BRIEF: GNC shares spike, despite first quarter earnings slide
Pittsburgh Post-Gazette (PA)
April 18—GNC Holdings Inc. saw its first quarter net income halved from the previous year, the company reported Tuesday, falling to $23.9 million from $50.8 million, while earnings per share of 35 cents compared with 69 cents a year earlier.
But both its earnings results and quarterly sales of $644.8 million beat analysts' estimates of 33-34 cents per share and $623-630 million in sales, sending GNC stock soaring more than 17 percent in early trading.
Interim CEO Robert Moran says the Pittsburgh-based vitamin and wellness retailer is encouraged by key early trends since the Dec. 29 companywide launch of its One New GNC marketing campaign featuring simplified pricing and a new loyalty program.
Specifically, Mr. Moran pointed to a 9.3 percent growth in transactions the first quarter as a sign GNC is bringing back customers to its products, calling it “the strongest growth the company has seen in years.”