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GNC Holdings (GNC) Misses on Q1 Earnings and Revenues

GNC Holdings, Inc.GNC is a leading global specialty retailer of health, wellness and performance products, including vitamins, minerals and herbal supplement products ("VMHS"), sports nutrition products and diet products. The company has a worldwide network of more than 8,900 locations.

Currently, GNC Holdings has a Zacks Rank #3 (Hold) but that could change following its disappointing first quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: The Zacks Consensus Estimate remained steady at 75 cents per share over the last 60 days. GNC Holdings’ adjusted earnings per share of 69 cents missed this estimate by 8%.

Sales: GNC Holdings posted sales of $668.9 million and missed the Zacks Consensus Estimate for revenues of $671 million.

Key Stats: Revenues from GNC Holdings’ franchise segment dropped 5.6% year over year to $115.5 million in the first quarter. Revenues from the retail segment also declined 1.5% to $496 million, while revenues from manufacturing/wholesale segment (excluding intersegment revenue) increased 3.5% to $57.5 million.

Major Factors:Overall, in the first quarter, GNC Holdings challenges in the vitamin business, driven by the decline in the company’s Vitapak sales, and pricing pressure created by its clearing of expiring product. This in turn impacted both sales and margin growth during the quarter. Such dismal performance in the first quarter has forced the company to reduce its 2016 sales guidance.

Stock Price: Following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this GNC Holdings earnings report later!

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