GNC Holdings (GNC) Reports Q1 Earnings, Revenues Down Y/Y
Zacks Investment Research | Apr 25, 2019 10:42PM ET
GNC Holdings, Inc. (NYSE:GNC) reported first-quarter 2019 adjusted earnings per share of 15 cents, down 37.5% from the year-ago quarter. Reported loss per share for the quarter came in at 23 cents against earnings of 7 cents a year ago.
Revenues
Revenues for the first quarter came in at $564.8 million, down 7% year over year.
Segmental Details
GNC Holdings reports operations under three segments: U.S. & Canada (including company-owned stores in the United States, Puerto Rico and Canada, franchise stores in the United States and e-commerce), International (inclusive of franchise locations in approximately 50 countries, The Health Store and China operations) and Manufacturing/Wholesale (comprising manufactured products sold to other segments, third-party contract manufacturing and sales to wholesale partners).
During the reported quarter, GNC Holdings’ revenues from the U.S. & Canada segment fell 4.5% year over year to $489.2 million. Notably, e-commerce sales accounted for 7.4% of U.S. and Canada revenues, increasing from 7.1% in the prior-year quarter.
Company-owned net store closures negatively impacted revenues by $14 million. Further, a decline of 1.6% in same store sales led to a fall of $6.2 million in revenues within this segment. However, in domestic franchise locations, same store sales increased 0.6% from the year-ago period.
Revenues in the International segment rose 2.1% to $40.9 million for the quarter under review. The improvement can primarily be attributed to an increase in the sales volume in the international franchisees. However, a decline in the sales volume in China due to the transfer of the cross border e-commerce China business to the newly formed joint venture (effective Feb 13, 2019) partially offset the upside.
Revenues in the Manufacturing /Wholesale segment registered year-over-year plunge 37% to $34.7 million, excluding intersegment sales. This was mainly due to the transaction with International Vitamin Corporation (IVC) for the newly founded manufacturing joint venture (JV) effective Mar 1, 2019.
GNC Holdings, Inc. Price, Consensus and EPS Surprise
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