GNC disappoints in Q2

Pittsburgh – GNC Holdings Inc. missed Wall Street expectations for profit and revenue in a generally disappointing second quarter of fiscal 2015. GNC reported net income of $67.4 million, a decrease of 4% from $69.9 million for second quarter 2014.



Cost of sales increases were a key factor in reduced net income. GNC reported consolidated revenue of $678.5 million, an increase of 0.5% as compared with $675.2 million. Revenue growth was limited by a 2.8% same-store sales drop in company-owned stores, including GNC.com.



“Our retail business delivered improving trends as the second quarter progressed, which are a result of the sales recapture initiatives identified and implemented earlier in the quarter,” said Mike Archbold, CEO. “We expect the benefits of these initiatives to continue to contribute in the second half of 2015.”



Looking ahead, GNC plans to increase the percentage of domestic franchise locations by having a larger percentage of franchise-owned new stores and executing a refranchising strategy. GNC is forecasting a low single-digit increase in consolidated revenue for the full year 2015. This is based on an expected low single-digit increase in domestic company-owned same-store sales for the remainder of 2015, including the impact of GNC.com, as well as modest revenue growth internationally.