, we believe the measures we have taken to enhance our matching bonus and ease rank advancement will help attract, motivate and retain a strong member base.”

Balance Sheet and Cash Flow

Net cash provided by operating activities in the second quarter of 2017 was $6.8 million, compared to $16.6 million in the second quarter of 2016. For the first six months of 2017, net cash provided by operating activities was $20.6 million, compared to $30.4 million in the first six months of 2016.

On July 31, 2017, the Company's Board of Directors declared a quarterly dividend of $0.11 per share on outstanding common stock, which represents a 10% increase over the prior quarter dividend, as well as a special cash dividend of $0.25 per share on outstanding common stock. The dividends will be payable on August 31, 2017 to stockholders of record as of August 21, 2017.


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Second Quarter 2017 Financial Results Conference Call

Management will host a conference call to discuss the second quarter 2017 financial results today, Wednesday, August 2, 2017 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Wednesday, August 2, 2017
Time:
11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time
Dial-in:
1-877-407-0789 (Domestic)
1-201-689-8562 (International)
Conference ID:
13664982
Webcast:
http://public.viavid.com/index.php?id=125041

For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on August 2, 2017 through 11:59 p.m. Eastern Time on August 16, 2017 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13664982.

About Natural Health Trends Corp.

Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.

Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption Risk Factors in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on March 10, 2017 with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

CONTACTS:

Company Contact:
Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel: 310-541-0888
scott.davidson@nhtglobal.com
         
Investors:
ADDO Investor Relations
Tel: 310-829-5400
investor.relations@nhtglobal.com

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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
June 30, 2017
 
December 31, 2016
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
136,261

 
$
125,921

Inventories
9,804

 
11,257

Other current assets
3,638

 
4,066

Total current assets
149,703

 
141,244

Property and equipment, net
1,292

 
1,388

Goodwill
1,764

 
1,764

Restricted cash
3,039

 
2,963

Other assets
768

 
692

Total assets
$
156,566

 
$
148,051

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
2,371

 
$
2,145

Income taxes payable
4,971

 
663

Accrued commissions
12,666

 
13,611

Other accrued expenses
10,366

 
14,989

Deferred revenue
3,994

 
4,948

Amounts held in eWallets
18,713

 
19,165

Other current liabilities
1,622

 
1,633

Total current liabilities
54,703

 
57,154

Deferred tax liability
285

 
268

Long-term incentive
7,179

 
8,190

Total liabilities
62,167

 
65,612

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock

 

Common stock
13

 
13

Additional paid-in capital
86,665

 
86,574

Retained earnings
49,198

 
38,548

Accumulated other comprehensive loss
(907
)
 
(807
)
Treasury stock, at cost
(40,570
)
 
(41,889
)
Total stockholders’ equity
94,399

 
82,439

Total liabilities and stockholders’ equity
$
156,566

 
$
148,051



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
Net sales
$
51,465

 
$
80,391

 
$
111,339

 
$
154,737

Cost of sales
9,793

 
15,059

 
21,038

 
29,339

Gross profit
41,672

 
65,332

 
90,301

 
125,398

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
22,075

 
37,883

 
48,040

 
72,969

Selling, general and administrative expenses
6,590

 
12,431

 
16,126

 
23,335

Depreciation and amortization
140

 
91

 
276

 
180

Total operating expenses
28,805

 
50,405

 
64,442

 
96,484

Income from operations
12,867

 
14,927

 
25,859

 
28,914

Other income (expense), net
80

 
16

 
236

 
(8
)
Income before income taxes
12,947

 
14,943

 
26,095

 
28,906

Income tax provision
2,644

 
2,742

 
5,367

 
5,425

Net income
$
10,303

 
$
12,201

 
$
20,728

 
$
23,481

Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.92

 
$
1.08

 
$
1.84

 
$
2.03

Diluted
$
0.91

 
$
1.07

 
$
1.84

 
$
2.03

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
11,243

 
11,333

 
11,236

 
11,553

Diluted
11,274

 
11,359

 
11,264

 
11,579

Cash dividends declared per common share
$
0.45

 
$
0.06

 
$
0.89

 
$
0.11



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Six Months Ended June 30,
 
2017
 
2016
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
20,728

 
$
23,481

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
276

 
180

Stock-based compensation
17

 
84

Cumulative translation adjustment realized in net income
(258
)
 
132

Changes in assets and liabilities:
 
 
 
Inventories
1,388

 
(1,865
)
Other current assets
489

 
(612
)
Other assets
(58
)
 
2

Accounts payable
226

 
665

Income taxes payable
4,304

 
487

Accrued commissions
(915
)
 
(989
)
Other accrued expenses
(3,229
)
 
2,597

Deferred revenue
(939
)
 
4,816

Amounts held in eWallets
(327
)
 
1,759

Other current liabilities
(24
)
 
203

Long-term incentive
(1,049
)
 
(506
)
Net cash provided by operating activities
20,629

 
30,434

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(170
)
 
(524
)
Net cash used in investing activities
(170
)
 
(524
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of common stock

 
(23,704
)
Dividends paid
(10,078
)
 
(1,262
)
Net cash used in financing activities
(10,078
)
 
(24,966
)
Effect of exchange rates on cash and cash equivalents
(41
)
 
(209
)
Net increase in cash and cash equivalents
10,340

 
4,735

CASH AND CASH EQUIVALENTS, beginning of period
125,921

 
104,914

CASH AND CASH EQUIVALENTS, end of period
$
136,261

 
$
109,649

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Issuance of treasury stock for employee awards, net
1,393

 
1,741


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