Net sales in 2022 was $421.9 million compared to $444.1 million in 2021. Excluding unfavorable foreign exchange rates, net sales in 2022 were up marginally compared to the prior year.
Gross margin in 2022 was 71.0% compared to 74.0% in 2021. The decrease in gross margin for the year was primarily a result of foreign exchange headwinds, increases in material, production, transportation and distribution costs, and changes in market mix.
Volume incentives as a percentage of net sales in 2022 were 30.9% compared to 31.5% in 2021. The decrease is primarily due to changes in market mix, reflecting growth in markets where volume incentives as a percentage of net sales are lower than the consolidated average, and reflects cost savings from the September 2020 launch of our new consultant sales and compensation plan in North America and Latin America and Other.
SG&A in 2022 were $153.1 million compared to $154.1 million in 2021. The decrease was primarily related to lower service fees that resulted from a decline in China’s net sales, lower expenses relating to declines in Russia and Other’s net sales, and lower compensation expense, partially offset by increases in planned events, promotions and marketing. As a percentage of net sales, SG&A expenses were 36.3% in 2022 compared to 34.7% in 2021.
As mentioned above SG&A were down primarily due to lower services fees paid out because of lower China sales. Grabbed the below for their SEC filing:
China market, net sales decreased approximately $8.9 million, or 18.3 percent, for the year ended December 31, 2022, compared to 2021. Fluctuations in foreign exchange rates had a $1.4 million unfavorable impact on net sales for the year ended December 31, 2022. In local currency, net sales decreased 15.5 percent for the year ended December 31, 2022, compared to 2021. The decrease in net sales was primarily the result of additional government restrictions in the market intended to slow the spread of COVID-19, which included lockdowns during various parts of the year ended December 31, 2022.
(Complete SEC Filing CLICK HERE)