Dallas, Texas 05/08/2014 (FINANCIALSTRENDS) – Specialty retailer of health and wellness products GNC Holdings Inc. (NYSE:GNC) released its 1Q14 earnings on May 6, 2014. Yesterday the stock traded with whopping volume of 15.74 million shares against its 30 day average volume of 1.45 million shares. The stock tumbled by 13.52% during yesterday’s trade and closed at $37.75. During the trade, the stock also hit fresh 52 week low of $35.26, falling beneath its previous low of $42.54. Its 52 week high is of $60.62. The stock is down over 35% year to date.
1Q14 Performance Highlights:
GNC Holdings Inc. (NYSE:GNC) reported consolidated revenue of $677.3 million during 1Q14, up 1.9% from consolidate revenue of $664.7 million reported during 1Q13. Segment wise, the company reported 3.1% growth in Retail segment revenue, 1.4% decline in Franchise segment revenue and 2.2% decline in Manufacturing segment revenue.
The company reported 0.7% decrease in its same store sales in domestic company owned stores during 1Q14. The decrease was largely attributed to severe weather conditions during January and February which negatively impacted sales. Following which company reported positive same store sales in March. Same store sales decreased 3.2% in its domestic franchise locations during 1Q14.
GNC Holdings reported year over year decrease in its net income which was $69.9 million during 1Q14 as compared to $72.6 million during 1Q13. Earnings were reported at $0.75 per diluted share for 1Q14 as compared to $0.73 per diluted share in 1Q13, suggesting 2.7% increase.
Executive Comment:
President and Chief Executive Officer of GNC Holdings Inc. (NYSE:GNC), Joe Fortunato expressed, “Recent trends have also been affected by an unusually significant amount of negative media, and year-over-year sales hurdles in the third-party diet and pre-workout categories. Based on our current information it looks like these recent trends will persist for the next few quarters.”
Fortunato expressed that the company will continually keep introducing superior products to counter these challenges and to secure its leadership position in key growth categories.
