GNC plans 125 net new domestic stores in 2015

Pittsburgh - GNC Holdings Inc. is looking to 2015 as a year of expansion. The retailer plans to open 125 total net new domestic (including both company-owned and franchised stores) and retail segment locations, approximately 150 net new international franchise locations, and approximately 30 net new GNC-Rite Aid store-within-a-store locations.



GNC announced its store growth plans as part of its fourth quarter 2014 financial results. During the quarter, net income rose 9% to $51.77 million from $47.66 million. A decrease in interest expense drove the rise in profits.



GNC also reported consolidated revenue of $607.2 million, a decrease of 0.7% from $611.5 million. Same-store sales declines of 3% in domestic corporate stores and 2.6% in domestic franchise stores, as well as declining manufacturing/wholesale sales, drove the overall revenue decline.



"I am very excited about 2015,” said Mike Archbold, CEO. “We will be focused on a number of important initiatives, including our brand evolution, product introductions, effective marketing and customer-focused decision making throughout the organization, which is the result of our cultural transformation. In 2015 we expect to see retail product margin improvements, improved marketing effectiveness, measured growth internationally, and working capital improvement."



During the full fiscal year, net income fell 3% to $255.87 million from $265.02 million. Revenue dropped 1% to $2.61 billion, from $2.63 billion.



For the full fiscal year 2015, GNC s forecasting a mid-single-digit increase in consolidated revenue, based on achieving a low-single-digit increase in domestic company-owned same store sales, including the impact of GNC.com.