Exhibit 99.1

Natural Health Trends Reports Second Quarter 2018 Financial Results

Maintained strong gross profit and operating income margins
Declared special dividend of $0.25 per share
Increased quarterly dividend 7% to $0.15 per share

LOS ANGELES – August 1, 2018 – 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 second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights

Total revenue of $50.9 million decreased 1% compared to $51.5 million in the second quarter of 2017, and decreased 3% compared to $52.4 million in the first quarter of 2018.
Revenue from the Company’s Hong Kong operations, which represented 88% of total revenue, was $44.6 million, a decrease of 2% compared to $45.7 million in the second quarter of 2017.
Revenue outside of Hong Kong of $6.3 million increased 9% compared to $5.8 million in the second quarter of 2017.
Gross profit was $40.5 million compared to $41.7 million in the second quarter of 2017, and $42.1 million in the first quarter of 2018. As a percent of total revenue, gross profit was 80% compared to 81% in the second quarter of 2017 and 80% in the first quarter of 2018.
Operating income was $10.1 million compared to $12.9 million in the second quarter of 2017, and $10.0 million in the first quarter of 2018. As a percent of total revenue, operating income was 20% compared to 25% in the second quarter of 2017 and 19% in the first quarter of 2018.
Net income was $9.0 million, or $0.80 per diluted share, compared to net income of $10.3 million, or $0.91 per diluted share, in the second quarter of 2017, and $8.8 million, or $0.78 per diluted share, in the first quarter of 2018.
The number of Active Members1 decreased 2% to 93,000 at June 30, 2018, compared to 95,040 at March 31, 2018, and decreased 13% compared to 107,290 at June 30, 2017.
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.

Year-to-Date 2018 Financial Highlights

Total revenue of $103.3 million decreased 7% compared to $111.3 million in the first six months of 2017.
Gross profit was $82.7 million compared to $90.3 million in the first six months of 2017. As a percent of total revenue, gross profit was 80% compared to 81% in the first six months of 2018.

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Operating income was $20.2 million compared to $25.9 million in the first six months of 2017. As a percent of total revenue, operating income was 20% compared to 23% in the first six months of 2017.
Net income was $17.8 million, or $1.58 per diluted share, compared to net income of $20.7 million, or $1.84 per diluted share, in the first six months of 2017.

Management Commentary

“Our second quarter performance reflected a continuation of the momentum we established in the fourth quarter of 2017,” commented Chris Sharng, President of Natural Health Trends. “The 3% sequential decline in quarterly revenue can be attributed to the timing of our promotional activities. Major incentive trips, such as those to Australia and Seattle, took our members out of the markets in the second quarter. However, the associated qualification periods concluded in prior quarters.”

Balance Sheet and Cash Flow

Net cash provided by operating activities was $5.3 million, compared to $6.8 million in the second quarter of 2017. For the first six months of 2018, net cash provided by operating activities was $16.5 million, compared to $20.6 million in the first six months of 2017.
On July 18, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.15, which represents a 7% 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 24, 2018 to stockholders of record as of August 14, 2018.

Second Quarter 2018 Financial Results Conference Call

Management will host a conference call to discuss the second quarter 2018 financial results today, Wednesday, August 1, 2018 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Wednesday, August 1, 2018
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:
13681507
Webcast:
http://public.viavid.com/index.php?id=130459
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 1, 2018 through 11:59 p.m. Eastern Time on August 15, 2018 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13681507.

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.


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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 27, 2018 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
         
Investor Contact:
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, 2018
 
December 31, 2017
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
128,270

 
$
135,311

Inventories
10,358

 
8,398

Other current assets
5,550

 
7,534

Total current assets
144,178

 
151,243

Property and equipment, net
1,025

 
1,149

Goodwill
1,764

 
1,764

Restricted cash
3,111

 
3,167

Deferred tax asset
1,435

 
1,435

Other assets
854

 
796

Total assets
$
152,367

 
$
159,554

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
2,995

 
$
1,751

Income taxes payable
257

 
309

Accrued commissions
10,399

 
11,170

Other accrued expenses
8,157

 
7,605

Deferred revenue
3,831

 
4,455

Amounts held in eWallets
14,902

 
15,152

Other current liabilities
1,446

 
1,479

Total current liabilities
41,987

 
41,921

Income taxes payable
17,395

 
19,052

Deferred tax liability
75

 
56

Long-term incentive
7,342

 
7,904

Total liabilities
66,799

 
68,933

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock

 

Common stock
13

 
13

Additional paid-in capital
86,415

 
86,683

Retained earnings
39,662

 
44,908

Accumulated other comprehensive loss
(774
)
 
(413
)
Treasury stock, at cost
(39,748
)
 
(40,570
)
Total stockholders’ equity
85,568

 
90,621

Total liabilities and stockholders’ equity
$
152,367

 
$
159,554



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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,
 
2018
 
2017
 
2018
 
2017
 
(Unaudited)
Net sales
$
50,910

 
$
51,465

 
$
103,277

 
$
111,339

Cost of sales
10,399

 
9,793

 
20,620

 
21,038

Gross profit
40,511

 
41,672

 
82,657

 
90,301

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
22,310

 
22,075

 
45,290

 
48,040

Selling, general and administrative expenses
8,093

 
6,730

 
17,215

 
16,402

Total operating expenses
30,403

 
28,805

 
62,505

 
64,442

Income from operations
10,108

 
12,867

 
20,152

 
25,859

Other income, net
53

 
80

 
216

 
236

Income before income taxes
10,161

 
12,947

 
20,368

 
26,095

Income tax provision
1,138

 
2,644

 
2,521

 
5,367

Net income
$
9,023

 
$
10,303

 
$
17,847

 
$
20,728

Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.80

 
$
0.92

 
$
1.58

 
$
1.84

Diluted
$
0.80

 
$
0.91

 
$
1.58

 
$
1.84

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
11,298

 
11,243

 
11,292

 
11,236

Diluted
11,305

 
11,274

 
11,297

 
11,264

Cash dividends declared per common share
$
1.90

 
$
0.45

 
$
2.03

 
$
0.89



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Six Months Ended June 30,
 
2018
 
2017
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
17,847

 
$
20,728

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
235

 
276

Stock-based compensation

 
17

Cumulative translation adjustment realized in net income

 
(258
)
Changes in assets and liabilities:
 
 
 
Inventories
(2,057
)
 
1,388

Other current assets
1,955

 
489

Other assets
(73
)
 
(58
)
Accounts payable
1,246

 
226

Income taxes payable
(1,705
)
 
4,304

Accrued commissions
(707
)
 
(915
)
Other accrued expenses
1,119

 
(3,229
)
Deferred revenue
(592
)
 
(939
)
Amounts held in eWallets
(192
)
 
(327
)
Other current liabilities
(24
)
 
(24
)
Long-term incentive
(562
)
 
(1,049
)
Net cash provided by operating activities
16,490

 
20,629

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(113
)
 
(170
)
Net cash used in investing activities
(113
)
 
(170
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Dividends paid
(23,093
)
 
(10,078
)
Net cash used in financing activities
(23,093
)
 
(10,078
)
Effect of exchange rates on cash, cash equivalents and restricted cash
(381
)
 
(41
)
Net (decrease) increase in cash, cash equivalents and restricted cash
(7,097
)
 
10,340

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
138,478

 
128,884

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$
131,381

 
$
139,224

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Issuance of treasury stock for employee awards, net
554

 
1,393



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