GNC Holdings (GNC) Misses Q1 EPS by 7c; Guides Lower

GNC Holdings (NYSE: GNC) reported Q1 EPS of $0.69, $0.07 worse than the analyst estimate of $0.76. Revenue for the quarter came in at $668.9 million versus the consensus estimate of $667.84 million.

GUIDANCE:

GNC Holdings sees FY2016 EPS of $2.80-$2.90, versus prior guidance of $3.15-$3.35 and the consensus of $3.25.

Mike Archbold, Chief Executive Officer, said, "Although we experienced positive sales trends across parts of our business, these trends were more than offset by challenges in the vitamin business, driven by the decline in Vitapak® sales, and pricing pressure created by our clearing of expiring product which impacted both sales and margin during the quarter. While we are working to address the challenges in our vitamin business, we expect to face headwinds in the business for the balance of the year and are adjusting our guidance accordingly."

Mr. Archbold continued, "We are not pleased with the reported results for the quarter and find them unacceptable. While we are making progress on our strategic evolution which we started in 2014, the turnaround is taking longer than expected and the progress is insufficient. Our number one priority is our vitamin business and the steps we need to take to grow same store sales in this category through new promotions and a renewed marketing focus. In addition, we are reducing the significance of aged inventory, optimizing our assortment and training store associates to emphasize the vitamin solution to our customers."

For earnings history and earnings-related data on GNC Holdings (GNC) click here.

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