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GNC Holdings (GNC) Q1 Earnings Top Estimates, Sales Drop Y/Y

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GNC Holdings, Inc. (GNC - Free Report) is a leading global specialty retailer of health, wellness and performance products, including vitamins, minerals and herbal supplement products ("VMHS"), sports nutrition products and diet products. The company has a worldwide network of more than 8,905 locations.

Currently, GNC Holdings has a Zacks Rank #3 (Hold) but that could change following its first quarter 2018 earnings report which has just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here). We have highlighted some of the key details from the just-released announcement below:

Earnings: The current Zacks Consensus Estimate is pegged at 20 cents per share. GNC Holdings’ first quarter 2018 adjusted earnings per share of 24 cents exceeded this estimate by 20%.

GNC Holdings, Inc. Price and EPS Surprise

GNC Holdings, Inc. Price and EPS Surprise | GNC Holdings, Inc. Quote

Sales: GNC Holdings posted sales of $607.5 million in the reported quarter, a 7.2% drop on a year-over-year basis.

Key Stats: Revenues in U.S. and Canada segment decreased 4.5% to $512.4 million. Revenues from manufacturing/wholesale segment (excluding intersegment revenue) decreased 1.4%, to $55.1 million.

Major Factors: Per management, GNC Holdings saw year-over-year decline in revenues primarily due to the sale of Lucky Vitamin on Sep 30, 2017, which resulted in a $22.7 million reduction to revenues. Also, the termination of the U.S. Gold Card Member Pricing program in the prior year quarter resulted in a $23 million decrease in revenues.However, the company has delivered meaningful gross margin growth, driven by increased penetration of private label brands.

Stock Price: Following the earnings release, share prices gained 3.7% in the pre-market trading session.

Check back later for our full write up on this GNC Holdings earnings report later!

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