GNC falls short in Q3

GNC had higher expectations for its third quarter earnings.



The nutritional supplement retailer reported revenue of $628.0 million, a decrease of 8.1% compared with $683.4 million for third quarter 2016, ended Sept. 30, 2016. Similarly, GNC’s net income of $32.4 million dropped compared with $45.8 million in third quarter 2015.



Same-store sales decreased 8.5% in domestic company-owned stores (including GNC.com sales) in third quarter 2016. For domestic franchise locations, same-store sales decreased 8.9% in third quarter 2016.



"Our results for the quarter fell short of our expectations, but we have been moving quickly to address the key issues that are critical to returning GNC to growth,” said Robert F. Moran, interim CEO.



One of these growth programs is the company’s renewed focus on loyalty. GNC launched a pilot for a free loyalty program in seven markets where it has “radically changed our pricing methodology,” Moran reported.



“These changes are not quick fixes, but are designed to fundamentally change the way GNC engages with its customers,” he said. “While it's early in the test, we are excited about the results that we are seeing in the pilot markets and look forward to sharing more details over the next several quarters.”