GNC’s Q1 income takes a dive

GNC Holdings’ income and revenue declined in the first quarter, but the company said it is encouraged by the results of its marketing and pricing revamp.



Net income totaled $23.9 million, or 35 cents per share during the quarter, compared with $50.8 million, or 69 cents per share, in the year-ago period year. Adjusted earnings were 37 cents per share, which was above estimates.



Revenue totaled $644.8 million during the quarter from $668.9 million last year, but still above estimates.



Same store sales decreased 3.9% in domestic company-owned stores.



GNC shut down all of its U.S. stores for one day in December to switch its pricing to a new simplified system. It also debuted a new rewards program. The retailer said 5 million consumers had joined the myGNC Rewards program by the end of its first quarter. It said it will begin leveraging information from the program to "better reach and more cost effectively speak to its customers."



"The One New GNC, represents a fundamental change in our business model and in the first quarter of 2017, we saw those transformational changes begin to bear fruit," said Bob Moran, interim CEO, GNC. "We're encouraged by positive trends in transactions, and by the early performance of our new loyalty programs, which are demonstrating their power to increase consumer frequency and spending."