In Q3, we reported worldwide net sales of $1.4 billion, a decline of 6% compared to the prior year period.
On a two year stack basis, net sales grew 15% compared to the third quarter of 2019.
For the third quarter, we reported earnings per share of $1.09 per diluted share and net income of $117.4 million.
Adjusted diluted earnings per share of $1.21 was above the top end of our revised Q3 guidance.
Adjusted EBITDA of $222.4 million also exceeded the high end of our guidance range.
For the quarter, the number of new distributors and preferred customers joining the business was down 19% compared to record numbers of new entrants in Q3 2020, but it was still up 28% compared to Q3 of 2019, excluding China.
In Q3, the number of sales leaders actively selling in the channel was up 10% compared to the prior year period, excluding China.
The Asia Pacific region had another quarter of double-digit net sales growth, up 11% compared to the prior year.
The region was led by continued strength in India, which grew 46%.
Over 220,000 new preferred customers joined the business in India, a record number, and a reflection of the momentum that we are seeing in that market.
In Vietnam, government COVID restrictions forced our Nutrition Clubs to close for the quarter, which contributed to growth of 13%, which was lower than the growth rates we had recently experienced in that market.
Additionally, a third wave of COVID-19 throughout Indonesia resulted in community restrictions in all provinces, and impacted our nutrition club utilization, resulting in a sales decline of 10%.
We saw a decline in net sales of 11%.
The two year stacked growth rate in the region increased 38% compared to Q3 of 2019.
Similar to the North America region, EMEA experienced a challenging year-over-year comparison, resulting in a 4% decline.
However, in the region, we have seen a 16% year-over-year increase in the number of active supervisors, which reflects the continued strength and solid foundation of the EMEA business.
Looking at the two year stack in the region, EMEA grew 33% compared to the third quarter of 2019.
Although the combined new distributor and preferred customer numbers are lower than Q3 2020, we saw growth of 24% compared to the more normalized 2019 comparison period.
In China, net sales declined 30% compared to the third quarter of 2020.
And this has contributed to impressive growth in the energy, sports and fitness category, which has increased at an 18% three year CAGR from 2017 through 2020 and growth of 31% year-to-date.
Currently, products introduced in the prior three years represent only 14.5% of volume points in 2020.
Our strategic objective is to increase sales attributable to new product development within the last three years to 25% over the next five years by localizing product development and improving speed to market.
Third quarter net sales of $1.4 billion represents a decrease of 6% on a reported basis compared to the third quarter in 2020.
This was in line with updated guidance we provided in September, and a 15% increase on a two year stack basis compared to Q3 2019.
We had year-over-year net sales growth in three of our five largest markets, consisting of the U.S., which decreased 11%.
China, which was down 30%.
And Vietnam, up 13%.
Currency was a tailwind to net sales in the quarter, representing a benefit of approximately 165 basis points, excluding Venezuela.
Reported gross margin for the third quarter of 78.7% decreased by approximately 10 basis points compared to the prior year period.
Third quarter 2021 reported and adjusted SG&A as a percentage of net sales were 34% and 33.6%, respectively.
Excluding China member payments, adjusted SG&A as a percentage of net sales was 27.6%, approximately 100 basis points unfavorable compared to the third quarter 2020.
For the third quarter, we reported net income of approximately $117.4 million or $1.09 per diluted share.
Adjusted earnings per share of $1.21 was above the high end of our Q3 guidance, and was an increase of approximately 5% compared to the prior year period.
Currency was a benefit of $0.04 in the quarter versus the prior year period.
Adjusted EBITDA of $222 million also exceeded the high end of our guidance range.
Over the first nine months of the year, the company has generated over $409 million of net income and $740 million of adjusted EBITDA.
We are reiterating our fiscal year 2021 guidance for the top and bottom line.
Our fiscal year 2021 capex guidance has been updated to a range of $145 million to $175 million.
Currency remains a tailwind, and we project an approximate 200 basis points tailwind due to currency for the full year compared to the expected 220 basis points benefit from a quarter ago.
For the full year, our guidance includes a projected currency tailwind of approximately $0.11 per diluted share, which is $0.04 lower than the currency benefit included in our prior guidance.
Through the first nine months of the year, we have generated approximately $375 million of operating cash flow.
At the end of the quarter, we had $678 million of cash on hand.
During the third quarter, we completed approximately $162 million in share repurchases.
Given the level of our share price, we were able to opportunistically accelerate our repurchases ahead of our initial expectation of $100 million for the quarter.
Our fully diluted share count as of the end of Q3 was approximately $105.3 million.
We expect to complete approximately $100 million of share repurchases during the fourth quarter, which will result in just under $1 billion of share repurchases for the full year 2021.

Summary:
In Q3, we reported worldwide net sales of $1.4 billion, a decline of 6% compared to the prior year period.
For the third quarter, we reported earnings per share of $1.09 per diluted share and net income of $117.4 million.
Adjusted diluted earnings per share of $1.21 was above the top end of our revised Q3 guidance.
Third quarter net sales of $1.4 billion represents a decrease of 6% on a reported basis compared to the third quarter in 2020.
For the third quarter, we reported net income of approximately $117.4 million or $1.09 per diluted share.
Adjusted earnings per share of $1.21 was above the high end of our Q3 guidance, and was an increase of approximately 5% compared to the prior year period.
We are reiterating our fiscal year 2021 guidance for the top and bottom line.