GNC (GNC) Plunges 27% After Hilariously Bad Conference Call
The numbers weren’t much better in international trading. The single bright spot was in Japan, where Tokyo’s Nikkei closed up 33 points on the day. Hong Kong’s Hang Seng dropped by 134 points, and Australia’s ASX fell by 64. Across Europe, markets were uniformly down.
GoPro (GPRO) Falls 15%Adventure camera manufacturer GoPro (GPRO) had a tough Q3 according to earnings reports released today. The company is losing market share for its core business and failing to expand into additional markets. The problem has been plaguing GoPro for a few quarters now, but it all seems to be coming to a head.
GoPro manufactures expensive digital cameras, which are notoriously rugged. There are many videos floating around of people going sky diving and jumping off of cliffs with GoPro cameras attached, not to mention a few videos of wildlife stealing the cameras with all of the footage intact. However that hasn’t been enough for GoPro to grow, and in fact it seems to be stalling out.
One of the problems with their cameras is the price point. It costs a lot for quality manufacturing, which GoPro does deliver on. However people are willing to pay less lately, and that has hurt sales. GoPro is also having problems with diversification and breaking into new markets, and the price of its cameras overseas are hurt by the relatively strong dollar. All of it is adding up to one gigantic mess for the camera company.
GNC (GNC) Plunges 27% After Hilariously Bad Conference CallA conference call went really wrong today for GNC (GNC) right at the worst time imaginable. The call, which was to announce lackluster Q3 earnings, suffered from technical glitches and an operator who had problems telling people apart, even misidentifying some high-powered investors’ gender. The call, which was delayed due to technical issues, finally kicked off at 10:30 this morning.
GNC has been plagued with problems over and above a bad conference call and less-than-stellar quarter. It’s recently come to light that the company has been selling supplements spiked with banned substances in Oregon, and likely in other stores as well. All of it has added up to a perfect storm at GNC, which is now trading down 40% year over year.
Published on Oct 29, 2015By Aaron Phillips