GNC (GNC) Misses on Earnings, Revenue, Shares Off 14 Percent
Shares of GNC Holdings (GNC) closed down -7.64 or -14.64 percent to $44.72 per share on Friday, after the company announced fourth quarter earnings after Thursdayâ s close. The company reported adjusted earnings of $60.6 million, or $0.63 per share, versus $49.8 million, or $0.50 for the same quarter one year ago. Fourth quarter revenue came in at $613.7 million, versus $565 million for 2012â s fourth quarter, an increase of +8.6 percent.
The analyst consensus for earnings had been $0.64 on revenue of $631.5 million. Shares reacted to the companyâ s forecast for 2014 full year. GNC predicted it would earn $3.18 to $3.24, well below analyst estimates of $3.46.
Pittsburgh, Pennsylvania based GNC Holdings is the parent company of General Nutrition Corp. Founded in 1935 as a health food store, the company specializes in retailing health and nutrition products such as vitamins, herbs, minerals, supplements, diet and energy products among others. The company operates 8,593 retail outlets throughout the country and in 49 countries around the world and also markets products through its online website. GNC employs more than 14,000 people. According to GNC, the company had poor sales in January and so far this month, mainly due to shoppers staying home in the recent bad weather, and also because many people bought promotional products during the November â " December season affecting sales for the quarter. Joe Fortunato, GNCâ s Chairman, President and Chief Executive Officer, said in a telephone conference after the earnings release, "Two hundred fifty of our stores were closed yesterday. That's just yesterday, we're struggling like a lot of other retailers.â
Published on Feb 17, 2014
By Jay Hawk