GNC Holdings on Thursday reported declines in revenue and net income for the third quarter, as the Pittsburgh-based vitamin and supplement retailer continues its transition under its One New GNC strategy under the leadership of new CEO Ken Martindale.
For the three months ending Sept. 30, GNC saw revenue from its U.S. and Canada operations decrease $18.4 million to $507.1 million, a 3.5 percent drop when compared with the same period a year earlier.
GNC also saw $21.5 million in net income, compared with $32.4 million for the third quarter of 2016.
Chief Financial Officer Tricia Toliver cited three factors in the decrease, starting with the impact this summer’s hurricanes had on its stores in Texas, Florida and Puerto Rico. Ms. Toliver said many of the Puerto Rico stores remain closed. “It is unlikely they will open in the next few months,” she said.
She also pointed to a reduction in the company’s advertising spend for the quarter and customers’ redemption of accumulated reward points as the company auto-activated accounts in September.
The adjusted earnings per share of 32 cents missed analysts’ estimates by one cent.
GNC shares fell sharply following Thursday morning's quarterly financial briefing. Shares closed Thursday at $6.65, down 18.1 percent from Wednesday's $8.12 closing price.
Mr. Martindale, who took over the helm at GNC six weeks ago, allowed Thursday morning, “We still have more work to do on the margins” but said the company is positioning itself for long-term growth.
“This company has extraordinary potential. We’re on the right track and we like the trends we’re seeing.”
Steve Twedt: stwedt@post-gazette.com or 412-263-1963.
First Published: October 26, 2017, 2:05 p.m.
