Vitamin Shoppe (VSI) 1Q Upside But Comp Woes Continue - Jefferies

Jefferies analyst, Mark Wiltamuth, noted that Vitamin Shoppe (NYSE: VSI) 1Q16 Adj. EPS beat expectations by $0.02, but comps fell -1.9% and EBIT margins were down 50bps. The company is working to reinvent itself but core operating results remain weak. Merchandise margins were a bright spot in the quarter on better mix and private label penetration, but sales trends remain a concern. Low valuation may entice value buyers, but comps will need to turn to support a sustained valuation recovery.

Maintain HOLD but the price target goes to $32 from $30.

For an analyst ratings summary and ratings history on Vitamin Shoppe click here. For more ratings news on Vitamin Shoppe click here.

Shares of Vitamin Shoppe closed at $29.30 yesterday.

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